– 494 units sold in H1 2023 (vs. 213 in H1 2022) – 132% more year-on-year
– Handover of 385 units in H1 2023 (vs. 360 in H1 2022)
– The Company’s revenue from the sale of residential and commercial units amounted to PLN 176.4 million in H1 2023
– Operating profit in H1 2023 was PLN 34.4 million (vs. PLN 17.6 million in H1 2022)
– Net profit amounted to PLN 26.5 million in H1 2023 (vs. PLN 9.8 million in H1 2022)
– 9 of the Company’s projects are under development – 5 projects have been completed and are on sale (as at 30.06.2023 – 895 units on offer for sale)
– The Company has a secured land bank for activity in the coming years
RONSON Development has published its financial results for the first half of 2023. The Company’s total revenues from the sale of residential and commercial units amounted to PLN 176.4 million. Revenues were influenced by the rhythm of project delivery, with 385 units handed over in the first half of the year. The Company’s operating profit in the first half of 2023 amounted to PLN 34.4 million, compared to PLN 17.6 million in the first half of 2022. Net profit amounted to PLN 26.5 million, compared to PLN 9.8 million in the first half of 2022.
RONSON Development sold a total of 494 units in the first half of the year. The drivers of sales were the projects City My (133), Ursus Central 129), Viva Jagodno (71) and Grunwald Między Drzewami (48). Currently, the developer’s sales offer includes 895 units. The Company is preparing a further 16 residential developments and 6 PRS projects. The Company’s land bank is secured for activity in the coming years.
– The powerful increase in residential sales in the first half of this year – in the case of our Company by 132% year-on-year – is the result of a number of factors. Certainly, the change in the KNF’s recommendation concerning the calculation of creditworthiness contributed to it, but also the launch of the 2% Safe Credit programme, which strongly mobilised those customers who had been postponing their purchase decision for a long time and returned to it in fear of the developer offer being sold out or further price increases. I think that the base effect also played a role, because only a year ago we were facing a buying slump. We acted strategically then and introduced the largest sales offer in our history, so we were well prepared for the current strong market rebound,” says Boaz Haim, CEO of RONSON Development. And he adds – We are also prepared to respond to the demand reported by our customers in the second half of this year. In the second half of the year, we are planning to launch two new projects – the fifth stage of the Nowe Warzymice project in Szczecin, where 60 flats will be built, and a brand new project in the Lower Mokotów district of Warsaw – Zielono Mi, where 92 flats will be built.
Andrzej Gutowski, vice-president, sales director of RONSON Development admits that the 2% Safe Credit programme has strongly stimulated customers who have been postponing their decision to about buying a flat. As he adds – We expect a second wave of customers to arrive in late August/early September, when the vast majority of banks are likely to join the programme. We expect strong sales in the second half of the year, for which we will of course be prepared. At the moment, our sales pool is close to 900 units, and we are planning further project launches.
Vice-president Gutowski emphasises that the launch of the 2% Safe Credit programme is another, only ad hoc solution that stimulates the market in an uneven way, as it is only on the demand side. – For years, the development community has been calling for the need for changes on the supply side – increasing the availability of plots in cities, improving infrastructure or shortening administrative procedures.
As Yaron Shama, CFO of RONSON Development, comments, “In all its projects, RONSON continues to be primarily focused on profitability, with strong cash flow opportunities supported by our robust financial risk management practices to anticipate and deliver our products to different customer segments. He adds, -Although uncertainty in the macroeconomic and operating environment persists, I am confident that RONSON’s strong financial performance, together with our business model and resilient portfolio, positions the Group well to continue to deliver the best quality projects, generate the required cash flow for future operations, and create sustainable value for our shareholders.”
