Develia (DVL) Q2 2024 earnings summary

Executive summary

• Achieved strong growth in H1 2024 with 1,949 premises sold (up 64.6% YoY) and 1,057 premises delivered (up 59% YoY).

• Net profit for H1 2024 was PLN 198.6m, with revenue reaching PLN 552.3m, driven by higher sales and new investments.

• Launched a new 2024-2028 strategy targeting 4,500 annual flat sales by 2028 and further diversification.

• Entered new JVs in Wrocław and Gdynia, expanded land acquisitions in Gdańsk, and advanced commercial asset disinvestments.

• Dividend of PLN 226.1m (PLN 0.50/share) was paid in two tranches in July and September 2024.

Financial highlights

• H1 2024 sales revenue: PLN 648.7m (up from PLN 419.2m in H1 2023); net profit: PLN 198.6m (H1 2023: PLN 257.9m).

• Gross margin: 22.3% (H1 2024); gross margin for group: 49.5% (H1 2024), down from 52.6% (H1 2023).

• Operating expenses rose to PLN 278.6m, reflecting increased scale and staffing.

• Cash and cash equivalents at period end: PLN 133.1m.

• Net cash from operating activities: PLN -48.0m; net cash from financing: PLN 61.1m.

Outlook and guidance

• 2024 sales target: 2,900–3,100 premises; delivery target: 2,700–2,900 units; new offer target: 3,500–3,700 units.

• Long-term goal to reach 4,500 annual flat sales and 7–8% market share by 2028.

• Management expects to maintain strong liquidity and business financing sources.

• Plans to maintain net debt/equity between 0.20–0.40 and dividend potential above PLN 1.35bn for 2024–2028.

• No circumstances identified that threaten going concern; macroeconomic and geopolitical risks are monitored.