In the first half of 2024, Murapol Capital Group delivered 1295 flats to individual customers, compared to 1592 in the same period in 2023, marking a decrease of 18.7% year on year. The result is aligned with the Group’s expectations and project delivery schedule. The Group plans to intensify the rate of flats delivery in the second half of 2024. This translated into revenues from the sales at PLN 584.1 million, down by 12.8% year on year. The Group’s net profit for the first half of 2024 stood at PLN 102.3 million.
Despite market uncertainties, the Company signed 1438 development and preliminary contracts with customers during the same period, representing a 5.5% year on year increase. The total net sales to individual customers during the period (including development contracts, preliminary contracts and paid reservation contracts, excluding cancellations) totalled 1521 units, maintaining a similar level to the 1539 units recorded in the same period in 2023.
In the first half of the year, Murapol Group added 2285 new flats on offer (+24.8% year on year) in nine cities, including Lublin, a newly entered market. As of the end of H1 2024, Murapol had a total of 4530 units on offer (+46.1% year on year), positioning the Group at the forefront of the Polish market. As of the end of June 2024, the Group had an active land bank for the construction of approximately 21,900 flats in 19 cities.
After last year’s surge in demand, we saw a shift in buying decisions during the first half of 2024 due to public discussions and uncertainty surrounding the government’s #naStart loan program. “With our offer of modern, compact apartments, optimally tailored to current market needs and resistant to market fluctuations, Murapol Group achieved satisfactory sales results during this period, once again increasing the scale of its operations. Our offer is one of the largest and most geographically diversified in Poland, and at the end of the first half, we had 4530 flats in 16 cities, representing growth of over 46% year on year. We also have a rich plot back-up for further investments, including a strong land bank in cities like Warsaw, Lodz, Gdansk, and Poznan. The development potential of Murapol Group is also reinforced by the contracts for land in new locations – Kielce and Czestochowa – signed in the first half of the year. Our planned projects, together with the record number of 8500 units being built, provide a solid business foundation for the future,” commented Nikodem Iskra, President of Murapol S.A.
By the end of the first half, 8,494 flats were under construction, a record achievement in the group’s over 23-year history. The group was running 29 projects in 14 different Polish cities; the most in Lodz (23.6%), Krakow (15.6%), and Poznan (13.3%). 7131 units belonged to the developer segment, while 1363 came from the PRS segment, which has been developing since 2021.
Financial Results and Dividend
After the first six months of 2024, Murapol Group maintained a balanced financial position, supported by solid revenue from sales and net profit levels, which benefited from a lower number of handovers stated in the plans. At the end of Q2 2024, the Group’s cash position was PLN 407.4 million, compared to PLN 234.5 million a year before. The Net Debt to Adjusted EBITDA LTM ratio remained at a secure level of 0.86. In 2024, Murapol Group plans to payout a dividend of around PLN 200 million, with PLN 80.4 million already paid out on 8th May. The average net price of the flats we sold increased by 17.5% compared to H1 2023. In Q2 2024, we maintained a healthy financing structure for our flat purchases, where 54% of purchases were financed by mortgages, and the remaining 46% were cash purchases.
“In the first half, we handed over the keys to 1295 flats, recording satisfying revenue levels and a total net profit of PLN 102 million for the entire Capital Group, which is consistent with our expectations. We plan to significantly speed up the pace of handovers by the end of the year, in line with our construction timetable. Our offer, which is less susceptible to macroeconomic changes, and our vertically integrated business mode, which ensures steady sales levels, high cash flows, low capital commitment, and margin optimization, forms the basis for further business scaling and improving the Group’s financial performance,” says Przemysław Kromer, CFO, Member of the Board of Murapol S.A.
Key Financial Data (in thousand PLN):
Revenue from sales 1H 2024: 584,092
1H 2023: 669,782
Change: -12.8%
Revenue from sales to individual customers 1H 2024: 515,353
1H 2023: 561,077
Change: -8.1%
Revenue from sales to PRS 1H 2024: 68739
1H 2023: 108,705
Change -37.1%
Gross Profit from sales 1H 2024: 177,868
1H 2023: 227,393
Change: -21.8%
Gross Margin from Sales 1H 2024: 30.5%
1H 2023: 34%
Change: -3.5 ppt
EBIT 1H 2024: 123,830
1H 2023: 176,014
Change: -29.6%
EBIT Margin 1H 2024: 21.2%
1H 2023: 26.3%
Change: -5.1 ppt
Net Profit 1H 2024: 102,306
1H 2023: 146,349
Change: -30.1%
Net Profit Margin 1H 2024: 17.5%
1H 2023: 21.9%
Change: -4.4 ppt
The company said that at the end of June it had 14,686 flats in preparation, with a total area of about 622,000 square meters as part of 37 projects in 15 cities, and that the flats priced up to PLN 500,000 accounted for about 73% of the group’s total sales in the first half of 2024. Geographically diversified portfolio and holding one of the largest land banks in the market allow for the construction of 21,900 flats in 19 cities across Poland. Also, long-term factors favoring the industry, such as the structurally high housing deficit, attachment to private property ownership, the growing purchasing power of consumers, the low level of unemployment, and the easing of credit policies by banks will support positive assumptions for Murapol Group.
Source: https://ceo.com.pl/murapol-1295-przekazanych-lokali-w-i-polroczu-2024-zyski-stabilne-mimo-wyzwan-rynkowych-13718
