Capital Group Murapol delivered 1,720 units to retail customers in the three quarters of 2024, compared to 2,234 handed over in the corresponding period in 2023 (-23% YoY), which was due to the project implementation schedule. The revenue from sales were PLN 786.3 million (-18.7% YoY) and the net profit of the group reached PLN 131.8 million (-30.6% YoY).
Despite the observed market uncertainty, in the three quarters of this year, the Company signed 2,084 developer and preliminary agreements with clients (+0.4% YoY). The total net sale to retail clients (developer agreements, preliminary and paid reservation agreements, after elimination of withdrawals) amounted to 2,234 units (in comparison to 2,229 units the year before). The most flats were sold in Lodz – 479, Poznan – 419, and Gdansk – 320. Apartments priced below PLN 600k constituted nearly 90% of the Group’s total sales.
In the nine months of 2024, Murapol added 3,194 units (+22.1% YoY) in 11 cities to its portfolio, including in a new market – Lublin. By the end of 3Q, Murapol’s offer comprised of 4,736 units (+48.8% YoY) and was one of the largest in the Polish market. The Murapol Group had an active land bank for the construction of almost 22,000 units in 19 cities.
” Unique, vertically-integrated business model and offer tailored to the needs of a wide range of customers have allowed us to maintain a high market position. Murapol Group’s advantage is, among others, the activity in two complementary segments: the developer segment, which is our core area of operation, and PRS, which complements the Company’s activities. In the developer segment, we have one of the largest and most diverse offers on the market, covering 4,736 units in 14 cities by the end of September, which means a high sales potential for our 28 sales offices. Only in 2024, we introduced new projects in 11 cities in Poland, additionally, we plan to introduce in 2-3 more in the fourth quarter. An attractive, well-diversified offer, adequate to the pace of sales, allows us to look optimistically at the prospects for the next few years. As for PRS, I will add that in November this year, we signed agreements to implement two investments in Gdansk in the design & build formula, comprising a total of 948 units. Our many years of experience, the land acquisition model and developed know-how allow us to effectively renew the land bank as sales progress. The Group currently has an active land bank for the construction of almost 22,000 units,” says Nikodem Iskra, President of the Management Board of Murapol S.A.
At the end of 3Q 2024, there were 8,684 units under construction, resulting to a record-breaking result in the Group’s history. Investments with a total area of approx. 363 thousand sqm were carried out as part of 114 buildings in 15 cities in Poland. The biggest constructions are in Lodz (23.1% of projects underway), Gdansk (17.9%), and Krakow (17.8%). The developer segment accounted for 7,321 units, and the PRS segment, which has been developed since 2021, included 1,363 units.
Financial results and dividends:
After three quarters of 2024, available cash (including escrow accounts) of the Murapol Group amounted to PLN 366.5 million, compared to PLN 235.5 million last year. Net debt was PLN 265.7 million. This year’s dividend of the Murapol Group will amount to PLN 200.3 million, of which nearly PLN 120 million was paid on November 12 as an advance towards the dividend for 2024, after transferring PLN 80.4 million to the shareholders on May 8.
“After three quarters of 2024, the Murapol Group retained a balanced balance sheet and stable financial situation, supported by solid revenues from sales and net profit, which we consistently build towards the levels expected by the market throughout 2024. We maintained a satisfying margin, very similar in large agglomerations and regional cities. The average price of the apartment transferred increased by 10.7%, reaching the level of PLN 396.2 thousand. We also maintained a balanced financing structure, in which 51% of apartment purchases were financed by mortgages, and the remaining 49% were cash purchases. Our business model is based on healthy foundations and has the potential for further development, even in the changing macroeconomic environment, providing steadily increasing results, high cash flows and low engagement of own capital while maintaining an optimal level of profitability ” – says Przemyslaw Kromer, CFO, Member of the Board of Murapol S.A.
Key financial figures (in PLN ‘000):
– Revenue from sales: 786,323 for 1-3Q 2024 vs 966,892 for 1-3Q 2023 (change -18.7%)
– Revenue from retail sales: 685,904 for 1-3Q 2024 vs 803,795 for 1-3Q 2023 (change -14.7%)
– Revenue from PRS sales: 100,419 for 1-3Q 2024 vs 163,097 for 1-3Q 2023 (change -38.4%)
– Gross profit from sales: 235,451 for 1-3Q 2024 vs 310,204 for 1-3Q 2023 (change -24.1%)
– EBIT: 159,551 for 1-3Q 2024 vs 228,999 for 1-3Q 2023 (change -30.3%)
– Net profit: 131,789 for 1-3Q 2024 vs 189,945 for 1-3Q 2023 (change -30.6%)
Prospects for further development:
The Murapol Group has an attractive and highly diversified portfolio of projects in preparation. At the end of the third quarter of this year, it comprised 14,158 units with a total area of approx. 600,000 sqm in 16 cities.
One of the assets of the Murapol Group is the offer located in various regions of the country, supported by strategic management of one of the largest land banks on the market. It allows for the construction of about 22,000 units with a total area of almost 946,000 sqm in 19 Polish cities.
The further development of the Group will be supported by long-term external factors that concern the industry. Even though in 2024, there was a stabilization of demand, caused by waiting for new government programs supporting housing availability, the domestic market continues to struggle with a significant housing deficit. In addition, the growing purchasing power of consumers, a low level of unemployment, and the future prospect of lowering interest rates create favorable conditions for the potential purchase of units.
Source: https://managerplus.pl/grupa-murapol-po-trzech-kwartalach-2024-r-spadek-wynikow-finansowych-przy-rosnacej-ofercie-i-rekordowej-liczbie-budowanych-lokali-82462
