{"id":671,"date":"2018-05-09T06:21:07","date_gmt":"2018-05-09T06:21:07","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=671"},"modified":"2018-05-09T06:21:07","modified_gmt":"2018-05-09T06:21:07","slug":"ronson-development-presents-financial-results-for-q1-2018","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/ronson-development-presents-financial-results-for-q1-2018\/","title":{"rendered":"Ronson Development presents financial results for Q1 2018"},"content":{"rendered":"<ul>\n<li><strong>In the first quarter of 2018, sales revenues reported by Ronson Development amounted to PLN 80.2 million and taking into account the value of apartments delivered to customers in the City Link I joint venture project, its total revenues reached PLN 103.4 million. In the first quarter of 2017, revenues amounted to PLN 110.1 million.<\/strong>\n<ul>\n<li>During the first three months of this year, Ronson delivered 304 units to its customers, compared with 299 in the corresponding period last year.<\/li>\n<li>Of the units delivered to customers in the first quarter of the year, 243 were in fully consolidated projects, and 61 apartments in the City Link I project, in which Ronson Development holds a 50% stake.<\/li>\n<\/ul>\n<\/li>\n<li><strong>The gross profit on sales recognized by the Company in Q1 2018 was PLN 10.6 million, while the total economic result (including 100% of the gross profit in the City Link I project) was PLN 16.6 million, compared to PLN 18.6 million gross profit on sales in Q1 2017.<\/strong>\n<ul>\n<li>The average gross profit margin earned on the residential projects delivered to customers in the first quarter of 2018 (including City Link I) was 17% and was at a level comparable to the corresponding period of 2017.<\/li>\n<\/ul>\n<\/li>\n<li><strong>In Q1 2018, the net profit attributable to the shareholders of the parent company was PLN 3.9 million compared to PLN 5.9 million in the same period of the previous year.<\/strong><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/ronson-development-presents-financial-results-for-q1-2018\/#Commentary_on_financial_results\" >Commentary on financial results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/ronson-development-presents-financial-results-for-q1-2018\/#Sales_results_in_Q1_2018\" >Sales results in Q1 2018<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/ronson-development-presents-financial-results-for-q1-2018\/#Plans_for_the_rest_of_2018\" >Plans for the rest of 2018<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Commentary_on_financial_results\"><\/span><u>Commentary on financial results<\/u><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><em>\u201cIn the first quarter of this year, our customers received keys to a total of 304 units, which is one of the best quarterly performances in the history of Ronson Development. The largest contributor to the financial results in this period was the Espresso project in the Wola district in Warsaw, completed in February, where we delivered to customers 59 apartments worth PLN 23.5 million and earned gross margin of 21.5%. The Moko project in the Mokot\u00f3w district also contributed significantly to the gross profit; in this project we delivered to customers \u201conly\u201d 10 apartments worth PLN 9.3 million, but the gross margin in this project is as high as 29.9%. We earned a very similar margin of 30% in the City Link I project where, in the first quarter of the year, we delivered to customers 61 apartments with a total value of PLN 23.2 million. <\/em><em>Since Ronson Development owns 50% of this project, we recognize just half of the operating result of this joint venture project in our profit and loss account, plus our fee for managing the project,\u201d <\/em>said <strong>Rami Geris, Management Board Member and CFO of Ronson Development<\/strong>.<\/p>\n<p><em>\u201cOur low-margin projects, such as M\u0142ody Grunwald in Poznan and Panoramika in Szczecin, also contributed materially to the number of units delivered to our customers in the first quarter of the year, as well as had positive impact on the cash flows from operating activity. As a result, our average gross profit margin earned on the residential projects delivered to customers in this period (including City Link I) was 17%, which was comparable to the figures in the first quarter of 2017,\u201d<\/em> <strong>Rami Geris<\/strong> added.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sales_results_in_Q1_2018\"><\/span><u>Sales results in Q1 2018<\/u><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the first quarter of the year, Ronson Development contracted the sale of 188 units, of which 174 worth PLN 63.5 million in fully consolidated projects and 14 units worth PLN 8.4 million in the City Link I and II projects, where the Company holds a 50% interest.<\/p>\n<p><em>\u201cThe sales results for the first quarter of this year are higher than our assumptions for this quarter, but slightly lower than in the comparable period of last year. Also, they do not include the sales results of the Nova Kr\u00f3likarnia project in Mokot\u00f3w, which was added to our portfolio in the beginning of April this year, following the transaction concluded with Global City Holdings. In the first quarter, acting as the manager of this project, we sold 16 apartments in Nova Kr\u00f3likarnia,\u201d <\/em>said <strong>Andrzej Gutowski, Management Board Member and Director of Sales and Marketing at Ronson Development<\/strong>.<\/p>\n<p>At the end of March, without the Nova Kr\u00f3likarnia project, the Company\u2019s sales offering included a total of 788 apartments.<\/p>\n<p>In April, Ronson Development launched the pre-sales of apartments in the Grunwald<sup>2<\/sup> project on ul. \u015awierzawska in Pozna\u0144, where 268 apartments will be built. <em>\u201cThe customers have been eagerly waiting for this project and it enjoys significant interest. This is shown by the fact that almost 30% out of the 133 units offered in the first stage of this project have already been reserved in the pre-sales period,<\/em>\u201d <strong>Andrzej Gutowski <\/strong>stated.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Plans_for_the_rest_of_2018\"><\/span><u>Plans for the rest of 2018<\/u><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The 2018 plans of Ronson Development, presented along with the publication of the 2017 financial results, included sales of more than 750 units and delivery of about 800 units to customers. Therefore after the first quarter, the fulfillment of these intentions reached 25% and 38%, respectively.<\/p>\n<figure id=\"attachment_672\" aria-describedby=\"caption-attachment-672\" style=\"width: 200px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-672\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/05\/Nir-Netzer-Ronson-Development-200x300.jpg\" alt=\"Nir Netzer, CEO of Ronson Development\" width=\"200\" height=\"300\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/05\/Nir-Netzer-Ronson-Development-200x300.jpg 200w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/05\/Nir-Netzer-Ronson-Development.jpg 386w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/05\/Nir-Netzer-Ronson-Development-280x420.jpg 280w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-672\" class=\"wp-caption-text\">Nir Netzer, CEO of Ronson Development<\/figcaption><\/figure>\n<p><em>\u201cWhen we presented our plans for the current year, the Nova Kr\u00f3likarnia project, prestigious investment located right in the heart of the Old Mokot\u00f3w district, was in our dreams, but not yet in our portfolio, and we are convinced that now, once we completed purchasing it, the project will have a positive impact on our sales performance and financial results starting in the second quarter of this year. 80% of the units offered for sale in the first stage had been sold by the end of March\u201d<\/em> said <strong>Nir Netzer, CEO of Ronson Development<\/strong>.<\/p>\n<p>Moreover, at the end of Q1 2018, the completed Ronson Development projects included a total of 275 apartments that have not yet been delivered to customers, out of which 148 apartments with an aggregate value of PLN 65.5 million have already been sold. Most of those apartments will be delivered to customers in the second quarter of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the first quarter of 2018, sales revenues reported by Ronson Development amounted to PLN 80.2 million and taking into account the value of apartments delivered to customers in the City Link I joint venture project, its total revenues reached PLN 103.4 million. In the first quarter of 2017, revenues amounted to PLN 110.1 million. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9],"tags":[215,234,74,216,2872,352,76,82],"class_list":["post-671","post","type-post","status-publish","format-standard","has-post-thumbnail","category-companies","tag-andrzej-gutowski","tag-nir-netzer","tag-poznan","tag-rami-geris","tag-ronson","tag-ronson-development","tag-szczecin","tag-warsaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=671"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/671\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/672"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}