Y.H. Dimri Construction & Development (DIMRI) Q2 2024 earnings summary

Executive summary

• Over 35 years of activity with a strong geographic spread, self-financed project execution, and a robust residential and investment real estate portfolio, supporting high profitability relative to the sector.

• Revenue for H1 2024 reached ₪1,355 million, with net income of ₪267 million, reflecting strong sales growth and improved profitability year-over-year.

• Gross margin for H1 2024 was 37%, compared to 43% in H2 2023 and 50% in H1 2023, influenced by project mix and higher land sales.

• Dividend distributions in 2024 totaled ₪158 million, with an additional ₪88 million approved for September 2024.

• The company is actively investing in land acquisitions and new projects, including a major post-period acquisition in Tel Aviv for ₪1.1 billion.

Financial highlights

• H1 2024 revenue: ₪1,355 million (up from ₪865 million in H1 2023); net income: ₪267 million, up from ₪123 million in H1 2023.

• Gross profit for H1 2024: ₪500 million, with a gross margin of 37%.

• Equity increased to ₪2.32 billion as of June 30, 2024, up from ₪1.99 billion at year-end 2023.

• Cash and equivalents at June 30, 2024: ₪158 million.

• EBITDA for H1 2024: ₪358 million, compared to ₪207 million in H1 2023.

Outlook and guidance

• Management expects continued strong sales momentum, with 187 units sold for ₪415 million post-period.

• Expected revenue from projects in execution and planned for the coming year is ₪9.5 billion, with an anticipated gross profit of ₪3.1 billion and an average margin of 33%.

• Recognized but not yet realized gross profit stands at ₪550 million.

• The company plans further expansion in both residential and investment real estate, including large-scale projects in Tel Aviv and Romania.

• No material liquidity issues anticipated despite ongoing negative operating cash flow, supported by strong cash position and available credit lines.