Balwin breaks through R3bn revenue mark
JSE-listed residential property developer Balwin Properties reported a 16% revenue increase from R2.7 billion in its prior comparative period to R3.1 billion, for its fiscal year (ended 28 February), a first ever for the company.
According to a statement released yesterday, revenue growth is due to an increase in the number of apartments handed over during the period and an overall increase in property unit sales.
“Breaking through this R3 billion revenue barrier for the first time is a huge achievement that we’re very proud of,” says CEO Stephen Brookes, who founded the company 26 years ago.
The group ended the period with a cash position of R666 million, an increase of R329.1 million from the prior year.
Balwin reported an 8% increase in operating profit for the year, up from R336.4 million in 2021 to R363.1 million.
However, the company said its profitability was affected by a once-off IFRS (International Financial Reporting Standard) 2 charge of R34.1 million, relating to a Black Economic Empowerment (BEE) transaction.
Excluding the transaction, the developer said it reported an 18.1% increase in profit for the year to R397.2 million.
The group also reported a 10% increase in net asset value to 749 cents per share.
Earnings per share increased by 7.8% to 77.24 cents while headline earnings per share increased by 6.2% to 75.88 cents.
Operating expenses rose by 13.7% from the prior period to R301.6 million.
Balwin said this is mainly due to non-cash cost movements, comprising of depreciation, volume-based sales commissions, and sales costs.
Its subsidiary, Balwin Fibre, also reported higher operating costs due to the increased volume of apartments connected to fibre.
“Excluding the above costs, the group’s operating costs increased by 6.1% from the comparative period,” the statement added.
The group, which has developed 51 803 apartments across 28 developments, said demand for one- and two-bedroom apartments comprised of approximately 80% of the total apartments recognised in revenue, a 3% increase from the prior period.