ACCENTRO (A4Y) Q3 2023 earnings summary

Executive summary

• Revenues for the first nine months of 2023 fell sharply to EUR 56.6 million, down 67.4% year-over-year, mainly due to a weak German residential property market and lower transaction volumes.

• EBIT dropped to EUR -28.0 million from EUR 9.6 million year-over-year, impacted by EUR 14.6 million in impairments on receivables.

• Net income for the period was EUR -48.2 million, with EPS at EUR -1.49, compared to EUR -0.22 in the prior year.

• Rental revenues increased 7.9% to EUR 13.7 million, and net rental income improved to EUR 5.7 million from EUR 0.1 million year-over-year.

• Management does not provide a reliable forecast for the full year due to ongoing market uncertainty but expects significant reductions in revenue and EBIT versus previous guidance.

Financial highlights

• Gross profit for the period was EUR 9.7 million, down from EUR 35.4 million year-over-year.

• Cash and cash equivalents decreased to EUR 31.3 million from EUR 100.8 million at year-end 2022.

• Total assets declined to EUR 756.0 million from EUR 877.1 million at year-end 2022.

• Equity ratio fell to 26.4% from 28.2% at year-end 2022.

• Loan to Value (LTV) increased to 61.0% for both major bonds, up from 57.9% and 51.0% at year-end 2022.

Outlook and guidance

• Management expects consolidated revenues and EBIT for 2023 to be significantly below the previous forecast (EUR 100–120 million revenue; EUR 0–2 million EBIT).

• No reliable quantitative forecast is provided due to persistent weak demand and market unpredictability.