Y.H. Dimri Construction & Development (DIMRI) Q1 2024 earnings summary

Executive summary

• Q1 revenue was ₪337.5m and net income was ₪65.6m, both below Q1 2023; results included a ₪74m pretax gain from an Ashdod land sale recognized this quarter.

• Residential sales value rose 82% YoY and 187% versus Q4 2023; 298 units were sold, including an attributable share of 287 units.

• Equity was ₪2.21bn at March 31; a net ₪124.6m share issuance and a ₪70m dividend declaration were recorded during the quarter.

Financial highlights

• Q1 revenue was ₪337.5m versus ₪567.6m YoY; residential, rental and construction revenue was ₪313.7m versus ₪466.5m, and land-sale revenue was ₪23.8m versus ₪101.1m.

• Gross profit was ₪125.8m versus ₪247.4m; operating income was ₪101.1m versus ₪225.0m, and net income was ₪65.6m versus ₪152.9m.

• Gross margin was 37.28% versus 43.58% YoY; FY2023 revenue was NIS 1,355m, gross margin 37.3% and net profit NIS 249m.

• Ashdod land-sale pretax profit of ₪74m was recognized in Q1; the land had been sold in late 2023 for ₪118m.

• Net financing expense was ₪14.3m versus ₪26.7m; operating cash flow was ₪22.5m versus ₪232.8m.

Outlook and guidance

• Forecast 11,282 units to receive permits during 2024–2026; the broader portfolio totals 38,558 units across planning and execution, including partners’ interests, with an attributable share of 33,238 units.

• The Q1 pipeline covered ~36,000 residential units in development, planning or initiation, including ~17,000 conventional units and ~19,000 urban-renewal units; attributable share was ~31,250 units.

• From April 1 to May 28, 110 units were sold for ₪304.0m; 47 purchase applications totaling ₪193.8m had not become signed contracts.

• A post-quarter tender win secured rights for 263 units in Kiryat Gat for ₪22.7m plus ₪38.8m in development costs.

• Project estimates forecast NIS 9,573m in revenue and NIS 2,616m in gross profit; actual outcomes may differ if assumptions or work plans are not realized.