Lokum Deweloper (LKD) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached PLN 133,884k, slightly down from PLN 135,789k year-over-year, with net profit at PLN 30,924k, up from PLN 24,049k in H1 2023.

• Basic and diluted EPS increased to PLN 1.64 from PLN 1.35 year-over-year.

• Dividend of PLN 2.40 per share (PLN 43,200k total) was approved for 2023 profits, with payment scheduled for August 2024.

• The group continued to focus on residential development projects in Wrocław and Kraków.

Financial highlights

• Operating profit for H1 2024 was PLN 37,428k, nearly flat year-over-year.

• Net cash from operating activities was negative at PLN -23,724k, compared to PLN 49,785k in H1 2023.

• Cash and equivalents at period end were PLN 157,107k, down from PLN 236,048k at year-end 2023.

• Total assets decreased to PLN 731,468k from PLN 839,631k at year-end 2023.

• Equity attributable to shareholders was PLN 527,408k, down from PLN 539,967k at year-end 2023.

Outlook and guidance

• Management notes uncertainty regarding future sales due to the end of the "Bezpieczny Kredyt 2%" program and unclear prospects for the new "Mieszkanie na start" initiative.

• The company is unable to estimate the future impact of macroeconomic and regulatory changes on sales and results.