Merko Ehitus: Audited annual report 2021

Merko EhitusAS consolidated audited financial results for 2021 remain unchanged compared to the preliminary disclosure on 10 February 2022.


2021 was a successful year for Merko. We fulfilled the group’s financial goals and investment plans and our profit grew 26%. These targets were met despite the continuing pandemic, supply chain problems, rising costs of construction and a spike in energy prices. Our greater strategic focus on residential development, selection of projects with higher potential, efficient implementation of decisions, and organizational ability to adapt – all rewarded us.

The 18.8% return on equity achieved last year is a good result considering the group’s high capitalization. Moreover, with the purchasing power of money decreasing, the fact that our return on equity outstripped inflation is to be cheered.

During the last two years, we have learned to operate in the environment of coronavirus restrictions, unexpected supply chain disruptions and volatile prices. Just as we thought the pandemic might be ending and we would return to the usual stability, another black swan entered the picture. The Ukraine war and the global economic conflict that started concurrently will not leave us or the construction and real estate sector unscathed. We do not yet know how the further developments will impact us. But we do have the knowledge that is a strong company with a well-functioning team and that we will get by.

I would like to thank the employees and partners of the group for their joint efforts and positive results. I gratefully acknowledge the buyers of the homes we have built and construction service customers for your trust in us. And I thank all of our shareholders who have decided to make the journey with us in the current unstable world.


in thousand euros

2021 2020
Revenue 339,375 315,918
Cost of goods sold (292,563) (272,169)
Gross profit 46,812 43,749
Marketing expenses (3,611) (4,212)
General and administrative expenses (13,925) (13,412)
Other operating income 3,508 2,320
Other operating expenses (582) (2,979)
Operating profit 32,202 25,466
Finance income 12 1
Finance costs (886) (866)
Profit (loss) from associates and joint ventures 799 (144)
Profit before tax 32,127 24,457
Corporate income tax expense (3,104) (1,954)
Net profit for financial year 29,023 22,503
incl.    net profit attributable to equity holders of the parent 29,140 22,994
net profit attributable to non-controlling interest (117) (491)
Other comprehensive income (loss), which can subsequently be classified in the income statement    
Currency translation differences of foreign entities 33 (115)
Comprehensive income for the period 29,056 22,388
incl.    attributable to equity holders of the parent 29,163 22,890
attributable to non-controlling interest (107) (502)
Earnings per share for profit attributable to equity holders of the parent (basic and diluted, in EUR) 1.65 1.30


in thousand euros

31.12.2021 31.12.2020
Current assets    
Cash and cash equivalents 44,930 47,480
Trade and other receivables 55,484 32,657
Prepaid corporate income tax 114 306
Inventories 160,593 126,332
  261,121 206,775
Non-current assets
Investments in associates and joint ventures 7,703 2,354
Other long-term loans and receivables 24,079 17,979
Deferred income tax assets 622 653
Investment property 13,828 13,922
Property, plant and equipment 16,350 14,521
Intangible assets 669 711
63,251 50,140
TOTAL ASSETS 324,372 256,915
Current liabilities
Borrowings 11,636 13,649
Payables and prepayments 90,054 55,846
Income tax liability 681 1,202
Short-term provisions 7,976 6,347
110,347 77,044
Non-current liabilities
Long-term borrowings 41,001 15,409
Deferred income tax liability 3,112 3,001
Other long-term payables 2,900 4,026
47,013 22,436
TOTAL LIABILITIES 157,360 99,480
Non-controlling interests (227) 4,207
Equity attributable to equity holders of the parent
Share capital 7,929 7,929
Statutory reserve capital 793 793
Currency translation differences (791) (814)
Retained earnings 159,308 145,320
167,239 153,228
TOTAL EQUITY 167,012 157,435

AS audited annual report for 2021 is attached to the announcement and is also published on and ’s web page (

2021 Merko Ehitus annual report

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