Hepsor (HPR1T) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue reached €8.2 million, up from €2.3 million in Q1 2024, with a net loss of €0.1 million versus €1.0 million loss a year earlier.

• 42 new homes delivered in Q1 2025, compared to 12 in Q1 2024; customer interest in developments remained stable.

• Management proposed a €1.0 million dividend for 2025, yielding 6.9% as of 31.03.2025.

• After Q1, a 50% stake in Hepsor SOF OÜ was sold, expected to generate €3.7 million profit, with €1.9 million to be realized in later 2025 quarters.

Financial highlights

• Revenue increased 261% year-over-year to €8.2 million; 34.4% of revenue earned in Latvia.

• Gross profit was €1.0 million (Q1 2024: €0.04 million); gross margin improved to 12.4% from 1.6%.

• Operating profit was €0.3 million (Q1 2024: -€0.6 million); net loss narrowed to €0.1 million.

• EBITDA was €0.4 million, up from -€0.5 million in Q1 2024.

• Earnings per share were -€0.06 (Q1 2024: -€0.23).

Outlook and guidance

• Four new residential projects planned for 2025: Manufaktuuri 12 (Tallinn, 49 homes), Eiženijas 18 (Riga, 54 homes), Zala Jugla I (Riga, 70 homes), Dzelzavas 74C (Riga, 103 homes).

• Construction of Ganibu Dambis commercial building in Latvia to start in 2025.

• Improving macroeconomic environment and falling interest rates support project launches.