Pro Kapital Grupp
Pro Kapital’s 2019 1st quarter sales revenues increased by 53% to 10.4 million euros
The Company started the year 2019 with strong results in revenues and gross profit. The sales revenues for the first quarter of 2019 were 10.4 million euros, which is an increase of 53% compared to the 6.8 million euros during the same period last year.
This result was strongly influenced by the active sales of Kristina Houses development in Tallinn and River Breeze Residence in Riga, where the sales of two luxury homes totaled in 2.4 million euros in the sales revenues. Revenues from sales of real estate depend on the completion of the residential developments, as the revenues are recorded at the moment notary deeds of sale are concluded. As a result of active sales, the operating result for the first quarter of 2019 was 2.6 million euros comparing to 0.7 million euros profit during the same period in 2018. Gross profit margin has increased by significant 51%. However, the otherwise positive results were influenced by 1.7 million euros due to increase of interest expenses related to the development of T1. Consequently, the net result of the first quarter in 2019 was 0.1 million euros loss and remained at the same level as in the comparable period.
Pro Kapital has either already started or in the planning process of seven large-scale development projects in Tallinn, Riga and Vilnius. The long-awaited Ferris Wheel on the roof of the T1 Mall of Tallinn, which is unique throughout Europe, has been opened to the visitors. In the Kristiine City, which is highly valued by the customers, the last three apartment buildings of ten of Kristina Houses, are currently under construction with active ongoing presales. The projecting work of Kalaranna residential and business quarter, located on the border of Tallinn Old Town is also underway. Although we have not yet started with construction nor sales activities, we have already concluded 78 initial reservation agreements to residential premises in Kalaranna, responding to the high interest towards the project. In Riga, we are simultaneously proceeding with the sales of the River Breeze Residence apartments and the design works for the entire Kliversala Quarter, Tallinnas Street Residential Quarter and Brivibas Business District. In Vilnius, we are looking forward to the completion of the four houses of the Šaltinių Namai Attico area, bordering with the Old Town, and we are actively engaged with pre-sales.
We continue working on stable growth in revenues and operating results during the upcoming periods. At the same time, we are exploring opportunities to reduce financial costs by refinancing current debt instrument.
Pro Kapital held its first investor webinar this morning to introduce the results for the first quarter of 2019. The recording of the webinar is available here: https://www.youtube.com/watch?v=vlaYORRb6TA
The webinar presentation is attached to this notice.