Develia (DVL) Q3 2024 earnings summary

Executive summary

• Achieved record sales of 2,700 premises in Q3 2024, up 31% year-over-year, and delivered 1,797 premises, a 38% increase from Q3 2023.

• Consolidated net profit reached PLN 215.6m, up from PLN 124.7m in Q3 2023; adjusted net profit was PLN 189.3m.

• Launched a new strategy for 2024-2028, targeting 4,500 annual flat sales and a 7-8% market share by 2028.

• Focus on diversification and expansion in major Polish cities, with a robust land bank and pipeline of projects.

• Entered joint ventures for student and residential projects, and advanced commercial asset disinvestments.

Financial highlights

• Sales revenue for Q3 2024 was PLN 1,037.6m, with a gross margin on sales of 32.8%.

• Net profit for Q3 2024 was PLN 215.6m, with adjusted net profit at PLN 189.3m.

• Basic EPS: PLN 0.48, up from PLN 0.28 year-over-year.

• Cash and cash equivalents at period end: PLN 311.6m, down from PLN 499.0m at year-end 2023.

• ROE (adjusted net profit) reached 18.2% in Q3 2024.

Outlook and guidance

• 2024 sales target set at 2,900-3,100 units, with delivery target of 2,700-2,900 units and 3,500-3,700 new units to be added to the offer.

• Long-term strategy aims for 4,500 annual flat sales and a land bank for 15,800 premises by 2028.

• Dividend potential above PLN 1,350m for 2024-2028, with a payout ratio in line with industry benchmarks.

• Group performance in the next quarter will be influenced by macroeconomic factors, mortgage availability, and EUR exchange rates.

• Long-term performance depends on land acquisition strategy, construction costs, and access to bond financing.