Already 6,921 people have seen this company's branding and they are being followed by 78 Storybook user.In average the company has been rated 3.8 points ja kommenteeritud 8 korda.

's activity report 2022

Introduction

The main activity of AS Hansa Candle is the production and marketing of candles in the Republic of Estonia and abroad. The product range includes both indoor and outdoor candles. Fuel tools were produced and sold on a smaller scale.

Revenues, expenses and profit

In the reporting year, the sales revenue of AS Hansa Candle was 32,764 thousand euros, increasing by 44% over the year. Sales of own production accounted for 94% of sales revenue and sales of purchased goods 6%. Due to the seasonality of candle sales, turnover in the period August - December accounted for 63% of annual sales revenue.

Exports accounted for 95% of the company's sales revenue in 2022 and sales in Estonia 5%.

Compared to the previous reporting period, the costs of goods, raw materials and materials increased by 47%, various operating costs by 12%. The increase in costs was mainly due to the increase in the prices of goods and services purchased.

The company's financial costs growth is related to the increase in the costs of servicing loans received and the acquisition of another company.

The net loss of AS Hansa Candle for the financial year was 2,136,919 euros, the company's operating profit was 1,126,552 euros.

Main financial ratios

Indicator Calculation methodology of ratios 2022 2021

Sales revenue EUR 32,763,638 22,704,948 (sales revenue 2022- sales revenue

Change in sales revenue % 44 14 2021)/sales revenue 2021*100

Loss/net profit EUR -2,136,919 -516,686

Net profitability % net profit/sales revenue*100 -6 -2

Current assets EUR 12,896,059 9,582,335

Proportion of working capital (current assets - short-term 20 25 of turnover % liabilities)/sales revenue*100

Short-term liabilities coverage ratio times current assets/short-term liabilities 2 2.4 times

ROA % net profit/total assets*100 -14 -4

ROE % net profit/total equity*100 -42 -7

Financial risk management

AS Hansa Candle considers financial risks to be risks that are directly related to the main activity and that reduce the company's financial capacity.

The use of financial instruments exposes the company to the following financial risks: (cid:127) credit risk, which mainly arises from claims against buyers. To reduce credit risk associated with customers, the requirement for advance payments is used for new customers and customers whose solvency is in doubt. To hedge credit risk, a background check of the client is carried out before concluding large-scale contracts. Credit risk management is also supported by periodic monitoring of customer payment behavior and, if necessary, the implementation of measures to satisfy claims. A large part of the claims on customers is covered by credit insurance. As of the reporting date, all known unlikely receivable amounts have been written down.

(cid:127) market risk, which is the risk of changes in the fair value of financial instruments due to changes in market prices. Market risk includes: (cid:127) currency risk, which is the risk that the fair value or cash flows of financial instruments will fluctuate in the future due to changes in exchange rates. To hedge currency risk, a large part of the company's contracts, including loan and capital lease contracts, are euro-based.

(cid:127) price risk is associated with investments in equity instruments. AS Hansa Candle does not have such investments, therefore there is no price risk arising from financial instruments.

(cid:127) interest rate risk, which is the risk that an increase in the interest rate may significantly affect the performance of the company due to an increase in interest expenses payable on obligations. AS Hansa Candle's interest rate risk is associated with long-term debt obligations received from a financial institution, which bear a floating interest rate. Interest rate risk is associated with the possible fluctuation of Euribor. During the reporting year, Euribor was on a slight rise, a rise to 3.5% is forecast for Euribor in 2023. The company's management has assessed the extent of interest rate risks and considers them insignificant.

(cid:127) liquidity risk is the risk that the company will have difficulties in meeting its financial obligations due to a shortage of cash flow.

To hedge liquidity risk, AS Hansa Candle uses various sources of financing - loans, capital lease, as well as regular monitoring of customer claims and supply contracts. Cash flows are planned and monitored on an ongoing basis.