Lokum Deweloper (LKD) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached PLN 33.1m, up from PLN 21.4m year-over-year, with EPS at PLN 1.84 versus PLN 1.19.

• Revenue dropped sharply to PLN 12.5m from PLN 89.1m year-over-year, mainly due to lower handovers and a one-off land sale in Kraków.

• Operating profit rose to PLN 44.7m from PLN 27.5m, driven by a PLN 47.3m gain from the land sale.

• Cash position increased to PLN 146.3m at quarter-end, supported by a PLN 100m bond issue.

• Equity stood at PLN 564.7m, with a stable capital structure and no changes in share capital.

Financial highlights

• Net profit: PLN 33.1m in Q1 2025 vs. PLN 21.4m in Q1 2024.

• Revenue: PLN 12.5m in Q1 2025 vs. PLN 89.1m in Q1 2024.

• Operating profit: PLN 44.7m in Q1 2025 vs. PLN 27.5m in Q1 2024.

• Cash flow from operations: PLN -31.5m in Q1 2025 vs. PLN -30.3m in Q1 2024.

• Net cash from financing: PLN 98.0m in Q1 2025, mainly from bond issuance.

Outlook and guidance

• Results in coming quarters will depend on mortgage availability, government housing policy, and macroeconomic trends.

• Lower interest rates and potential further cuts may stimulate demand, but inflation and high costs remain risks.

• Regulatory changes and new EU energy standards may increase investment costs.

• The company continues to focus on large, high-standard residential projects and land bank expansion.