Patriam Invest (PATRIAM) H1 2024 earnings summary

Executive summary

• Operating income rose to SEK 157.8 million for January–June 2024, up from SEK 91.5 million year-over-year, driven by project progress and sales of shares in tenant-owner associations.

• Operating profit declined to SEK 41.4 million from SEK 71.8 million year-over-year, with profit for the period at SEK -18.9 million, impacted by project delays and discounting of unsold apartments.

• The company increased its project portfolio, with ongoing and upcoming developments in attractive Stockholm locations, and expects improved results for the full year 2024.

Financial highlights

• Net sales for the period were SEK 75.2 million, down from SEK 91.5 million year-over-year.

• Operating margin was 26.2% compared to 78.4% year-over-year.

• Equity/assets ratio improved to 27.9% from 25% year-over-year.

• Cash flow from operating activities was SEK 14.0 million, with cash and cash equivalents at SEK 57.3 million at period end.

Outlook and guidance

• Management forecasts a return to profitability for the full year 2024, supported by increased production pace and new project starts.

• Market conditions are expected to improve further as interest rates decline and the Swedish krona strengthens.