Mermeren Kombinat : 2023 03 01 Commentary on the financial results for the year 2022

Company MERMEREN KOMBINAT AD PRILEP
Reporting period 01.01 - 31.12	Year 2022
Consolidated report	No
Comprehensive Income Statement
		In EUR
	Previous Period	Curent Period	Indices
Position			curent year
	01/01-31/12/21	01/01-31/12/22	/ previous
			year

• Sales revenues

1a	Revenues from domestic market
1b	Revenues from foreign markets

• Cost of goods sold

• Gross Profit

• Administrative Costs

• Sales and Marketing Cost
  6 Provisions

• Other operating revenues

• Impairement and Other operating Costs
  9 Operating profit

10	Total Financial Revenue
10а	Financial revenues from investment, loans granted and interest and
exchange rate gains
10b	Other Financial Revenue
10c	Income From Associated Companies
11	Total Financial Expenses
11a	Financial expenses from interests and exchange rate losses
11b	Other financial expenses
11c	Losses from Associates

1. Profit from ordinary activities
2. Net Profit from Discountinued activities
3. Profit from ordinary activities before taxation
4. Corporate tax
5. Net profit
6. Net profit minority shareholders
7. Net profit Majority shareholders
8. Total other comprehensive income
9. TOTAL COMPREHENSIVE INCOME

30.127.440	30.379.066	101
156.736	94.205	60
29.970.704	30.284.861	101
8.873.048	10.344.213	117
21.254.392	20.034.853	94
1.776.708	1.529.954	86
2.594.769	2.727.401	105
0	0	0
55.592	133.814	241
454.700	467.375	103
16.483.807	15.443.937	94
264.682	147.696	56
264.682	147.597	56
0	99	0
0	0	0
369.163	242.396	66
368.828	242.396	66
335	0	0
0	0	0
16.379.326	15.349.237	94
0	0	0
16.379.326	15.349.237	94
-1.582.951	-1.399.223	88
14.796.375	13.950.014	94
0	0	0
14.796.375	13.950.014	94
0	0	0
14.796.375	13.950.014	94

Analysis of the operating profit by nature of costs
Previous Period	Curent Period	Indexes
Position		curent year
Year to date	Year to date	/ previous
		year

• Sales revenues

1a Revenues from rents and consumables

• Other operating revenues

• Changes in inventories of finished goods and work in progress

• Cost of trading goods sold

• Cost of consumed materials and other supplies

• Cost of materials, spare parts and other inventory sold
  7 Services

• Other Expenditures

• Personnel Cost

1. Amortization And Depreciation
2. Impairment losses of Non-current assets
3. Impairment losses of current assets
4. Provisions
5. Other operating expenses
6. Operating profit

30.127.440	30.379.067	101
4.950	3.779	76
163.311	160.317	98
352.528	256.357	73
0	0	0
3.711.456	4.934.937	133
2.838	5.508	194
2.743.759	2.884.586	105
742.792	934.827	126
4.212.301	3.999.665	95
2.218.767	2.128.684	96
0	0	0
382.263	229.329	60
0	0	0
150.246	238.047	158
16.483.807	15.443.937	94

EXPLANATION ON THE OPERATION OF

MERMEREN KOMBINAT AD PRILEP

FOR THE PERIOD

FROM 01.01.2022 TO 31.12.2022

In accordance to the changes and additions of the Quotation regulations, we present this explanation to the financial result for the period from 01 January to 31 December 2022.

1. Changes in accounting policies and methods of evaluation of items in the financial statements compared to the latest annual audited financial statements have not been made.
2. For the period from 01 January to 31 December 2022, Mermeren Kombinat AD Prilep ("the Company"), generated sales revenue in the amount of €30,379,066, which is an increase of just 0.8% compared to the same period of the previous year.

Sales revenue	2022		2021
- Domestic market	94,204	0.31%	156,736	0.52%
- Foreign market	30,284,862	99.69%	29,970,704	99.48%
	30,379,066		30,127,440
Sales revenue	2022		2021
- Quarry	29,413,353	96.82%	29,640,967	98.39%
- Factory	965,713	3.18%	486,473	1.61%
	30,379,066		30,127,440

The operating profit for the period is in the amount of €15,443,937 compared to the operating profit for the same period in 2021 in the amount of €16,483,807, representing a decrease of 6.31%.

EBITDA for the period of 01 January to 31 December 2022 is €17,574,582 compared to €18,708,458 for the same period of the previous year, or decrease of 6.06%.

The final result after the tax is positive, amounting to €13,950,014 shows a decrease of 5.72% compared to the profit for the same period last year, in the amount of €14,796,375.

C. Operating expenses are in the amount of €15,355,583 and represent increase of 8.41% compared to the same period of the previous year.

D. The cost of materials and consumables were increased by 32.96% which reflects mainly the increased cost of energy, and employee expenses were decreased by 5.05%.

E. External services expenses are increased by 5.13%. Depreciation costs amounted to €2,128,684 and are lower by 4.06% compared to the previous year.

1. There are no significant investments in tangible assets (real estate, plant and equipment) or significant write-off, higher than 30% of the value of the assets.
2. At 20 April 2022, according to the Shareholders' Assembly decision no. 02- 1705/14, the retained earnings realized till 31 December 2020 and part of the profit for the year 2021 in total amount of €16,029,054 were allocated for dividends distribution. The amount of the gross dividend per ordinary share is determinate at €3.42 (1€=61.695 denars).
   During the period ended 31 December 2022 the Company paid dividends to its shareholders in net amount of €15,853.804 and in addition €172,053 relating to taxes on dividend paid.
3. Loans of the Company were fully paid.
4. Prospects: 2023 is expected to be a period of positive operational and financial performance.