The Company completed 9 months of 2019 with strong results in sales revenues and gross profit. The sales revenues for the reporting period were 37.3 million euros, which is an increase of 77% compared to the 21.0 million euros during the same period last year. The gross profit increased by 70% during the 9 months of 2019 resulting in 11.7 million euros compared to 6.9 million euros in 2018.
The increase in sales revenues was strongly influenced by the active sales across the operating area in Vilnius, the Šaltiniu Namai Attico 5 new apartment buildings, Kristina Houses development in Tallinn, and River Breeze Residence in Riga. The real estate sales revenues are recorded at the moment final notary deeds of sale are concluded and properties are handed over to the buyers. Therefore, the revenues from the sales of the real estate depend on the completion of the residential developments.
The operating profit for 9 months of 2019 was 6.9 million euros compared to 4.8 million euros during the same period in 2018. During the third quarter of 2019, the operating profit was 1.8 million euros and 0.4 million euros in 2018. Otherwise positive results were influenced by 6.9 million euros of interest expenses related to T1 project. The interests of T1 are recorded in finance cost instead of capitalization into investment property, which has been done during active development until 31 December 2018. The net result for the 9 months of 2019 was 3.1 million euros loss compared to 2.3 million euros profit during the same period in 2018. The Company is continuously exploring opportunities to reduce financial costs of the Company.
Regardless of the influence of T1, the Company foresees stable results in revenues and operating results during the upcoming periods, through its operations. Pro Kapital has recently notified about the start of construction of the first two phases of Kalaranna Quarter in Tallinn, which is confirmed to be financed by LHV Pank and constructred by Nordecon. In Riga, the Company proceeds with the sales of River Breeze Residence and the technical design of Kliversala Quarter. Following the completion of 5 houses of Saltiniu Namai Attico in Vilnius, the Company is now planning the next phases of for Saltiniu Namai Attico city villas and a commercial building.
Pro Kapital held the investor webinar this morning to introduce the results for the 9 months and 3rd quarter of 2019. The recording of the webinar is available here: https://youtu.be/UXMJmeNVQEk
The webinar presentation is attached to this notice.