Develia (DVL) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was PLN 253.5m, down 37% year-over-year, with net profit at PLN 65.2m, a 23% decrease from Q1 2024; adjusted net profit was PLN 67.2m.

• 951 premises sold (down 8.4% YoY), 524 delivered (down 12% YoY); 3,189 units on offer as of March 31, 2025.

• Acquisition of Bouygues Immobilier Polska for EUR 66.5m to be financed with own funds and a loan, expected to close by June 2025, aligning with growth strategy.

• Group continues geographic diversification and expansion in key Polish cities; no special or non-typical events impacted results.

Financial highlights

• Revenue for Q1 2025 was PLN 253.5m, compared to PLN 401.6m in Q1 2024.

• Net profit for Q1 2025 was PLN 65.2m, down from PLN 84.4m in Q1 2024; adjusted net profit was PLN 67.2m.

• Gross profit: PLN 80.8m (Q1 2025) vs PLN 133.5m (Q1 2024), -39% YoY.

• ROE (adjusted) for Q1 2025 stood at 18.19%.

• Dividend of PLN 265.5m recommended for 2024, with payment scheduled for June 2025.

Outlook and guidance

• 2025 sales target set at 3,100–3,300 units, with delivery target of 2,900–3,100 units and similar number of new units to be added to the offer.

• Long-term strategy aims for 4,500 flats sold annually by 2028 and a 7–8% market share.

• Management expects future results to be highly influenced by macroeconomic conditions, mortgage loan availability, and construction costs.

• No financial forecasts for 2025; focus remains on land acquisition and scaling residential offerings.

• Focus on expanding land bank, M&A, and diversification into PRS and dormitory projects.