Selvaag Bolig ASA: Q1 2015: record sales and high profitability
- IFRS: revenues NOK 755.6 million (2014: NOK 244.6 million), EBITDA adjusted for financial expenses NOK 120.7 million (NOK 16.7 million), representing a margin of 16 per cent (6.8 per cent)
- NGAAP: operating revenues NOK 827.1 million (NOK 688.2 million), EBITDA (percentage of completion method) NOK 140.3 million (NOK 123.8 million), representing a margin of 17 per cent (18 per cent)
- Best sales in the company's history, high construction activity, high number of construction starts
- 224 homes delivered to buyers (80), 308 sold (139), 284 started (77)
- Sales ratio of 81 per cent (76 per cent) for homes under construction
- Value of homes under construction NOK 5 billion (NOK 5.5 billion)
- Land purchases in Oslo and Bærum
Selvaag Bolig had operating revenues according to Norwegian generally accepted accounting principles (NGAAP) of NOK 827.1 million. EBITDA came to NOK 140.3 million, representing a margin of 17 per cent.
"We're delivering good margins, and sales of new homes were extremely good during the quarter," says CEO Baard Schumann.
"Demand for newbuilds is high and what gets put on offer is quickly sold. The positive trend has continued in the second quarter, and we take an optimistic view of coming periods."
The company started construction on 284 homes during the first quarter, and had 1 384 under construction at 31 March with a collective sales value of roughly NOK 5 billion. It held 40 completed homes which had not been sold.
Eighty-one per cent of the units under construction at 31 March had been sold. Since sold homes are first recognised as income on delivery, this stock represents substantial assets for Selvaag Bolig in the time to come.
When calculated in accordance with the IFRS, revenues from homes delivered came to NOK 755.6 million and EBITDA was NOK 98.6 million - representing a margin of 13.1 per cent.
In the first quarter of 2014, IFRS operating revenues amounted to NOK 244.6 million and EBITDA was NOK 9 million - giving a margin of 3.7 per cent.
Operating revenues for the same period calculated in accordance with NGAAP were NOK 688.2 million and EBITDA was NOK 123.8 million. That represented a margin of 18 per cent.
The interim report for the first quarter of 2015 can be downloaded here: www.selvaagboligasa.no/en
Further information from
Baard Schumann, CEO, Selvaag Bolig ASA
Telephone: +47 940 80 000, e-mail: bs@selvaagbolig.no
Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail: smo@selvaagbolig.no
Selvaag Bolig ASA is a residential property developer controlling the entire value chain from acquisition of land to sale of homes. The company has several thousand homes under development at any given time, and focuses on the growth areas in and around Greater Oslo, Bergen, Stavanger and Trondheim. Selvaag Bolig represents a continuation of Selvaag's 60-year history and experience, and offers a broad variety of property types marketed under the brand names Start, Hjem and Pluss. The company is headquartered at Ullern in Oslo.
http://www.selvaagboligasa.no/en