In 2019, the J.W. Construction Group achieved net sales revenue of PLN 605.3 million, which means a 50% increase compared to the previous year and generated a gross profit on sales of PLN 147.1 million (a 98% increase), and a net profit of PLN 63.4 million, compared to PLN 16.5 million last year, which constitutes a 283% increase. The gross margin on sales is around 25 percent.
Małgorzata Szwarc-Sroka, Member of the Supervisory Board of J.W. Construction Holding S.A. comments on the Company's results:
- "The financial result reflects the number of units transferred (1,485), mainly in the Bliska Wola district of Warsaw (over 1,059 units) and the Zielona Dolina district of Białołęka in Warsaw (328 units).
Another 20 investments are in preparation. In the coming periods, the Company plans to introduce more than 5200 units, with an area of more than 413,000 sqm. (including warehouse and commercial space of over 161,000 sqm). Together with the current offer, this amounts to a pool of over 6500 units, so the Group has a full portfolio for over 4 years. The planned investments are located mainly in Warsaw and its surroundings as well as in Kraków, Poznań, Łódź, Szczecin, Gdańsk and Chorzów. Most of the projects the Company is going to commence this year. The completion of a prestigious commercial and residential investment in the centre of Szczecin - Hanza Tower is also planned for 2020.
The company is systematically expanding its land bank. The value of the purchased land in the last two years has already significantly exceeded PLN 200 million, which allows the construction of 5200 units. Further purchases in attractive locations are in preparation.
The Company operated in 2019 in a favourable market environment. Low interest rates, which have been maintained for a long time, contribute to dynamic credit growth, and record low unemployment and growing prosperity strengthen the high tendency to invest in, among others, flats and commercial premises. According to the latest data published by the Central Statistical Office (GUS), developers handed over 130.9 thousand flats for use, i.e. 16.6% more than in 2018. The average prices were higher than in 2018; according to Expander, the offer prices of flats increased at a double-digit rate in 14 of the 16 largest Polish cities.