Calgro M3 (CGR) H2 2024 earnings summary

Executive summary

• FY24 revenue declined 15.7% to R1.285bn, while profit after tax rose to R196.8m from R186.3m; gross margin improved to 27.2% from 23.5%.

• HEPS increased to 189.87 cps from 153.18 cps; EPS rose to 192.01 cps from 153.37 cps, and NAV per share increased 40.6% to R13.37.

• Priorities include rolling out a flexible development pipeline, preserving strong margins, and investing in infrastructure while maintaining disciplined capital allocation.

Financial highlights

• FY24 revenue was R1.285bn versus R1.525bn; profit after tax was R196.8m versus R186.3m.

• Gross profit was R350.0m versus R357.7m; gross margin rose to 27.2% from 23.5%.

• Administrative expenses fell 4.18% to R98.1m from R102.4m; net finance income was R2.5m versus net finance costs of R10.6m.

• Cash generated from operations increased to R149.2m from R89.6m; net cash from operating activities was R91.3m.

Outlook and guidance

• Residential development pipeline is presented at R16bn, with over 23,000 opportunities; memorial parks have over 120,000 burial opportunities.

• Positive future free cash flows are forecast, supported by a mature pipeline; current pipeline is described as requiring minimal capital and no major capital commitments.

• Bankenveld District City is expected to add R18bn to the residential pipeline, increasing it to R34.3bn; development plans include 20,000–30,000 housing units and commercial, retail and industrial space.

• At annual revenue of R1.3bn, the R34.4bn pipeline would take 26 years to roll out; this timeframe is considered impractical, making rollout pace a strategic focus.