Pro Kapital Grupp (PKG1T) Q3 2024 earnings summary

Executive summary

• Revenue for nine months of 2024 was €10.6m, down from €20.0m year-over-year; Q3 revenue was €3.7m, slightly below €3.9m in Q3 2023.

• Gross profit for nine months fell 52% to €2.9m; Q3 gross profit was €433k, down from €1.5m in Q3 2023.

• Net loss for nine months widened to €4.1m from €1.0m loss year-over-year; Q3 net loss was €1.0m versus €732k loss in Q3 2023.

• Cash used in operating activities was €9.9m for nine months, compared to €9.5m generated in the prior year.

• Major real estate projects in Tallinn, Riga, and Vilnius advanced, with strong presales in Kalaranna and Uus-Kindrali; hotel operations in Germany exceeded expectations.

Financial highlights

• Revenue for nine months: €10.6m (2023: €20.0m); Q3: €3.7m (2023: €3.9m).

• Gross margin for nine months: 27% (2023: 30%); Q3: 12% (2023: 40%).

• Operating result for nine months: -€1.7m (2023: €1.7m); Q3: -€872k (2023: €167k).

• Net result for nine months: -€4.1m (2023: -€1.0m); Q3: -€1.0m (2023: -€732k).

• EPS for nine months: -€0.07 (2023: -€0.02); Q3: -€0.02 (2023: -€0.01).

Outlook and guidance

• First units of Kalaranna District’s final stage expected to be delivered by end of 2024; remaining units by Q1 2025.

• Uus-Kindrali project in Tallinn progressing on schedule, with 44% presales; completion expected end of 2025.

• Šaltinių Namai Attico’s final stage in Vilnius to complete in Q2 2025; Naugarduko project to start construction in Q2 2025.

• Hotel operations expected to close 2024 with record-breaking Gross Operating Profit if current trends persist.