Lokum Deweloper (LKD) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 was PLN 164,278k, down 24% year-over-year; net profit attributable to shareholders was PLN 34,539k, a 20% decrease year-over-year.

• Basic and diluted EPS for the period was PLN 1.92, compared to PLN 2.39 in the prior year period.

• The company distributed a dividend of PLN 2.40 per share in August 2024, totaling PLN 43,200k from 2023 profits.

Financial highlights

• Gross margin for the nine months was 38.4%, slightly up from 37% year-over-year.

• Operating profit was PLN 42,269k, down 29% year-over-year; pre-tax profit was PLN 45,008k, down 16%.

• Net cash from operating activities was negative PLN 34,171k, compared to positive PLN 120,768k a year earlier.

• Cash and equivalents at period end were PLN 97,982k, up from PLN 64,329k at 30 September 2023.

• Total assets at 30 September 2024 were PLN 693,791k, down from PLN 839,631k at year-end 2023.

Outlook and guidance

• Future results depend on macroeconomic conditions, especially mortgage availability and government housing policy.

• Rising land, construction, and labor costs, as well as regulatory changes, may limit demand and margins.

• The company aims to maintain high margins and expand market share through large-scale, high-standard residential projects.