Management report
Financial review
In H1 2025 AS Linda Nektar (The Company's) unaudited turnover was EUR 1,780,165 (H1 2024: EUR 1,401,531). This marked an increase of 27% year-on-year. The first 6 months of 2025 ended in a net profit of EUR 25,898 (H1 2024: net loss EUR 47,087. Despite the material increase in revenue, the Company's market pricing environment and absolute fixed cost base limited the scope for significant profitability enhancement.
From an industry perspective, there has been a notable rise in international enquiries about non-alcoholic ferments, driven by enterprises responding to increasing consumer demand for healthier, adult-oriented alternatives to traditional alcoholic beverages. Market data highlights that European beer, wine, and spirits companies have been particularly proactive in developing healthier beverage options. This trend reflects greater awareness of the regulatory efforts within the EU to curb alcohol consumption, including proposals to raise excise taxes on alcoholic beverages and tighten restrictions on alcohol sales. Prioritising lower- or no-alcohol products not only helps companies align with these regulatory measures but also allows them to mitigate potential cost increases and expand their market reach.
During the reporting period, the Company launched its non-alcoholic product platform alongside its well-established alcoholic ferments platform. With this addition, the Company is strategically positioned to address the growing demand for fully fermented non-alcoholic beverages. Made from premium fruit juices and fermented using carefully selected yeast cultures and advanced technology, these products meet the needs of consumers looking for healthier alcohol-free and low-alcohol options without sacrificing taste.
The Company remains confident that its non-alcoholic fermented products will differentiate themselves in the market by offering a distinct solution that aligns perfectly with current consumer preferences and broader industry trends. Both platforms provide beverage manufacturers with versatile tools for developing a broad range of beverage options. It is important to note that the development of new products with customers typically requires a certain lead time.
As of 30 June 2025, the Company's total assets came to EUR 3,483,296 (30.06.2024: EUR 3,601,265), marking a decrease of 3.3% year-on-year. Current assets amounted to EUR 1,288,456 (30.06.2024: EUR 1,230,093) or 37% of total assets. Fixed assets amounted to EUR 2,194,840 (30.06.2024: EUR 2,371,172) or 63% of the balance sheet total. Cash and cash equivalents came to EUR 229,286 (30.06.2024: EUR 313,303). Operating cash flow for the first 6 months of 2025 was a positive EUR 220,489 (H1 2024: EUR 161,810).
The liabilities of AS Linda Nektar totalled EUR 345,298 (30.06.2024: EUR 295,100) and equity amounted to EUR 3,137,998 (30.06.2024: EUR 3,306,165). As of 30 June 2025, there were no loan commitments for investments (30.06.2024: EUR 37,484). The Company's attitude towards maintaining a conservative financial gearing policy remains unchanged.
A total of EUR 74,193 was invested into fixed assets (6 months 2024: EUR 59,949). Depreciation costs for the first 6 months of 2025 amounted to EUR 170,257 (6 months 2024: EUR 177,521). All major investments for the near term are largely completed, and sufficient production capacity is in place to accommodate any new projects for clients.
As of 30 June 2025, the Company had 15 employees, one Management Board Member, and three Supervisory Board Members. Labour costs for the 6 months of 2025 (including taxes) amounted to EUR 283,169 (6 months 2024: EUR 257,887).
In H1 2025, the Company paid EUR 47,404 in dividends (6 months 2024: EUR 63,206). The income tax cost on declared dividends was EUR 26,741 (6 months 2024: EUR 20,578).
Taking into account the present operating environment, management reiterates its conservative 2025 revenue guidance figure of EUR 2.6m. One of the reasons for this is a known planned maintenance during the second half of the year, impacting the Company's expected sales volumes.
Financial Ratios
| H1 2025 | H1 2024 | ||
| Current Ratio = Current Assets / Current Liabilities | x | 3.73 | 4.17 |
| Quick ratio = (Current Assets - Inventories) / Current Liabilities | x | 2.02 | 2.25 |
| Working Capital = Current Assets - Current Liabilities | 943 158 | 934 993 | |
| Equity Ratio = Total Equity / Total Assets*100 | % | 90.09 | 91.81 |
| Net Profit Margin = Net Profit / Sales Revenue*100 | % | 1.45 | -3.36 |
| Debt to Assets = Total Liabilities / Total Assets | x | 0.10 | 0.08 |
Statement of financial position
(In Euros)
| 30.06.2025 | 31.12.2024 | 30.06.2024 | |
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 229 286 | 125 136 | 313 303 |
| Receivables and prepayments | 466 602 | 297 139 | 349 775 |
| Inventories | 592 568 | 696 774 | 567 015 |
| Total current assets | 1 288 456 | 1 119 049 | 1 230 093 |
| Non-current assets | |||
| Receivables and prepayments | 31 | 0 | 31 |
| Property, plant and equipment | 2 189 696 | 2 283 543 | 2 360 750 |
| Intangible assets | 5 113 | 7 330 | 10 391 |
| Total non-current assets | 2 194 840 | 2 290 873 | 2 371 172 |
| Total assets | 3 483 296 | 3 409 922 | 3 601 265 |
| Liabilities and equity | |||
| Liabilities | |||
| Current liabilities | |||
| Loan liabilities | 0 | 15 211 | 37 484 |
| Payables and prepayments | 345 298 | 187 802 | 257 616 |
| Total current liabilities | 345 298 | 203 013 | 295 100 |
| Total liabilities | 345 298 | 203 013 | 295 100 |
| Equity | |||
| Issued capital | 1 580 143 | 1 580 143 | 1 580 143 |
| Share premium | 617 517 | 617 517 | 617 517 |
| Statutory reserve capital | 93 629 | 93 629 | 93 629 |
| Retained earnings (loss) | 820 811 | 1 061 963 | 1 061 963 |
| Reporting period profit (loss) | 25 898 | -146 343 | -47 087 |
| Total equity | 3 137 998 | 3 206 909 | 3 306 165 |
| Total liabilities and equity | 3 483 296 | 3 409 922 | 3 601 265 |
Income statement
(In Euros)
| H1 2025 | 2024 | H1 2024 | |
| Revenue | 1 780 165 | 2 543 793 | 1 401 531 |
| Other income | 0 | 10 257 | 258 |
| Changes in inventories of finished goods and work in progress | -104 943 | 111 558 | 10 460 |
| Raw materials and consumables used | -1 042 102 | -1 665 316 | -899 503 |
| Other operating expenses | -127 088 | -248 697 | -103 147 |
| Employee expenses | -283 169 | -522 685 | -257 887 |
| Depreciation and impairment loss (reversal) | -170 257 | -355 080 | -177 521 |
| Other expenses | 0 | -197 | -139 |
| Operating profit (loss) | 52 606 | -126 367 | -25 948 |
| Interest income | 251 | 3 290 | 1 599 |
| Interest expense | -218 | -2 688 | -2 160 |
| Profit (loss) before tax | 52 639 | -125 765 | -26 509 |
| Income tax expense | - 26 741 | -20 578 | -20 578 |
| Reporting period profit (loss) | 25 898 | -146 343 | -47 087 |
Statement of cash flows
(In Euros)
| H1 2025 | 2024 | H1 2024 | |
| Cash flows from operating activities | |||
| Operating profit (loss) | 52 606 | -126 367 | -25 948 |
| Adjustments | |||
| Depreciation and impairment loss (reversal) | 170 257 | 355 080 | 177 521 |
| Other adjustments | 0 | -9 999 | 0 |
| Total adjustments | 170 257 | 345 081 | 177 521 |
| Changes in receivables and prepayments related to operating activities | -169 494 | 46 457 | -6 210 |
| Changes in inventories | 104 206 | -149 658 | -19 899 |
| Changes in payables and prepayments related to operating activities | 62 914 | 36 762 | 36 346 |
| Income tax refund (paid) | 0 | -10 289 | 0 |
| Proceeds from government grants | 0 | 9 999 | 0 |
| Total cash flows from operating activities | 220 489 | 151 985 | 161 810 |
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment and intangible assets | -53 757 | -152 220 | -58 194 |
| Proceeds from government grants | 0 | 66 466 | 66 466 |
| Interest received | 251 | 3 290 | 1 599 |
| Total cash flows from investing activities | -53 506 | -82 464 | 9 871 |
| Cash flows from financing activities | |||
| Repayments of loans received | -15 211 | -131 541 | -109 268 |
| Interest paid | -218 | -2 688 | -2 160 |
| Dividends paid | -47 404 | -126 412 | -63 206 |
| Total cash flows from financing activities | -62 833 | -260 641 | -174 634 |
| Total cash flows | 104 150 | -191 120 | -2 953 |
| Cash and cash equivalents at beginning of period | 125 136 | 316 256 | 316 256 |
| Change in cash and cash equivalents | 104 150 | -191 120 | -2 953 |
| Cash and cash equivalents at end of period | 229 286 | 125 136 | 313 303 |
Statement of changes in equity
(In Euros)
| Issued capital | Share premium | Statutory reserve capital | Retained earnings (loss) | Total | |
| 31.12.2023 | 1 580 143 | 617 517 | 93 629 | 1 188 375 | 3 479 664 |
| Reporting period profit (loss) | 0 | 0 | 0 | -47 087 | -47 087 |
| Declared dividends | 0 | 0 | 0 | -126 412 | -126 412 |
| 30.06.2024 | 1 580 143 | 617 517 | 93 629 | 1 014 876 | 3 306 165 |
| Reporting period profit (loss) | 0 | 0 | 0 | -99 256 | - 99 256 |
| 31.12.2024 | 1 580 143 | 617 517 | 93 629 | 915 620 | 3 206 909 |
| Reporting period profit (loss) | 0 | 0 | 0 | 25 898 | 25 898 |
| Declared dividends | 0 | 0 | 0 | -94 809 | -94 809 |
| 30.06.2025 | 1 580 143 | 617 517 | 93 629 | 846 709 | 3 137 998 |
