February 18, 2015 – Pruksa Real Estate has secured the highest earnings and net profits in historical records in times of receding real estate market conditions. The Company’s earnings are 42,702 million Baht whereas the net profit is 6,655 million Baht, a 10% and 14.7% increase respectively.
Mr. Thongma Vijitpongpun, Chief Executive Officer and President, revealed that 2014 operating performance has been the highest in the course of 21 years, with the revenue of 42,702 million Baht, a 10% increase from 2013 with the revenue of 38,811 million Baht. Major sources of revenue are from townhouses and single-detached houses for 32,567 million Baht, while the revenues from condominiums and overseas projects are 10,135 million Baht. The Company has announced the net profit of 6,655 million Baht, a 14.7% increase from 2013 with the net profit of 5,802 million Baht. The success has been the results of cost management and more effective processes. Nevertheless, the overall real estate market landscape in Bangkok and vicinity has dropped by 15.8% but Pruksa is still capable of possessing a higher portion of the market share from 11% in 2013 to 13%. In this regard, the townhouse range still has the highest market share of 32%.
Mr. Lersuk Chuladesa, Vice Chairman of Executive Committee and Director, Pruksa Real Estate Plc stated that, “the Company is determined to operate the business according to the platform that has been developed, while keeping focus on the horizontal market. With this, at the end of 2014, it had been found that 77% of the revenue was contributed from horizontal projects while 23% of the revenue was contributed from vertical projects. The duration of construction for horizontal projects has been reduced, greatly shortening the time it takes to deliver townhouse and single-detached house units. These outcomes have been resulted from the adoption of the Pruksa Precast technology as well as the quality construction system (Pruksa REM). The business cycle time from reservation to transfer of ownership has been reduced to only 87 days, from 146 days in 2013. This is considered the Company’s strength, leading to faster asset circulation and the higher revenue and net profit generation as previously mentioned.”
In 2015, there is a pending backlog for a total of 34,224 million Baht and it is expected that by the end of this year this will be turned into revenue for 22,862 million Baht, accounting for 48.6% of the revenue target of 47,000 million Baht for 2015. We can be confident that 2015 is going to be another year of growth as the Company has planned.”