Lokum Deweloper recorded PLN 3.95 million of consolidated net loss attributable to shareholders of the parent company in Q1 2021 against PLN 20.6 million of profit a year earlier, the company said in its report.
The operating loss was PLN 2.17m, compared to PLN 29.52m profit a year earlier. Consolidated sales revenues reached PLN 12.97 million in Q1 2021 compared to PLN 97.74 million a year earlier.
In the first quarter of 2021, the capital group recorded a gradual increase in sales to the levels observed before the announcement of the epidemic. In the second half of 2021, along with the further expansion of the offer, sales of apartments should continue to increase compared to the first half of the year, but the pandemic may have an impact on results of future periods “- according to the financial report for the first quarter of 2021.
At present, the Group cannot unequivocally assess to what extent the COVID-19 epidemic will affect its operations, including to what extent it will affect revenues and results from operations in the coming years. The improvement in the Group’s financial condition will depend, inter alia, on the rate at which the economy returns to its pre-pandemic state, the demand for housing and the financial condition of potential customers.
“In Q1, we identified 20 units from investments completed mainly in 2020, which is reflected in the financial results for this period. According to the investment implementation schedule for this year, most of the deliveries are scheduled for Q2 and Q4. We have recently completed the construction of two stages of Krakow investments Lokum Vista and Lokum Siesta and we are currently waiting for obtaining permits for their use. We will recognize apartments from these completed projects in the results of the next quarters of 2021 “- said President Bartosz Kuźniar, quoted.
At the end of the quarter, 959 units were on offer (compared to 700 units in the corresponding period of the previous year), and 1,579 units were under construction (compared to 1,000 units in Q1 2020). The Lokum Deweloper Group’s land bank with a total area of approximately 51 ha allows for the construction of over 11,000 sqm premises.
“In the first quarter of this year, we supplemented the offer, started new construction projects, and we are preparing new projects in Wrocław and Kraków. We strive for the Group’s constant development and maintaining an attractive and diversified range of apartments that will allow us to achieve satisfactory sales and financial results,” Kuźniar added.
On a standalone basis, the net profit in Q1 2021 amounted to PLN 0.9 million.
Lokum Deweloper is a residential developer from Wrocław, also operating on the Kraków market. In 2015, the company made its debut on the WSE main market. In 2020, it sold 463 apartments.
Source: Lokum and ISBnews
