BBI Development posted PLN 50.92m net profit, PLN 52.95m EBIT in 2023

BBI Development posted PLN 50.92m consolidated net profit attributable to shareholders of the parent company in 2023 against a loss of PLN 9.4m a year earlier, the company said.

Operating profit was PLN 52.95m against a loss of PLN 2.01m a year earlier.

"The year 2023 was significant for our company in several respects, especially in terms of activities reflecting the value of the group's assets. There was another significant stage in the Roma Tower project, the construction of a high-rise building in the very centre of Warsaw - the project's real estate, located at the junction of Nowogrodzka and Emilia Plater streets in Warsaw, was contributed to a special purpose vehicle, co-controlled with an external investor - a partner in the project, whose capital commitment to this special purpose vehicle at the end of 2023 exceeded PLN 100 million, which is less than half of the planned total commitment on the part of the partner. At the same time, the group companies carried out intensive architectural and engineering work on the project in 2023 (and will continue to do so in subsequent periods), which is necessary to obtain a building permit and prepare the start of construction work. The recognition of the valuation of the project's real estate upon its contribution was a factor in reporting a significant share of the results of the associates and ending 2023 with a consolidated net profit of PLN 50.9 million," wrote CEO Michal Skotnicki in a letter to shareholders.

According to him, the past year was also another challenging period for the office and retail market segment, with a series of unfavourable macroeconomic conditions, still high inflation and interest rates and the unabated scale of the war across the eastern border.

The above continues to have an impact on the group's other key project, the Koneser Prague Centre in Warsaw's Praga district, which is fully completed and fully commercialised. This project is generating steadily growing revenues and is ready for sale. The realisation of the transaction depends only on the achievement of satisfactory financial parameters, and the currently observable market signals - the potential prospect of a reduction in interest rates in the euro area - allow us to assess the future with cautious optimism in this regard, the company reported.

Consolidated sales revenue reached PLN 24.44 million in 2023, compared to PLN 16.27 million a year earlier.

On a standalone basis, the net loss in 2023 was PLN 9.11m vs. a loss of PLN 7.81m a year earlier.

BBI Development is a property development company listed on the Warsaw Stock Exchange (WSE) since 1997.

Source: BBI Development and ISBnews