Dom Development (DOM) Q2 2024 earnings summary

Executive summary

• Net units sold rose 6% year-over-year to 1,954, consolidating market leadership in Polish residential development.

• Net profit for H1 2024 reached PLN 231 million, up 4% year-over-year, with a gross margin of 32%.

• Revenue for H1 2024 reached PLN 1,370 million, up 7% year-over-year, with record 8,371 units under construction and 60% already sold.

• Strong balance sheet with PLN 622 million in cash and no bank debt; negative gearing at (6.7)%.

• 25 new projects launched in H1 2024, totaling 2,963 units, expected to boost H2 2024 market share.

Financial highlights

• Revenue increased 7% year-over-year to PLN 1,370 million in H1 2024.

• Net profit margin at 16.9% for H1 2024, slightly down from 17.5% a year earlier.

• EPS for H1 2024 was PLN 8.96, up 3% year-over-year.

• Gross margin improved to 32% from 31% in H1 2023.

• Balance sheet exceeded PLN 5 billion for the first time, with inventories up 21% year-over-year.

Outlook and guidance

• High revenue potential with a record pipeline of units sold but not yet handed over.

• 25 projects launched in H1 2024 to support further growth and market share in H2 2024.

• PLN 1.2 billion in available funding ensures operational flexibility for future investments.