2Q23 Results: Marvipol Development Shows Strong Growth in Pre-Sales and Profitability
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2Q23 results summary
The company posted its 2Q23 results on 25th August. Below are our key takeaways.
Volumes:
The company delivered 278 dwellings (-12% y/y) and pre-sold 141 units (+244% y/y) in 2Q23.
Revenues:
Marvipol Development revenues arrived at PLN 197.2m (-4% y/y). The result was driven by higher average dwelling price, which amounted to PLN 709k (+10% y/y) and a drop in deliveries.
Gross margin:
Marvipol Development’s 2Q23 gross margin increased by 12.0pp y/y, to 32.3%, which reflects the impact of an improved sales mix (the developer reported that it had delivered dwellings mainly in the Lazurova Concept and Apartamenty Zielony Natolin projects).
Selling costs and result on JV’s:
SG&A costs reached nearly PLN 9.8m (vs. PLN 11.8m in 2Q22). The SG&A to sales ratio amounted to 5.0%. The profit on JV activity stood at PLN 0.7m (vs. PLN 3.8m the previous year).
EBITDA:
EBITDA came in at PLN 59.9m, +64% y/y, which resulted in an EBITDA margin of 30.4%, up by 12.6pp y/y.
Net profit:
Net profit arrived at PLN 39.6m, (+59% y/y; we note that the company reported a PLN -7.9m net financial loss, vs. PLN -6.6m in 2Q22).
OCF:
Marvipol Development posted OCF of PLN 41.3m (vs. PLN -8.3m in 2Q22) derived mainly from the positive impact of the improvement in financial results.
Net debt:
Net Debt/ LTM EBITDA came in at 1.7x and net debt/BV arrived at 0.3x (-0.2x y/y and -0.1x q/q). At the end of 2Q23 Marvipol Development held PLN 189.6m in cash and cash equivalents.
