Magnolia Bostad (MAG) Q2 2024 earnings summary

Executive summary

• Delivered 1,800 residential units in H1 2024, with 1,500 more expected in H2; focus on liquidity and sustainable, high-quality projects.

• Sold four projects totaling 730 residences in Q2, freeing up liquidity and reducing indebtedness.

• Ongoing development aligns with Swedish Green Building Council's silver certification, emphasizing energy efficiency and healthy environments.

• Market conditions improving as inflation nears target and interest rates begin to decline, supporting a gradual recovery in new housing production.

Financial highlights

• H1 2024 net sales: SEK 1,331m (158m YoY); Q2 net sales: SEK 1,279m (101m YoY).

• H1 operating loss: SEK 548m (-286m YoY); Q2 operating loss: SEK 423m (-179m YoY).

• H1 loss after tax: SEK 691m (-422m YoY); Q2 loss after tax: SEK 482m (-246m YoY).

• Property sales contributed SEK 1,289m to H1 revenue; project write-downs and one-off restructuring costs impacted results.

• Cash and cash equivalents at period end: SEK 217m (331m at start of year).

Outlook and guidance

• Expectation of 1,500 additional residential unit deliveries in H2 2024.

• Anticipate further interest rate reductions and increased investor appetite, supporting recovery in housing production.

• Well-positioned with 7,000 building rights with zoning plans in force, mainly in Stockholm region.