Warimpex (WXF) Q2 2024 earnings summary

Executive summary

• First half of 2024 marked by challenging market conditions, including high interest rates, elevated prices, and lower property valuations; ECB rate cut in June 2024 provided some relief.

• Operational performance remained stable, with development projects in Krakow and Darmstadt progressing as planned.

• Focus remains on office developments with sustainability certifications and EU Taxonomy alignment.

Financial highlights

• Total revenues decreased by 1% year-over-year to €26.0 million; gross income from revenues fell 5% to €16.5 million.

• EBITDA dropped 24% to €8.6 million, mainly due to lower revenues and impairments on receivables.

• EBIT declined from €6.4 million to -€2.1 million, impacted by negative remeasurement of investment properties.

• Financial result worsened to -€6.6 million from -€5.2 million, reflecting lack of FX gains.

• Net loss for the period was €8.8 million, compared to a profit of €0.2 million in the prior year.

Outlook and guidance

• Market conditions expected to remain challenging due to the Ukraine conflict and low economic growth.

• Positive operational development anticipated for 2024; focus on construction preparations and sustainability certifications.

• Interest rate risk considered moderate, with only 20% of debt at variable rates.