In This Article:
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Net Profit After Tax: $15 million for the first half of FY25.
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Revenue: $196 million from 479 settlements, a 59% increase over the previous year.
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Earnings Per Share: $18.02, up 468% from the previous year.
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Interim Dividend: $0.10 per share, fully franked, up 25% on the prior corresponding period (PCP).
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Net Sales: 654 lots contracted, compared to 529 in the previous year.
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Pre-Sale Contracts: $642 million, up from $525 million in the previous year.
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Gross Margin: Stable at 26%.
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Total Assets: $779 million as of December 31, up 5% from June 30.
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Net Bank Debt: $185 million, with gearing at 24% of total tangible assets less cash and 40% of equity.
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Interest Cover: 6.2 times, exceeding the facility covenant of 2 times.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cedar Woods Properties Ltd (ASX:CWP) reported a significant increase in net profit after tax to $15 million and revenue of $196 million, marking a strong improvement over the previous year.
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The company achieved a record $642 million in pre-sale contracts, up from $525 million the previous year, indicating strong future revenue potential.
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Cedar Woods Properties Ltd (ASX:CWP) declared an interim dividend of $0.10, fully franked, which is a 25% increase compared to the prior corresponding period.
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The company is leveraging strategic partnerships with QIC and Tokyo Gas to access larger development sites and generate regular fee income, enhancing its growth strategy.
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Cedar Woods Properties Ltd (ASX:CWP) is actively pursuing an ESG strategy, with significant investments in climate-responsive developments and renewable energy projects, such as the Microgrid at Eglinton Village in WA.
Negative Points
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Sales conditions in Victoria are currently weak, although improvement is expected in 2025 due to affordability advantages.
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The construction sector in Queensland is experiencing capacity constraints, which could impact project timelines and costs.
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Despite strong sales in some regions, the overall sales volumes in Western Australia have come off from previous high levels, indicating potential market saturation.
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The company has increased finance costs due to borrowing cost capitalization, reflecting the stage of their developments.
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Cedar Woods Properties Ltd (ASX:CWP) faces elevated risks in the construction sector due to the number of defaults among builders, although they have managed to mitigate this risk through strong relationships and due diligence.