Besqab’s interim report for January - September 2024 shows a stable third quarter with increased sales and improved results

Link to the digital presentation of the interim report on Friday, 15 November at 09:00 (in Swedish): https://ir.financialhearings.com/besqab-q3-report-2024

Magnus Andersson, CEO Besqab, says:
"We are proud to deliver another quarter with increased revenue and improved results, with a gross margin of approximately 19 percent for the quarter. The residential market continues to recover, although supply is high. Our sales have increased significantly compared to the previous quarter, and we have sold or booked 85 percent of the ongoing production, which gives us the opportunity to continue starting new projects.”
 

The merger of Aros Bostadsutveckling and Besqab was completed on March 15, 2024. Comparative figures prior to this date refer only to Aros Bostadsutveckling.

Period January - September:

» According to segment reporting, net revenue amounted to SEK 1,456.4 million (1,043.3). The gross profit was SEK 256.4 million (214.0), and the gross margin was 17.6 percent (20.5).

» According to segment reporting, operating profit was SEK 91.2 million (132.2), and the operating margin was 6.3 percent (12.7). Profit for the period was SEK 69.9 million (105.0). Earnings per share, before and after dilution, amounted to SEK 0.79 (2.19).

» According to segment reporting, the equity ratio as of the balance sheet date was 66.3 percent (70.3), equity was SEK 3,538.2 million (1,982.1), and total assets amounted to SEK 5,333.7 million (2,817.7).

» According to IFRS, net revenue amounted to SEK 2,863.3 million (1,000.0), the operating margin was 0.2 percent (13.8). Profit for the period was SEK -6.3 million (115.7). Earnings per share, before and after dilution, were SEK -0.07 (2.41).

» According to IFRS, the equity ratio as of the balance sheet date was 58.4 percent (62.0), equity was SEK 3,153.3 million (1,646.5), and total assets amounted to SEK 5,403.7 million (2,657.7).

The share of booked or sold homes in ongoing production was 85 percent (87). The number of homes sold during the period was 212 (34).

» The number of homes transferred to buyers during the period was 398 (409). The number of profit-recognized homes according to IFRS was 689 (466).

Period July - September:

» According to segment reporting, net revenue was SEK 509.1 million (315.9). Gross profit amounted to SEK 94.1 million (63.3), and the gross margin was 18.5 percent (20.0).

» According to segment reporting, operating profit was SEK 37.5 million (42.2), and the operating margin was 7.4 percent (13.4). Profit for the period was SEK 49.5 million (32.0). Earnings per share, before and after dilution, amounted to SEK 0.49 (0.66).

» According to IFRS, net revenue was SEK 1,040.7 million (437.2), the operating margin was 4.0 percent (14.1). Profit for the period was SEK 47.8 million (52.6). Earnings per share, before and after dilution, were SEK 0.47 (1.09).

» The share of booked or sold homes in ongoing production was 85 percent (87). The number of homes sold during the period was 101 (12).

» The number of homes transferred to buyers during the period was 93 (49). The number of profit-recognized homes according to IFRS was 136 (158).

Significant Events During the Quarter:

» On July 5, the property Mörtnäs 1:587 in Värmdö Municipality was acquired through a corporate acquisition. The acquisition includes building rights for the construction of approximately 60 homes, including multi-family houses and terraced homes.

» On September 1, Magnus Sundell joined Besqab as the new CFO for the group and a member of the executive management team.

» In September, production started on two new residential projects: Aspen in Stockholm and Norrberget Utsikten in Vaxholm. The projects encompass 77 apartments, which will be built through shared contracting under Besqab's leadership.

Significant Events After the Period:

» On October 8, 195 building rights in Solna were sold to Alecta Fastigheter through two corporate transactions. The purchase price was approximately SEK 300 million. The transaction generated a positive result effect and a liquidity inflow of approximately SEK 300 million, which will be recognized in the fourth quarter.

» On October 28, the first project in the portfolio of rental projects sold to global asset manager Patrizia in June 2022 was handed over. The project consists of 153 homes and a garage with 222 parking spaces in Invernesshöjden, Danderyd.

» On October 31, ALM's convertible bonds were converted into common shares in Besqab AB, totaling a nominal amount of SEK 118.5 million. The conversion was made at an agreed conversion price of SEK 60 per new share, resulting in an increase of 1,975,576 shares and votes in Besqab AB. Following the conversion, the total number of shares in Besqab AB is 115,246,457, of which 103,570,025 are common shares and 11,676,432 are preference shares. The conversion resulted in a dilution for other shareholders of 1.71 percent of the capital and 1.89 percent of the voting rights.

Certified Adviser for Besqab AB (publ) at Nasdaq First North Growth Market is Carnegie Investment Bank AB (publ).

This information is information that Besqab AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU 596/2014). The information in this press release has been made public through the agency of the responsible person set out above for publication at the time stated the Company's news distributor, Cision, at the publication of this press release.