Neinor leaves losses in the first half and earns 12.4M euros

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The company has entered 161.8 million euros between January and June, doubling the figure for the same period of the previous year, 85% of the turnover corresponds to the promoter business.

Neinor Homes leaves losses behind. The promoter led by Borja Egotxeaga has closed the first half with a net profit of 12.4 million euros, well above the result recorded in the same period last year, when the company lost 8.2 million euros.

The company has entered 161.8 million euros between January and June, doubling the figure for the same period of the previous year— 85% of the turnover corresponds to the promoter business, while 10.4 million and 15.3 million euros correspond to legacy and servicing activities, according to the company's results collected in the National Securities Market Commission.

The increase in turnover is a result of the increase in the company's gross margin, 82.1% higher than in the same period of 2018. At the same time, the developer has reduced its expenses to 22.9 million this year.

The company's gross operating profit (ebitda), on the other hand, has increased tenfold, reaching 27.6 million euros. Adjusted ebitda amounts to 25.7 million euros, 40% of the target set for the year, of 70 million euros.

In this quarter, the company has delivered 379 homes, corresponding to 32% of the target set for this year. On the other hand, the net value of the company's assets (NAV) has decreased to 1,325 million euros, “due to the new business plan, the delay in deliveries, the repurchase program and the deterioration of the legacy,” according to Savills Aguirre Newman.

“The figures reached in the first six months of the year are positive and reinforce our idea of ​​continuing to implement our strategy that is proven successful, in a growing year in terms of home deliveries in line with the schedule established in our business plan," says the CEO of the company, Borja García-Egotxeaga.

With these results, Neinor overcomes the profit warning announced in April, in which the developer reduced its ebitda objective by 50% and 40% in the coming years and lowered the housing delivery objective.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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