Dom Development posted PLN 460.23m consolidated net profit attributable to shareholders of the parent company in 2023, compared to PLN 410.26m profit a year earlier, the company announced.
Last year, the Group generated a record consolidated net [total] profit of PLN 460.3 million, or PLN 17.94 per share. This is a result of record results from operating activities while at the same time pursuing a conservative policy with regard to cost provisions created. At the same time, the company’s Management Board would like to note that this record result goes hand in hand with a record high potential of sales to be recognised, expressed in contracts concluded with customers for the sale of premises, which will be handed over to them in subsequent accounting periods, the company reported.
Operating profit amounted to PLN 558.19 million compared to PLN 501.54 million profit a year earlier.
The Group’s operating profit in 2023 amounted to PLN 558.2 million, 11.3 per cent higher than a year earlier. The Group’s strong focus on management efficiency has resulted in the operating profit margin increasing to 21.9% in 2023. In the opinion of the company’s management, in the current situation, this level is very satisfactory and confirms the effectiveness of the Group’s business model, the company further reported.
Consolidated sales revenue reached PLN 2,550.31 million in 2023, compared to PLN 2,419.31 million a year earlier.
Last year, despite strong upward pressure on construction costs, but with strong demand, the Group continued its margin maximisation strategy. The strong performance is reflected in the increase in gross profitability, which rose to 32% from 31.2% in 2022, the report also indicated.
In 2023, the Group strongly increased the scale of the investments under construction, as well as the sales volume (which recorded a 26% increase compared to 2022), and its actions contributed to the dynamic development of activity especially in the Krakow and Wroclaw markets, the management board also highlighted.
Dom Development Group ended 2023 with a scale of 6,705 units under construction (up 16% year-on-year), 65% of which have already been sold. In turn, cumulative net sales to be recognised in deferred results (units sold and not sold) included 4,627 units with a total value of PLN 3.28 billion (compared to 4,555 units worth PLN 2.98 billion at the end of 2022, respectively), the company announced.
“Thanks to our hard work, we made optimal use of the market conditions and the opportunities that the past year brought. Sales of flats were at a very high level, while at the same time we supplemented and expanded our offer at a fast pace. In the past year, we started selling flats in 36 projects in 4 agglomerations. At the end of 2023, our Group’s sales offer included 2,400 units, which is 15% more than a year earlier,” commented CEO Jarosław Szanajca.
Last year, Dom Development Group also made significant purchases of land for new investments – mainly in Warsaw, but also in the other cities of its operations.
“The potential of our land bank at the end of 2023 has increased to a record level of almost 20,000 units to be built. Importantly, these are investment lands in attractive locations, often providing the opportunity to build multi-stage developments, which are the domain of Dom Development Group. In Warsaw alone, which is considered to be the most difficult market in terms of the availability of investment plots, we have increased the potential of our land bank by almost a fifth, to the level of almost 11,000 premises,” concluded the CEO.
On a standalone basis, net profit in 2023 amounted to PLN 441.11 million compared to PLN 373.68 million profit a year earlier.
Source: Dom Development and ISBnews
