Hepsor (HPR1T) Q3 2024 earnings summary

Executive summary

• Sales revenue for Q3 2024 reached €20.4M, with net profit at €2.7M; nine-month revenue totaled €27.9M and net profit €1.2M.

• Apartment sales and profitability declined year-over-year due to market weakness in Estonia and Latvia, leading to a downward revision of 2024 forecasts.

• Expansion continued in Canada with two new Toronto projects, now totaling five Canadian developments and plans for 3,000 rental units.

• 142 homes handed over in the first nine months, with 189 under construction as of September 2024.

Financial highlights

• Q3 2024 revenue: €20.4M (Q3 2023: €15.5M); nine-month revenue: €27.9M (9M 2023: €36.0M).

• Q3 2024 net profit: €2.7M (Q3 2023: €1.2M); nine-month net profit: €1.2M (9M 2023: €4.8M).

• Gross profit margin for Q3: 18.9% (Q3 2023: 13.2%); nine-month margin: 15.2% (9M 2023: 18.9%).

• Net profit margin for Q3: 13.2%; nine months: 4.2%.

• Earnings per share for nine months: -€0.04 (9M 2023: €0.59).

Outlook and guidance

• 2024 revenue forecast revised down to €37.3M (from €43.1M), with 189 apartments expected to be sold (down from 225).

• Net profit forecast for 2024 reduced to €2.2M (from €4.5M); net profit attributable to parent: €0.2M (from €2.5M).

• Management will suspend regular financial forecasts from 2025 due to market volatility.