Cemat (CEMAT) H2 2024 earnings summary

Executive summary

• Revenue increased 17% year-over-year to DKK 39.4 million, with rental income up 23% to DKK 20.5 million.

• Consolidated EBITDA rose to DKK 7.3 million, exceeding forecasts, and net profit after tax reached DKK 13.4 million, up from DKK 11.3 million in 2023.

• The "Moje Bielany" residential project progressed, with 77% of flats under agreement and a 15-year retail lease signed; project profit expected at DKK 35-37 million with a 21-22% margin.

• Investment property in Warsaw valued at DKK 191.8 million, up from DKK 171.0 million, driven by higher rental income and legal title acquisition.

• CeMat's 2024-2027 strategy focuses on expanding the rental portfolio, self-storage, and new development phases.

Financial highlights

• Revenue: DKK 39.4 million (2023: DKK 33.6 million); EBITDA: DKK 7.3 million (2023: DKK 4.5 million); EBIT: DKK 7.3 million (2023: DKK 4.4 million).

• Net profit: DKK 13.4 million (2023: DKK 11.3 million); EPS: DKK 0.05 (2023: DKK 0.04).

• Equity ratio: 55.8% (2023: 66.8%); Return on equity: 7.4% (2023: 7.0%).

• Net interest-bearing debt: DKK 17.0 million (2023: DKK 3.4 million); total assets: DKK 342.3 million.

• Cash flow from operations: outflow of DKK 6.6 million, mainly due to development activity.

Outlook and guidance

• 2025 EBITDA expected at DKK 33.3–36 million; development segment to contribute DKK 27–29 million, rental business DKK 6.3–7 million.

• Net profit before property revaluation forecast at DKK 25–27 million.

• Revenue growth in leasing targeted at 6% for 2025, with occupancy projected at 88.6%.

• "Moje Bielany" project to deliver most profit in 2025, with retail space sales recognized in 2026.