WOOD Flash – ONE United Properties: 1Q23 in line, as higher revenue compensated for a lower gross profit margin
During 1Q23, ONE achieved EBITDA (ex. revaluations) of EUR 20m, the highest result in its history. At 31%, the gross profit margin came in slightly below our estimate, but management reiterated its guidance for a 38% GPM in 2023E, highlighting that the 1Q23 result was driven by a higher share of early-stage projects in the revenue recognition. Management believes that the premium end of the residential market remains robust, and sees continued strong demand for its projects. It highlighted that prices are holding up well, land prices are flat, and construction costs are easing relative to last year’s elevated levels, which means that margins should be stable at (the expected) high levels. Having received permits for a number of its projects late last year, ONE’s permitted project pipeline should cover around four-to-five years of development. Management expects that the capex should be covered by cash inflows from sales and pre-sales in both 2023E and 2024E. Accordingly, it expects the leverage to remain low going forwards, and does not anticipate a need to raise capital in the foreseeable future.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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