Merko Ehitus' sales revenue for the first six months of 2024 amounted to 204 million euros and net profit of 17.5 million euros. Sales revenue in the second quarter amounted to 122 million and net profit – 13.1 million euros. The decreased volumes of development projects were offset by increased sales of construction services, which accounted for almost 90% of sales revenue in the first half of the year. “Taking into account the general mood in the construction and real estate market, we are pleased with the results of the second quarter and first half of the year. We coped well in the changed market situation. Compared to last year, profitability in the first half of the year decreased due to a reduction in the share of development projects. Orders for road construction have decreased very significantly, but this business area does not have a significant influence in the group. Overall, our portfolio of construction services continues to be strong, and apartment sales even increased slightly in the second quarter. We hope that the bottom of the market has been passed,” said Ivo Volkov, Chairman of the Board of AS Merko Ehitus. “The private sector's outlook on the future has become more positive compared to last year and the volume of orders for construction services has increased slightly. The lack of normal orders from the public sector is helping to soften orders for the construction of defense structures and infrastructure. The situations in our home markets vary significantly, with Lithuania still standing out, where economic support and the resulting consumer confidence and willingness of the private sector to invest are clearly visible. Since total market volumes are still significantly less than in better times, competition among those offering their services is very strong, and the margins in concluded contracts are very low, now is a good time to order construction services. Our decision to leave Norway is the result of adapting to the current situation. The construction market, both in Norway and in the Nordic countries in general, is suffering from the effects of inflation, which are familiar to us, and we should not expect a quick improvement,” commented Ivo Volkov on the construction services sector. During the first six months of 2024, the group's companies entered into new construction contracts totaling €140 million, and the balance of work in progress at the end of the six months rose to €438 million. The largest contracts concluded in the second quarter were: in Lithuania – a contract for the construction of the infrastructure of a wind turbine park in the Telšiai region and additional work on the construction of the infrastructure of the NATO training center in Pabrade; in Latvia – construction of the Ignitis solar energy park; in Estonia – additional construction work in the Arter quarter, construction of an “Insect Trail” in Tallinn and preventive road repairs. In the second quarter of 2024, the largest objects in operation were: in Estonia – the TKM Grupp logistics center, the Hampton by Hilton and Hyatt hotel buildings, the Arter quarter, the Defense Forces barracks in the military town of Ämari, the tram line connecting the Old Port and the Rail Baltica passenger terminal in Ülemiste, the first stage of construction of the Ülemiste common transport terminal, Rail Baltica viaducts in Tydva; in Lithuania – construction of the infrastructure of a wind turbine park in the Kelme and Pagegiai regions, a substation in Kelme, as well as infrastructure and various buildings of the NATO training center. In the first six months of 2024, the Merko concern handed over 120 apartments and 9 commercial spaces to buyers and invested a total of 21.3 million euros in development projects. As of the end of the first half of the year, the concern's enterprises had built and were building 671 apartments that had not yet been sold, and 81 apartments covered by preliminary sales agreements. This year, the Merko concern began the construction and sale of four new projects: the new Veerenni stage in Tallinn, Õyelehe in Jüri, the new Erminurme stage in Tartu and Lucavsala in Riga. The largest multi-apartment housing development projects in progress were Uus-Veerenni, Noblessner and Lahekalda in Tallinn; Erminurme in Tartu; Viesturdarzs, Mezpilseta and Magnoliyas in Riga, as well as Vilneles Square in Vilnius.
