Marvipol 3Q23E Results Preview: Robust Gross Margin Growth and Positive Pre-sales Momentum
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3Q23E Results Preview
Marvipol is due to publish its 3Q23E results on 24 November 2023.
Opinion: We expect that despite lower number of delivered dwellings, the developer will report higher 3Q23E results from its core business (residential segment), due to a robust increase in gross margin (+12.5p.p. y/y; gross profit of PLN 28.2m, vs. PLN 21.3m in 3Q22; positive impact of Rotunda Dynasy project).
We predict that the loss from JV’s stood at PLN 1.2m, vs. profit of PLN 5.9m in 3Q22. Hence, reported EBIT may reach PLN 16.7m (-8% y/y). On the other hand, Marvipol Development is expected to report net financial income of PLN 6.2m, due to positive FX differences.
To sum up, we come in at PLN 18.6m in net profit (flattish y/y). We point to a very strong growth in number of pre-sold dwellings in 3Q23E. The group has already informed that it had pre-sold 213 apartments, in comparison with 44 units in 3Q22. The result was driven by a demand recovery and an offer extension, which should be continued in 2H23E
