Housing developer Bonava almost halved its turnover but improved its earnings in the third quarter.

Sales fell 48.2 percent to SEK 1,431 million (2,765).

The number of homes sold amounted to 524 (469) and the number of homes in production amounted to 411 (388).
Operating profit amounted to SEK -258 million (-1,213).

Operating profit from continuing operations amounted to SEK -19 million (30).

Profit after tax for continuing operations was SEK -394 million (-1,358). Earnings per share amounted to SEK -1.23 (-12.85).

"We see a clear improvement in the housing market with increased demand where household purchasing power has strengthened. However, the return to a normalized situation will take time. The consumer segment is increasing significantly from a low level and we see an increasing interest in investor transactions", says CEO Peter Wallin in the report.

He continues.

"An expected low business volume in the quarter has been met by the previously communicated savings measures, which have now been implemented. We will have achieved gross savings of SEK 1 billion annually from January 2025. Improved cash flow for the period
has further reduced net interest-bearing debt."

He also emphasizes that the company is nimble.

"We are now entering the fourth quarter, which is the busiest period of the year for handovers and start-ups. We have been working in a focused way over the past year to adapt the business to new market conditions. With increased decentralization, we are closer to our customers and markets, allowing us to react faster to local changes. We are ready to increase the number of project starts to meet customer demand for new homes."

Bonava, SEKmQ3-2024 Q3-2023 Change in net sales
Net sales 1 431 2 765 -48,2%
Operating profit/loss-258 -1 213
Operational operating result-19 30
Operating operating margin 1,1%
Net result-394 -1 358
Earnings per share, SEK-1,23 -12,85