Atal S.A. (1AT) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 30% year-over-year to PLN 701.3 million, with net profit up 7% to PLN 154.3 million.

• 1,289 flats sold and 1,215 handed over in H1 2024, with 6,615 flats currently offered across eight Polish markets.

• 40 projects (over 9,000 flats) under construction and 41 more planned, totaling over 20,000 flats in the pipeline.

• Land bank supports 622,000 m² of future projects, with land purchases in H1 2024 totaling PLN 175 million.

• The Group operates in residential development and commercial property rental across major Polish cities.

Financial highlights

• Gross margin on sales was 35.3% in H1 2024, up from 28.6% in H1 2023; net margin declined to 22.0% from 26.9%.

• Operating profit reached PLN 173.1 million, with EPS at PLN 3.74 vs. PLN 3.57 year-over-year.

• Cash at end of H1 2024 was PLN 533 million, down from year-end 2023 due to increased construction activity.

• Net debt ratio improved to -0.04 as of June 30, 2024.

• Total assets grew to PLN 3.8 billion, while equity decreased to nearly PLN 1.6 billion, mainly due to dividend payout.

Outlook and guidance

• 2024 handovers are on track, with most planned flats already completed or permitted.

• 2025 handovers expected as planned, targeting over 3,000 flats with 40% contracted by end of June.

• Adjusted 2024 sales target to 2,300–2,500 flats due to lower sales in July and August, but potential for strong Q4.

• Gross margin for the full year expected at 25–27%.

• Pipeline includes 41 planned projects (11,261 flats) and 63 projects (16,703 flats) for 2026 and beyond.