Arco Vara AS reported €5.1m in sales for the first quarter of 2016, up 15 percent y-o-y. The increase was attributed to a growth in the construction group’s development division, which posted €4.4m in revenue in the first three months of the year, up from €3.8m in Q1 2015. Meanwhile, the company’s service division reported a 4-percent y-o-y decrease for the quarter, with revenues coming in at €0.7m. The Q1 operating profit amounted to €1.2m, while net profit was €1.1m.
“Similarly to the revenue growth the operating profit of the first quarter came from the development division. Service division ended the first quarter with an operating loss of €73,000, due to the continuing unprofitability of the Estonian brokerage unit,” the company said in a statement.
Arco Vara sold 68 apartments and two commercial spaces were sold in Q1. The company is expecting to bring in €16m for the first stage of its Kodulahe residential project in Tallinn and approximately €7m for its Iztok Parkside project in Sofia.
“The goal of the management is to double the activity volumes and profit of Arco Vara by the end of 2018 at the latest. Therefore, the results of the first quarter of 2016 are an example of a quarter which, according to the goal of the management, should be a relatively typical quarterly result for Arco Vara starting from 2018,” the company said.
