Hepsor (HPR1T) Q2 2024 earnings summary

Executive summary

• Six-month 2024 revenue was €7.4M, down from €20.6M year-over-year; net loss was €1.5M versus a €3.6M profit in 2023.

• Q2 2024 revenue was €5.2M, with a net loss of €0.56M; 46 homes delivered in H1 2024, mainly in Tallinn and Riga.

• Development cycle volatility impacts quarterly results; most 2024 revenue expected in H2 as key projects complete.

• Canadian expansion continued with a third investment in Toronto; 24 active projects across Estonia, Latvia, and Canada.

Financial highlights

• Gross profit for H1 2024 was €0.38M (margin 5.1%), down from €4.8M (23.3%) in 2023.

• Operating loss for H1 2024 was €0.86M (margin -11.5%), compared to €3.7M profit (18.1%) last year.

• Net loss for H1 2024 was €1.53M (margin -20.6%), versus €3.6M profit (17.4%) in 2023.

• Total assets rose to €97.6M (+17% YoY); inventories at €86.1M (88% of assets).

• Loan obligations increased to €62.8M from €46.2M YoY; equity fell 6.7% to €20.7M.

Outlook and guidance

• 2024 forecast: revenue €43.1M, net profit €4.5M, net profit attributable to parent €2.5M.

• Majority of 2024 revenue expected in H2 from Manufaktuuri 7 and Nameja Rezidence completions.

• New Latvian project Zala Jugla (105 homes) to start in 2024; further Canadian investments planned.