Pro Kapital Grupp (PKG1T) Q1 2025 earnings summary

Executive summary

• Revenue surged to €12.5M in Q1 2025 from €3.1M in Q1 2024, driven by apartment handovers in Tallinn's Kalaranna District.

• Net profit reached €1.9M, reversing a €1.7M loss in the prior year period.

• Gross profit rose to €4.2M (34% margin), up from €0.9M (29% margin) year-over-year.

• Operating profit was €2.5M, compared to a €0.7M loss in Q1 2024.

• Cash from operations was €1.3M, versus €1.7M used in Q1 2024.

Financial highlights

• Revenue: €12.5M (+309% YoY); Gross profit: €4.2M (+374% YoY); Net profit: €1.9M (vs. €-1.7M YoY).

• Gross margin improved to 34% (Q1 2024: 29%).

• Operating margin at 20% (Q1 2024: -22%).

• Net margin at 15% (Q1 2024: -56%).

• Net asset value per share: €0.94 (Q1 2024: €0.95).

Outlook and guidance

• Management expects continued strong performance, supported by ongoing apartment handovers and positive macroeconomic sentiment.

• Hotel operations anticipate recovery in demand, especially from MICE and individual travel segments.

• Full market normalization in the Italian real estate sector is expected by end-2025.