Baltic Exchange: Top Profit Growers

The third-quarter earnings season brought both disappointments and bright surprises to the Baltic stock exchange. Although the general economic environment remains volatile, some companies managed to robustly grow their core operating profit. In this review, we examine four companies whose operating profit growth clearly stood out and analyze the real drivers behind their numbers.

Infortar: Energy Segment Fuels Growth

Infortar delivered a powerful performance in the third quarter, with its operating profit soaring by a staggering 217.5% year-over-year to €64.8 million. At the same time, sales revenue increased by nearly 34%. Although net profit has shown a downward trend in recent quarters, cash flows from core operations remain extremely strong, and the company has successfully expanded its market reach.

Two main engines are behind this impressive growth: the energy segment and maritime transport. Infortar has captured nearly a third (30.5%) of the Finnish-Baltic gas market, which has proven to be a real cash cow. Additionally, the results were supported by a 3% increase in passenger numbers in shipping, generating further revenue. The message for investors is clear: the company's strategic position in the energy market is the primary value driver at the moment, though the dynamics of its net profit warrant close monitoring.

Arco Vara: Apartment Sales Gain Momentum

Real estate developer Arco Vara more than doubled its operating profit, posting a 134.9% increase. While the market was cooler this time last year, the company has now managed to grow its sales revenue by 17.5% and keep costs under control, taking profitability to a new level.

The key to this success lies in simple math and a successful development cycle: the company handed over 25 homes to buyers, compared to 12 a year earlier. This doubling of sales volume proves that demand for high-quality new developments exists despite high interest rates. For investors, this confirms that Arco Vara's projects are progressing as planned and can generate cash flow even in more challenging times.

Ekspress Grupp: New Direction Bears Fruit

Media group Ekspress Grupp delivered a positive surprise, turning its operating profit to 39.1% growth. Even more remarkable was the jump in net profit, which increased more than sevenfold year-over-year. This result was achieved even as the traditional advertising market remains weak.

The growth is not driven by advertising sales but by a strategic shift. The company has successfully expanded into the training and conference business, with revenues from this segment growing by one million euros. This "other revenue" stream excellently compensates for fluctuations in the media market. The share price is currently stable due to a takeover bid from the majority shareholder (€1.24), which offers investors security but limits significant short-term upside.

Harju Elekter: Production Back on Track

Harju Elekter has made a strong turnaround, growing its operating profit by 38.7%. The company has managed to emerge from its previous slump and significantly improve its efficiency—sales revenue grew by 4.5%, while operating expenses were reduced by 4.6%.

Behind this recovery are improved production profitability and successful sales efforts. Revenue from other services grew particularly strongly, more than doubling, and sales of core electrical equipment also increased. For investors, this is a sign that management's focus on cost control and supply chain optimization is working, making the company a competitive industrial enterprise once again.

In summary, these four companies demonstrate that growth is possible even in uncertain times, but its sources vary widely. Infortar is banking on its market share in energy, Arco Vara is realizing development projects, Ekspress Grupp is diversifying its revenue streams, and Harju Elekter is honing its efficiency. Investors should monitor whether these growth drivers prove to be sustainable in the coming quarters.