SIA Arsenal Industrial unaudited consolidated results for 9 months of 2024
In the reporting period from 1 January 2024 to 30 September 2024, the Group’s net turnover was EUR 8 346 050. Compared to the corresponding period in 2023, it has increased by 5%. The largest impact was from an increase in the sales of goods by 36%. The Group's rental income has decreased by 11%, compared to the last year, because while the rental equipment was transferred from Estonia to Latvia and Lithuania, due to the suspension of economic activities in Estonia, and its maintenance work, the equipment could not generate income. However, it is expected to generate more income next year and more than it did in Estonia. Rental income in Latvia increased by 17% which was facilitated by high demand for the Group's products and good cooperation conditions with suppliers.
Similarly to previous years, the first three quarters of 2024 were completed with losses EUR 398 758. This year the losses are related to the reduction of the Group's operations in Estonia, the transfer of equipment to Latvia and Lithuania, the preparation of equipment for work, repairs and re-registration. Due to these reasons, in the second and third quarters, the Group's own equipment, that previously worked in Estonia, was not available for work and it was necessary to use much more re-rent equipment, which does not give as high a return on EBITDA as own equipment.
As with most construction services companies, the first half of the years earnings were negatively impacted by low activity in the construction market, rising sales force costs and higher interest payments. This reporting period ended with a net loss and a notably lower EBITDA than in the respective period last year. Starting from the fourth quarter, when the Group focuses on working only in the Latvian and Lithuanian markets, it will no longer generate costs in Estonia, and an improvement in the Group's financial results is expected in 2025.
Arsenal initiated a bondholder voting on a proposal to amend the financial covenants – Interest Coverage Ratio and Net Debt Leverage Ratio – in October 2024. The bondholder’s voting closed on 23 October 2024 and 76% of bondholders voted “in favour” of the amendments to the Terms of Issue.
Gints Vanags
SIA Arsenal Industrial, CEO
Mobile: + 371 26 303 848
E-mail: gints.vanags@arsenalrent.com
www.arsenalnoma.lv
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