Mermeren Kombinat : 2023 07 31 Commentary on the Financial Results for the Period 01/01/2023 to 30/06/2023

Company Mermeren Kombinat AD Prilep
Reporting period 01.01 - 30.06		2023
Income Statement
	In EUR
Previous Period	Curent Period	Indices
Position
01/01-30/06/22	01/01-30/06/23	previous
		year

• Sales revenues

1a Revenues from domestic market

1b Revenues from foreign markets

• Cost of goods sold
  3 Gross Profit
  4 Administrative Costs
  5 Sales and Marketing Cost
  6 Provisions
  7 Other operating revenues
  8 Impairement and Other operating Costs
  9 Operating profit

10 Total Financial Revenue

Financial revenues from investment, loans granted and interest and 10а 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

14.246.252	13.105.445	92
53.662	76.604	143
14.192.590	13.028.841	92
4.981.562	4.862.486	98
9.264.690	8.242.959	89
897.118	724.040	81
1.214.628	930.752	77
0	0	0
67.838	5.871	9
122.652	11.851	10
7.098.130	6.582.187	93
88.800	172.631	194
88.705	172.620	195
95	11	12
0	0	0
89.536	136.463	152
89.536	136.463	152
0	0	0
0	0	0
7.097.394	6.618.355	93
0	0	0
7.097.394	6.618.355	93
-718.729	-428.066	0
6.378.665	6.190.289	97
0	0	0
6.378.665	6.190.289	97
0	0	0
6.378.665	6.190.289	97

Analysis of the operating profit by nature of costs
Previous Period	Curent Period	Indices
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

• Service costs

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

14.246.252	13.105.445	92
3.776	0	0
88.785	5.871	7
-116.430	316.168	0
0	0	0
2.126.975	2.238.296	105
5.503	0	0
1.272.767	1.000.036	79
526.617	494.528	94
2.022.240	2.001.557	99
1.083.366	1.098.928	101
0	0	0
3	7	233
0	0	0
86.782	11.945	14
7.098.130	6.582.187	93

EXPLANATION ON THE OPERATION OF MERMEREN KOMBINAT AD PRILEP

FOR THE PERIOD

FROM 01.01.2023 TO 30.06.2023

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 30 June 2023.

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 30 June 2023, Mermeren Kombinat AD Prilep ("the Company"), generated sales revenue in the amount of €13,105,445, which is a decrease of 8.01% compared to the same period of the previous year.

Sales revenue (in Euro)	2023		2022
- Domestic market	76,604	0.58%	53,662	0.38%
- Foreign market	13,028,841	99.42%	14,192,590	99.62%
	13,105,445		14,246,252
Sales revenue	2023		2022
- Quarry	12,695,231	96.87%	13,583,103	95.35%
- Factory	410,214	3.13%	663,149	4.65%
	13,105,445		14,246,252

The operating profit for the period is in the amount of €6,582,187 which compared to the operating profit for the same period in 2022 in the amount of €7,098,130 represents a decrease of 7.27%.

EBITDA for the period of 01 January to 30 June 2023 is €7,681,115 compared to €8,182,476 for the same period of the previous year, or decrease of 6.13%.

The final result after the tax, for the first semester of 2023 is positive, amounting to €6,190,289 but shows an decrease of 2.95% compared to the profit for the same period of last year, in the amount of €6,378,665.

C. Operating expenses are in the amount of €6,849,297 and represent decrease of 3.92% compared to the same period of the previous year.

The cost of materials and consumables was higher by 5.23%, and employee expenses were decreased by 1.02%.

External services expenses are decreased by 21.43%. Depreciation costs amounted to €1,098,928 and are higher by 1.44% compared to the previous year.

D. 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, compared to the last annual financial reports.

1. No dividends were distributed.
2. Loans of the Company were fully paid.
3. The operations of the Company proceed according to the plan, yet there was a decrease in the turnover compared to the same period of the previous year. The second semester of the year is also expected to yield positive results.