Develia Group achieved a net profit of PLN 124.7m in Q3 2023
- In the first three quarters of 2023, Develia Group's sales revenues amounted to PLN 786.2 million compared to PLN 320.3 million in the same period last year, an increase of 145%.
- The group's net profit was PLN 124.7 million compared to PLN 49.5 million net profit in the first nine months of 2022, an increase of 147%.
- In the first nine months of 2023, the developer sold 2059 units against 1225 in the same period of 2022, up 68%, and handed over 1298 units against 626 a year earlier, up 107%.
- At the end of September, Develia had PLN 746.3 million in cash and short-term financial assets compared to PLN 481.6 million at the end of 2022.
"The past quarter was very good for Develia. We recorded an all-time record sales of 875 flats. At the same time, the number of handovers grew, which is reflected in significant increases in financial results. This year, the fourth quarter is particularly intense for us. We are maintaining a high level of sales of units, while at the same time we plan to hand over 1,200-1,300 flats to customers. We are investing in the stable growth of the company in the future, which is reflected in further purchases of land and the creation of additional development potential through partnerships, which will affect the further growth of the group," says Andrzej Oślizło, president of Develia.
Develia sold 2059 units in the first nine months of 2023 on the basis of development and pre-development agreements, compared to 1225 in the same period last year, an increase of 68%. The group handed over 1298 units, 107% more compared to 626 units a year earlier. In the first three quarters of 2023. Develia handed over 1,769 units in developments where construction had started.
In Q3 2023, the company sold 876 units, compared to 261 in the same period last year, an increase of 236%. Most flats found buyers in the projects: Aleje Praskie and Krakowska Vita in Warsaw, Orawska in Wrocław and Ceglana Park in Katowice. In the period from July to September this year, Develia handed over 632 units, mainly in the investments Przy Mogilskiej and City Vibe in Krakow, Aleje Praskie and Next Ursus in Warsaw.
At the end of October this year, Develia concluded a letter of intent with funds from one of the TFIs and companies from the Sameko Group on the implementation in JV formula of a multi-stage residential development in Gdynia with a maximum usable area of 90,000 sqm. For PLN 75 million, Develia will take a 50.01% stake in the JV company that will carry out the investment. The JV investment will be implemented subject to the approval of the President of the Office of Competition and Consumer Protection (OCCP), a positive due diligence and the required corporate approvals.
In July 2023. Develia acquired 100% of the shares of the Polish subsidiaries of Nexity, a French property development company. As of the date of acquisition, Nexity had approximately 1,400 units in Poland at various stages of construction and a land bank of approximately 2,100 units. In addition, Nexity had entered into preliminary land acquisition agreements enabling the development of a further approximately 2,300 apartments. Following the acquisition of the Nexity companies, Develia's land bank amounts to approximately 10,000 units.
According to the 2023 targets updated in September this year. Develia aims to sell 2500-2600 units and hand over 2500-2600 units. Develia also aims to launch and start construction of 2700-2900 units.
Following the finalisation of the sale of the Wola Retro office building in Warsaw for EUR 69.3 million in April, Develia is continuing negotiations for the sale of Arkady Wrocławskie. The company's goal is to sign the preliminary sales agreement for this building by the end of December 2023 and the promised agreement by 29 January 2025. It is estimated that the shopping centre's operations will be completed in the first half of 2024.
The group's revenue for Q1-Q3 2023 was PLN 786.2 million compared to PLN 320.3 million a year earlier. The group's net profit was PLN 124.7 million compared to PLN 49.5 million in the same period last year.
Gross profit on sales from development activities for the first nine months of 2023 was PLN 224.1 million on revenue of PLN 759.3 million. Gross profit on sales from rental services amounted to PLN 12.0 million on revenues of PLN 25.1 million.
"Thanks to our very good financial situation, we are in a comfortable market position to further increase the scale of our operations. We have adequate resources to engage in multi-phase projects and we are also ready to take advantage of emerging market opportunities," says Paweł Ruszczak, vice-president of Develia.
At the end of September 2023. Develia had PLN 746.3 million in cash and short-term financial activities compared to PLN 481.6 million as at 31 December 2022. At the end of Q3 2023, financial liabilities amounted to PLN 927.2 million compared to PLN 679.9 million at the end of 2022.