Marvipol Development has announced a sharp decrease in its financial performance for the second quarter of 2024, with the company reporting a consolidated net profit of just PLN 1.32 million. This marks a significant decline from the PLN 39.61 million profit recorded in the same period last year.
The company’s operating profit (EBIT) also saw a dramatic drop, amounting to PLN 1.96 million in Q2 2024, compared to PLN 57.55 million in the corresponding quarter of 2023.
Consolidated sales revenues for Q2 2024 were reported at PLN 40.29 million, a steep decrease from the PLN 197.23 million recorded in the same quarter the previous year.
Looking at the first half of 2024, Marvipol Development posted a consolidated net loss of PLN 4.04 million, a stark contrast to the PLN 45.27 million profit achieved in the first half of 2023. Sales revenues for the period were PLN 66 million, down from PLN 268.05 million a year earlier.
The lower revenue in the first half of 2024 was primarily due to a reduced volume of residential and service premises handovers, the company stated. Most of the planned handovers for 2024 are scheduled to begin in the third quarter. This delay in handovers, coupled with a negative operating result from the warehouse segment, contributed to the group’s overall negative operating performance. However, these losses were partially offset by profits from other real estate assets.
Additionally, increased financial costs further impacted the company’s net profitability. The balance of revenues and financial costs stood at -PLN 1.7 million, compared to -PLN 8 million in the first half of 2023.
Despite the downturn, Marvipol Development assured that the group’s liquidity remains stable. The company reported a 13% reduction in net debt, which stood at PLN 147.3 million as of June 30, 2024. This reduction was attributed to positive cash flows from operating activities, driven by progress in the implementation and commercialization of development projects.
In terms of individual performance, Marvipol Development recorded a net profit of PLN 61.35 million for the first half of 2024, significantly higher than the PLN 15.47 million profit achieved in the same period last year.
Source: Marvipol Development and ISBnews
