Ronson Development recorded PLN 14.34 million of consolidated net profit attributable to shareholders of the parent company in Q2 2021 compared to PLN 11.25 million of profit a year earlier, the company said in its report.
The operating profit amounted to PLN 19.3 million versus PLN 12.49 million profit a year earlier.
Consolidated sales revenues reached PLN 154.11 million in Q2 2021 compared to PLN 85.87 million a year earlier.
In Q1-Q2 2021, the company had PLN 21.95 million of consolidated net profit attributable to shareholders of the parent company compared to PLN 40.64 million of profit a year earlier, with sales revenues of PLN 246.91 million compared to PLN 253,1 million a year earlier.
Revenues from the sale of residential premises and the sale of services decreased by PLN 6.2 million (2.4%) from PLN 253.1 million in the six-month period ended June 30, 2020 to PLN 246.9 million in the six-month period ended 30 June 2021, which is essentially due to the delivery of fewer units to customers – a decrease from 600 units in the six-month period ended June 30, 2020 compared to 445 units in the six-month period ended June 30, 2021 (for projects with 100% ownership by the company), according to the company report.
The cost of selling residential units increased by PLN 17.1 million (9.2%) from PLN 186.3 million in the six-month period ended June 30, 2020 to PLN 203.3 million in the six-month period ended June 30, 2021. The increase is due to the variety of projects delivered to clients.
The gross margin on the sale of residential premises for the six-month period was 17.7% compared to 26.3% in the six-month period ended June 30, 2020. The change in gross margin is due to the variety of projects delivered to clients of varying profitability, it also reported.
In the six-month period ended June 30, 2021, Ursus Centralny Ia and Vitalia III were projects with a significant impact on the Group’s revenues and profitability (PLN 9.1 million and PLN 8.3 million, respectively, in the gross profit, which translates into the gross margin, respectively) in the amount of 17.9% and 18.1%).
Sales and marketing costs decreased by PLN 0.4 million (13.5%) from PLN 2.9 million, which was mainly due to more effective management of marketing costs and a shorter sales process caused by a very high demand for premises. In the reporting period, the company adopted a new marketing strategy adapted to the new market situation, which contributed significantly to the increase in sales by 178 units to 604 units in the six-month period ended June 30, 2021 compared to 426 units a year earlier.
“Despite the lower number of handovers in the first half of 2021, we recorded a good level of revenues, only 2% lower than in the first half of 2020. The comparability of the gross margin y / y is influenced by the high recognition base of the very good City Link III project last year. In the first half of 2021, we achieved 17.7% of the gross margin and, which is positive for the reporting period, the gross margin comes from several significant projects. The operating and net profit follow a lower gross margin and amounted to PLN 29.7 million and PLN 21.9 million, respectively. We maintain a safe level of the net debt to equity ratio – at the end of June, the ratio, excluding cash in escrow accounts, was 24.4% and 14.6% calculated in accordance with bond covenants. In the first half of the year, for the second time in the history of Ronson, we obtained PLN 100 million from one bond issue (the demand exceeded our needs and reached 125 million). million PLN). Thanks to this issue, we secured our medium-term financing needs, including the redemption and redemption of a series of bonds maturing this year and our further development plans,” concluded CFO Yaron Shama, quoted in the results release.
On a standalone basis, the net profit in Q1-Q2 2021 amounted to PLN 22.44 million compared to PLN 40.76 million in profit a year earlier.
Ronson is a real estate development company listed on the Warsaw Stock Exchange since 2007. In 2020, it sold 918 units and handed over 966 units. Its consolidated revenues amounted to PLN 401 million in 2020.
Source: Ronson and ISBnews
Photo: Tamka Wizualizacja – Ronson Development
