Arco Vara (ARC1T) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales revenue reached €943k, up 3.7x year-over-year; H1 2024 revenue was €1.93m, up 3.8x year-over-year.

• Net loss for Q2 2024 was €339k; H1 2024 net loss totaled €688k, both slightly higher than prior year.

• 3 apartments sold in Q2; 7 apartments sold in H1; 44 apartments and 1 commercial space remain in stock.

• Key projects progressed: Kodulahe Rannakalda sales ongoing, Soodi 6 pre-sales started, Botanica Lozen in Bulgaria at 40% sold.

• CEO transition announced: Miko-Ove Niinemäe resigns effective August 31, 2024; Kristina Mustonen to become CEO from September.

Financial highlights

• Q2 2024 EBIT loss was €103k; H1 2024 EBIT loss was €311k.

• Cash and cash equivalents at June 30, 2024: €1.5m; net loans increased to €14.2m.

• Equity at period end: €19.7m; total assets: €39.0m.

• Operating cash flow for H1 2024 was negative €6.1m; financing cash flow positive €6.1m.

• EPS for H1 2024: -€0.07; Q2 2024: -€0.03.

Outlook and guidance

• 2024 revenue forecast: €17.2m; profit forecast: -€0.2m.

• 2025 revenue forecast: €18.3m; profit forecast: €0.7m.

• Construction of next Kodulahe stage expected to start end of 2024; Lammi 6 (175 homes) to begin in about two years.