Pro Kapital Grupp (PKG1T) Q2 2024 earnings summary

Executive summary

• Revenue for the first six months of 2024 was €6.9M, down from €16.1M year-over-year; Q2 revenue was €3.9M, up from €2.7M in Q2 2023.

• Net loss for H1 2024 was €3.0M, compared to a €0.3M loss in H1 2023; Q2 net loss was €1.3M, improved from €1.6M in Q2 2023.

• Gross profit for H1 2024 decreased 46% to €2.4M; Q2 gross profit rose to €1.5M from €0.8M in Q2 2023.

• Cash used in operating activities was €4.5M in H1 2024, compared to €9.5M generated in H1 2023.

• Net assets per share as of June 30, 2024, stood at €0.93, down from €0.97 a year earlier.

Financial highlights

• H1 2024 revenue: €6.9M (down 57% year-over-year); Q2 2024 revenue: €3.9M (up 43% year-over-year).

• H1 2024 gross margin: 35% (up from 28%); Q2 2024 gross margin: 40% (up from 29%).

• H1 2024 operating loss: €0.86M (vs. €1.5M profit in H1 2023); Q2 2024 operating loss: €0.2M (improved from €0.7M loss in Q2 2023).

• H1 2024 EPS: -€0.05 (vs. -€0.01 in H1 2023); Q2 2024 EPS: -€0.02 (vs. -€0.03 in Q2 2023).

• Total assets as of June 30, 2024: €109.7M; total equity: €52.5M; debt/equity ratio: 1.09.

Outlook and guidance

• Expecting to deliver units from the first two buildings of Kalaranna District by end of 2024, with remaining two by Q1 2025.

• Uus-Kindrali project in Tallinn progressing on schedule, with 34% presales; construction loan secured.

• Šaltinių Namai Attico final stage in Vilnius expected to complete in Q2 2025; 25% of units sold at record prices.

• Naugarduko project in Vilnius to start construction in Q1 2025, pending permit.

• Hotel operations in Germany exceeding budgeted expectations, with focus on MICE activities.