Toivo Group (TOIVO) Q2 2024 earnings summary

Executive summary

• Revenue increased 44% year-over-year to EUR 28.4 million for H1 2024, but operating profit declined 59% to EUR 2.3 million and net profit fell 87% to EUR 0.4 million, with EPS at EUR 0.00.

• Approximately EUR 100 million in new contracts were secured in Q2, including major sales to institutional investors.

• Six projects completed in Q2, totaling 159 apartments; 173 new apartments and two community properties contracted.

• The operating environment remains challenging for housing developers, with high inflation, interest rates, and oversupply in Finland.

• Operating profit decline mainly due to lower development margins and property sales.

Financial highlights

• H1 2024 revenue: EUR 28.4 million (up 44%); operating profit: EUR 2.3 million (down 59%); net profit: EUR 0.4 million (down 87%).

• Earnings per share: EUR 0.00 (down from EUR 0.06); fair value of investment properties: EUR 135.1 million (down 20%).

• Economic occupancy rate: 92.1% (down from 97.8%); total equity: EUR 68.5 million (down 6%).

• Equity ratio improved to 43.0% (from 39.3%); LTV reduced to 51.3%.

• Cash flow before changes in working capital (FFO): EUR 1.1 million (up from EUR 0.8 million).

Outlook and guidance

• Operating profit without changes in investment property values for FY 2024 expected at EUR 6–12 million; total operating profit expected at EUR 8–14 million.

• Targeting annual development and construction volume of EUR 100 million by 2026 and operating profit (excluding value changes) of EUR 20 million in 2026.

• Non-current net assets per share (NAV/share) expected to increase significantly each year; equity ratio target above 40%.