Ronson had PLN 9.6 million in net profit, PLN 17.9 million in EBIT in Q1 2022
Ronson Development had a net profit of PLN 9.6 million in Q1 2022 compared to PLN 7.6 million a year earlier, the company said.
The company's total revenues amounted to PLN 112.4 million, compared to PLN 92.8 million in the 1st quarter of 2021. The revenues were influenced by the pace of project implementation: in the 1st quarter of 2022, 283 units were handed over, compared to 185 in the 1st quarter of 2021. The gross margin was 22, 4% vs. 18.7% in Q1 2021. The highly profitable projects Miasto Moje IV with a margin of 25% and Ursus Centralny II with a margin of 24.3% had the greatest impact on the margin level. PLN 9 million compared to PLN 10.4 million in the first quarter of 2021, and the net profit amounted to PLN 9.6 million compared to PLN 7.6 million, according to the results report.
Most of the company's revenues in the first quarter of 2022 came from the Ursus Centralny II a (65%) and Miasto Moje IV (13%) projects. The highest gross profit also came from these projects - Ursus Centralny II a (71%), Miasto Moje IV (14%). In the first quarter of 2022, Ronson Development sold 99 units. The Warsaw-based projects: Ursus Centralny - 43 units and Miasto Moje - 21 units and Viva Jagodno - 14 units - were invariably the sales motors.
President Boaz Haim emphasizes that the sales results were influenced by external factors, such as the war in Ukraine and the rapid increase in interest rates. Due to the increase in interest rates, the creditworthiness of many customers significantly decreased, and the process of obtaining a loan was extended. The unexpected nature of these events - as in the case of the pandemic - also somewhat cooled the enthusiasm of buyers.
"Exactly as at the beginning of the pandemic, we may observe some freezing in the market. Clients need time to adapt to new circumstances, including economic ones, with rising interest rates and limited credit availability. However, we are not slowing down. We plan to start 10 in the near future. 6 of them will be the next stages of the projects implemented so far, and 4 will be a complete novelty. They will cover 1 027 premises in total," said Haim..
Vice-president Andrzej Gutowski added that the current sales results are comparable to those recorded in the fourth quarter of 2021, when the developer sold 111 apartments.
"We, however, will only complete our offer in Q2 and launch the sale of important new investments. These will be EKO Falenty, Osiedle Vola, Nova Królikarnia and the third stage of the Viva Jagodno project in Wrocław. Our sales plan for 2022 remains unchanged," he said.
The land bank is secured for 5,504 premises, with an area of 313,000 m2, it was also stated.
"Our net debt ratio remains at a safe level of 37.2%. In addition, through an alternative financing channel - the SAFE Agreements, Ronson obtained funds of approximately PLN 74 million to further secure its medium-term cash flow" - concluded CFO Yaron Shama.
Ronson is a real estate development company listed on the Warsaw Stock Exchange from 2007 to April 2022. In 2021, it sold 877 units and handed over 1,007.
Source: Ronson and ISBnews