Ronson Development recorded PLN 6.82 million of consolidated net profit attributable to shareholders of the parent company in Q3 2021 compared to a loss of PLN 3.14 million a year earlier, the company said in its report.
The operating profit amounted to PLN 11.98 million compared to PLN 1.1 million profit a year earlier.
Consolidated sales revenues reached PLN 102.49 million in Q3 2021 compared to PLN 68.84 million a year earlier.
In Q1-Q3 2021, the company had PLN 28.77 million of consolidated net profit attributable to the shareholders of the parent company compared to PLN 37.5 million of profit a year earlier, with sales revenues of PLN 349.4 million compared to 321 PLN 93 million a year earlier.
The company’s total revenues amounted to PLN 349.4 million compared to PLN 322 million in Q1-Q3 2020. Revenues are influenced by the rhythm of project implementation: in Q1-Q3 2021, 625 apartments were delivered, compared to 797 in Q1-Q3 2020. 2020. Gross margin was 18% vs 23.4% in Q1-Q3 2020. It should be noted that the gross margin in 2020 was influenced by the highly profitable City Link III project (margin of 38.3%), which additionally affects the operating profit and the dynamics of the net profit y / y. The operating profit in Q1-Q3 2021 amounted to PLN 41.6 million compared to PLN 51.8 million the year before; net profit amounted to PLN 28.7 million compared to 37 PLN, 5 million in Q1-Q3 2020, according to the company report.
In Q1-Q3 2021, Ronson Development sold 766 units, ie 16% more y / y. The main sales drivers at that time were the Ursus Centralny (226 units), Miasto Moje (185), Nowe Warzymice (106), Viva Jagodno (67) and Panoramika (46) projects.
“The demand situation on the market remains favorable and we are trying to have an interesting offer for our clients – regardless of whether they are looking for premises for their own needs or by investing in real estate they want to secure the value of their savings. In Q1-Q3 2021 we started 5 projects ( including new projects and new stages of projects in progress) comprising 720 units, and another 3 units with 361 units will be launched by the end of the year Given the demanding situation in terms of operating costs, we carefully monitor the market and adjust the pace of sales to the current and expected market conditions. The level of sales and financial results in Q1-Q3 this year are in line with our budget assumptions and correspond to the size of our offer. During the reporting period, we expanded our land bank by 3 new plots and secured additional 5 plots with preliminary contracts, and we recently signed contracts ( final and preliminary) for the purchase of another 4 real estate Nowadays, it is important to have a large land bank and a strong financial position – in this respect, Ronson is well prepared to further strengthen its market position,” said CEO Boaz Haim.
As at the end of September 2021, Ronson had sold 492 units in ongoing projects worth PLN 190 million, which are planned to be completed by the end of 2021, and 166 units sold in projects worth PLN 101.2 million, which is may have an impact on the profit and loss account in 2021, the company stated.
“Since the beginning of the year, due to the high demand for new apartments, our offer has been gradually decreasing. At the end of September 2021, we managed to rebuild it to the level of over 600 units. By the end of this year, we intend to introduce the next stage of ongoing projects Ursus Centralny. and Viva Jagodno and a completely new project in Dolny Mokotów.In the beginning of 2022 we will start a new project in Wola and we will debut on the market with a new product – mini houses with gardens in Falenty near Warsaw. It turned out that in many industries, everyday presence in the office is no longer a necessity. Therefore, we believe that compact houses will be an interesting alternative for some clients to buying an apartment in the center of Warsaw.At the end of September 2021, we had a secured land bank for 3,772 apartments and we are preparing new interesting projects to be launched in the coming quarters “- added the vice-president, sales director Andrzej Gutowski.
“Despite the lower number of deliveries, due to the higher average selling price of flats in the reporting period, we recorded 9% higher revenues y / y. The comparison of the gross margin y / y remains under pressure from the high recognition base of the very good City Link III project last year. In Q1-Q3 2021, we achieved a gross margin of 18% and – importantly – it consists of several projects. The operating and net profit follow a lower gross margin and amounted to PLN 41.6 million and PLN 28.7 million, respectively. very safe level of the net debt to equity ratio – at the end of September, the ratio, excluding cash in escrow accounts, was 12.3% and 10.3%, calculated in accordance with bond covenants. our current and planned business activities,” summed up CFO Yaron Shama.
On a standalone basis, the net profit in Q1-Q3 2021 was PLN 28.98 million compared to PLN 38.26 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.
On a standalone basis, the net profit in Q1-Q3 2021 was PLN 28.98 million compared to PLN 38.26 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
