Bonava’s Q3 interim report 2022:Good gross margin in delivered projects in a quarter with low number of recognised units
Third quarter, July – September 2022*
- Net sales amounted to SEK 3,208 M (3,577)
- Gross margin excluding costs in Sweden amounted to 15.9 per cent (13.5)
- Gross margin including costs in Sweden amounted to 11.1 per cent (13.5)
- Operating profit before items affecting comparability was SEK 150 M (297)
- Operating margin before items affecting comparability was 4.7 per cent (8.3)
- Profit before tax was SEK 107 M (264)
- Earnings per share was SEK 0.63 (1.83)
- The equity/assets ratio was 31.4 per cent (31.7)
- Number of building rights amounted to 32,300 (31,000)
- Number of housing units sold was 548 (1,238)
- Number of production starts was 860 (988)
Nine months, January – September 2022*
- Net sales amounted to SEK 9,545 M (8,369)
- Gross margin excluding costs in Sweden amounted to 14.3 per cent (12.9)
- Gross margin including costs in Sweden amounted to 12.6 per cent (12.9)
- Operating profit before items affecting comparability was SEK 556 M (486)
- Operating margin before items affecting comparability was 5.8 per cent (5.8)
- Profit before tax was SEK 434 M (264)
- Earnings per share was SEK 2.75 (1.79)
- The equity/assets ratio was 31.4 per cent (31.7)
- Number of building rights amounted to 32,300 (31,000)
- Number of housing units sold was 2,107 (3,233)
- Number of production starts was 2,249 (2,765)
- For full-year 2022, we revised our estimate for the number of production starts from 4,200 to 3,000. The adjustment is a result of a weaker market and a continued delay in granted building permits.
Significant events after the end of the period
- On 7 October, Bonava announced that we had signed an agreement for the sale of our subsidiary in Russia for a purchase price of approximately EUR 98 M (SEK 1.1 Bn)
* Recognised revenue, profit and key figures pertain to continuing operations, excluding St. Petersburg.
President and CEO Peter Wallin comments:
“Our improved project management has enabled us to address challenges including cost increases and material shortages. The underlying improvement in the project margin in ongoing projects is significant where gross margin in the quarter amounts to 15.9 per cent (13.5). We have charged the gross profit in the Swedish operation with SEK 155 M in costs based on the prevailing market situation where a number of projects will not be started why we have costs related to impairment losses on previously capitalised project engineering costs and fixed assets. Gross margin including these costs amounts to 11.1 per cent.
We have become more selective regarding production starts and investments in building rights in order to balance the risks that an increasingly weak market entail. This also creates scope to be able to act on the opportunities that arise going forward. We have a challenging time ahead of us, but I am convinced that we have the right competence and team in place to meet the challenges ahead.”
Q3 presentation today at 09.00 a.m. CET
The report will be presented by President and CEO Peter Wallin and CFO Lars Granlöf at 09.00 a.m. CET today at a webcasted conference. The webcast is accessible via this link: https://bonava.videosync.fi/2022-10-27-q3_2022
To participate in the telephone conference, please register at: https://call.vsy.io/access-255
After registration you will be provided with a phone number and a conference ID to access the conference.
To be able to ask questions, please follow the webcast and ask your questions in the chat or call in and dial “*5” on your phone.
The presentation material and an on-demand version will be available at bonava.com.
For more information, please contact:
Anna Falck Fyhrlund, Head of Investor Relations
Tel: +46 707 604 914
Fredrik Hammarbäck, Group Head of Press and Public Affairs
Tel: +46 739 056 063
This information is such that Bonava AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 a.m. CET on 27 October 2022.
Bonava is a leading residential developer in Europe with the purpose to create happy neighbourhoods for the many. The company is the first residential developer in Europe to receive approval from the Science Based Targets initiative for its climate targets. With its 2,100 co-workers, Bonava develops residential housing in Germany, Sweden, Finland, Norway, St. Petersburg, Estonia, Latvia and Lithuania, with net sales of approximately SEK 15.5 Bn in 2021. Bonava’s shares and green bond are listed on Nasdaq Stockholm.
For more information about us, visit: www.bonava.com