Dom Development reports an increase in profit by over 150% y-o-y and counts on higher housing prices
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Dom Development, one of the leading developers operating on the Polish market, recorded a net profit of over PLN 55m in Q3 2019, i.e. over 150% more than in the previous year. So far this year, the company has already provided its clients with approx. 2,500 units to clients, which makes it possible to look optimistically at the implementation of the annual forecast. The company expects an increase in transactional prices of its flats next year.
Significant increase in profit
Dom Development posted consolidated net profit of PLN 55.02m in Q3 2019, compared to PLN 21.9m profit a year earlier, the company has announced. This means an increase of 151% y-o-y. Consolidated revenue from sales was PLN 387.65m compared to PLN 265.79 m in Q3 2018, which in turn means an increase by 46% y-o-y.
In Q1-Q3 2019, the company posted consolidated net profit of PLN 170.34m attributable to shareholders of the parent company (PLN 98.21m profit in Q1-Q3 2019), with sales revenue of PLN 1154.49m (PLN 904.98m a year earlier).
2,500 of flats handed over
For the whole of 2019, the developer expects a better net result than in the previous year, but the growth will not be as strong as for the first three quarters of this year. In Q3 2019, the company delivered 839 units to customers, and from the beginning of the year to the end of September a total of approximately 2,500 units. Since the forecast for the whole year is 3,500 units completed, it is easy to calculate that in the last three months of 2019, the company will deliver another 1,000 units. This will mean that the number of keys handed over will be fairly evenly distributed throughout the year.
Previously, there was an accumulation of transfers in the last quarter, which posed a risk to the quality of transfers and financial results. Currently, the company can operate with much greater peace of mind, said Janusz Zalewski, vice-president and financial director of Dom Development. According to him, the location of transfers this year will be distributed as follows: about 2,800 units will go to customers in Warsaw, 500 in the Tri-City and about 200 to the Wroclaw market.
On average PLN 500,000 per flat
In the Q3 of the current year. 63% of the flats offered by Dom Development sold for over PLN 450,000 each. Mainly due to Warsaw, where every third unit bought from the company cost over PLN 650,000. In 2020, the company expects the transaction prices of its flats to increase to an average of over PLN 500,000 per unit, which is a very good forecast for its future financial results.