Dom Development posted PLN 63.8m consolidated net profit attributable to shareholders of the parent company in Q2 2023, compared with PLN 94.04m profit a year earlier, the company said.
Operating profit was PLN 73.75m vs. PLN 108.65m profit a year earlier.
Consolidated sales revenue reached PLN 452.51m in Q2 2023 vs. PLN 601.85m a year earlier.
In H1 2023, the company posted PLN 222.56m in consolidated net profit attributable to equity holders of the parent, compared to PLN 235.78m in profit a year earlier, on sales revenue of PLN 1274.52m, compared to PLN 1328.83m a year earlier.
During the first six months of this year, the Group recognised sales revenue of PLN 1,275 million (-4% y-o-y) and generated nearly PLN 223 million in net profit (-6% y-o-y). The lower revenue level is in line with the management’s earlier assumptions and results from a lower number of units handed over to buyers by 8% y/y in the period under discussion, which is closely related to the schedules of ongoing projects. The management expects a high volume of handovers in the second half of the year and the following quarters, according the company report.
In the first half of 2023. Dom Development Group sold 1,845 units, up 18% year-on-year. In Q2 alone, net sales reached 931 units, the best quarterly sales result since the end of 2021, the company stressed.
“We have been consistently increasing sales from quarter to quarter, thanks to which we ended the entire first half of 2023 with an increase of 18% y/y in the number of units sold. In Kraków – a market we entered relatively recently – we sold more than twice as many units as last year, steadily increasing our market share. Looking more broadly at current events, among the factors stimulating demand are the stabilisation of interest rates and the expectation of their first reductions later this year. In addition, the relaxation of creditworthiness assessment conditions by the FSA, combined with steadily rising wages, is increasing the availability of flats in the popular segment for customers. Interest in new flats has also increased due to the announced launch of the government’s ‘2% Safe Credit’ programme,” said Dom Development’s CEO Jarosław Szanajca.
In Dom Development Group, the share of purchases of units financed with a mortgage in the second quarter of this year represented 46% of sales, compared to 40% in the first quarter of this year and 30% in the second quarter of 2022.
“At the same time, we are seeing an increase in demand for higher-standard flats, which are the basis of our offer. This is because investments in this type of property are seen as the best capital protection in a still-high inflationary environment with negative real interest rates on deposits,” the CEO added.
Growing demand, compared to the still limited offer of developers, translated into a further increase in housing prices. In Dom Development Group, the average transaction value (including the price of a flat together with possible finishing, a storage unit and a parking space) in H1 2023 amounted to PLN 715,000 and was 8% higher year-on-year, it was also stated.
On a standalone basis, net profit in H1 2023 was PLN 287.43m compared to PLN 150.34m profit a year earlier.
Dom Development is a residential developer listed on the Warsaw Stock Exchange since 2006. It sold 3,093 units to retail customers in 2022.
Source: Dom Development and ISBnews
