Dom Development had a net profit of PLN 37.71 million

by   CIJ News iDesk III
2023-11-16   11:01

Dom Development recorded PLN 37.71 million of consolidated net profit attributed to shareholders of the parent company in Q3. 2023, compared to PLN 23.78 million in profit a year earlier, the company reported.

Operating profit amounted to PLN 44.22 million compared to PLN 27.49 million profit a year earlier.

Consolidated sales revenues amounted to PLN 325.292 million in Q3. 2023 compared to PLN 320.19 million a year earlier.

The revenues of Dom Development Group in the third quarter of this year amounted to PLN 325.9 million, i.e. 2% more than in the same period of 2022, while the net profit generated in the previous quarter amounted to PLN 37.7 million and was 58% higher y/y. The level of recognized revenues in a given period depends mainly on the number of units transferred to buyers, and this on the schedule of investments. In the third quarter of 2023, Dom Development Group customers received the keys to 535 units compared to 420 a year earlier, which means an increase of 27%. Revenues from this (in the financial statements referred to as 'Revenue from the sale of finished products') also increased by 27% y/y and reached PLN 293 million. Comparing the level of total sales revenues in the discussed period, it should be remembered that in the third quarter of 2022 the Group also recorded significant revenues from the sale of land (PLN 63.3 million), the company reported.

In the first quarter 2023, the company had PLN 260.27 million of consolidated net profit attributed to shareholders of the parent company against PLN 259.56 million profit a year earlier, with sales revenues of PLN 1,600.44 million compared with PLN 1,649.01 million a year earlier.

“The financial results generated are in line with the assumptions of the Management Board and are a reflection of the high efficiency of Dom Development Group’s operations. Both in the third quarter alone and cumulatively in the nine months of this year, we recorded an increase in profitability at each level of the results account. We assume that the end of this year will also be successful. We expect a high volume of transferred apartments in this and subsequent quarters, which will positively translate into the level of recognized revenues and profits," commented Vice-President and CFO Leszek Stankiewicz.

At the end of September 2023, Dom Development Group had a total of 4,945 units sold to retail customers that had not yet been handed over, of which 458 were already ready, and in the case of 1,423 construction is to be completed before the end of this year, it is also reported.

As of the end of September 2023, a total of 18,000 units can be built on land purchased or controlled by the Dom Development Group (an increase of 0.9 thousand units compared to the end of 2022).

In the third quarter of this year, Dom Development Group started 9 projects with a total of 934 units, and more cumulatively from the beginning of this year, it started 29 projects covering a total of 3,457 units - in all four agglomerations in which it operates. At the end of September, its offer consisted of 2,141 units available for sale (compared to 2,082 at the end of 2022).

“The Dom Development Group skillfully benefits from the recovery in the housing market, achieving very satisfying sales results. In the third quarter, our sales clearly exceeded 1,000 units, returning to the levels recently recorded in the record-breaking 2021. We have thus strengthened ourselves as a leader among residential developers in Poland. The largest increases in the nine months of this year were recorded in Krakow, where we sold more than twice as many apartments as before, and in Wrocław, where the increase exceeded 90%. The company belonging to our group is also doing very well, and operating in the Tri-City, Euro Styl, which increased the sales of the premises by nearly 40%. On the other hand, on the largest Warsaw market for us, sales have stabilized, which is due to a significant sell-out of our offer. That is why in the third quarter we made significant purchases of land for new investments in attractive locations - mainly in Warsaw, but also in Wrocław and Krakow," pointed out President Jarosław Szanajca.

In the third quarter of this year, cash transactions accounted for 51% of the new sales of Dom Development Group, compared to 54% in the second quarter and 60% in the first quarter of this year. The continued high demand translates into a further increase in housing prices. In Dom Development Group, the average value of the transaction (including the price of the apartment with a possible finish, storage room and parking space) in the third quarter of 2023 amounted to PLN 727 thousand and was 10% higher y/y.

“We are looking to maintain strong demand for housing in the near future. In recent months, it has been boosted by launching the 'Safe Loan 2%' program and interest rate cuts. That is why we successively complement our offer, the basis of which are apartments of a higher standard. Investments in this type of real estate are perceived as capital protection in conditions of still high inflation and negative real interest rates on deposits. Although the percentage of flats financed by credit increased again in the third quarter, in our case still more than half of the sales are cash transactions, which is a confirmation of the continuing high level of investment purchases," concluded Szanajec.

In unit terms, net profit in Q1-Q3 2023 amounted to PLN 296.49 million compared to PLN 286.61 million profit a year earlier.

Source: Dom Development and ISBnews
Photo: Dom Development