Magnolia Bostad (MAG) Q4 2021 earnings summary

Executive summary

• 2021 net sales were SEK 1,268m, operating profit SEK 260m and net profit SEK 50m; EPS was SEK 1.59.

• The portfolio reached 20,112 estimated building rights and 9,410 homes in production; 1,615 homes started production and 800 were sold during the year.

• The strategy prioritizes expanding self-management, targeting 6,400 completed homes or investment properties valued at at least SEK 14.8bn by end-2026.

Financial highlights

• Net sales fell to SEK 1,268m from SEK 2,358m; gross profit was SEK 151m vs SEK 594m, and profit before tax was SEK 75m vs SEK 725m.

• Operating profit was SEK 260m vs SEK 906m, including investment-property value changes of SEK 128m vs SEK 336m; net profit was SEK 50m vs SEK 688m.

• Realized value growth on investment properties sold was SEK 23m vs SEK 181m.

• Operating cash flow was SEK -306m vs SEK 405m; investing cash flow was SEK -303m vs SEK -168m and financing cash flow was SEK 565m vs SEK -401m.

Outlook and guidance

• Estimated production starts from the existing building-rights portfolio are 3,000–4,000 homes annually over the next two years; estimates may change with acquisitions, zoning and public decisions.

• End-2026 target: 6,400 completed self-managed homes, or investment properties worth at least SEK 14.8bn; 4,800 additional homes beyond current production-started projects were estimated as needed.

• The 2022 outlook flagged geopolitical uncertainty following Russia’s invasion of Ukraine; plans emphasized flexibility amid external uncertainty.