OREANDA-NEWS. AS Linda Nektar is an Estonian-based beverage company with origins in the 1940s. The company is providing fermented beverages for the drinks industry focusing on unpacked fruit wines under a Business-to-Business model. The company’s production facility is located in a logistically favourable position relative to the Baltic and Northern European markets.

The six-month results of the Company have been positive, meeting expectations with regard to increased production volumes and turnover. The sales revenue of AS Linda Nektar for the first six months of 2016 was 2,113,661 euros (first six months of 2015: 1,446,303 euros), showing a 46% y-o-y increase. The Company completed the first half of the year with a net profit of 411,552 euros. The net profit of the same period of the previous year was 242,090 euros, reflecting a 70% y-o-y increase. No changes were made in the product portfolio of the enterprise. Demand for the products of AS Linda Nektar have been generally stable.

AS Linda Nektar has continued its targeted investments in 2016. The investments included construction and repair works, purchases of production equipment for expanding and automating production as well as procurements in the aroma technology area developed by the enterprise. In total, 508,434 euros were invested in property, plant and equipment (first six months of 2015: 194,235 euros). Depreciation expenses in the first half of the year amounted to 167,848 euros (first six months of 2015: 107,697 euros), which have increased due to the aforementioned investments.

Development costs in the first half of the year amounted to 88,159 euros (first six months of 2015: 87,840 euros). In the first half of the 2016 financial year, the second and third payments in the total amount of 81,745 euros were received from the ‘Development project of Linda Nektar production enterprises’ supported by Enterprise Estonia. As at 30 June 2016, the targeted financing received is recorded on the balance sheet as a short-term liability in the final amount of 155,857 euros and that does not have an effect on the profit. Upon the completion of the project in the second half of 2016 and after the fulfilment of the related terms and conditions, the targeted financing will be recorded as operating income.

In the first half of the year, the enterprise paid dividends for the performance of the 2015 financial year in the amount of 141,760 euros. The income tax expense entailed in the payment of dividends to the shareholders amounted to 35,440 euros.

As at 30 June 2016, the enterprise had 11 employees - 1member of the management and 3 supervisory board members. The salary expenses of the first six months of 2016 (including taxes) were 174,372 euros (first six months of 2015: 152,924 euros). Labour costs have increased due to employee salary increases and the payment of performance-related pay.

The enterprise continues to be mainly focused on product and technology development as well as plans concerning the introduction of new aroma technology and the expansion of production.