Solid quarter driven by strong performance in Housing. Adjusted operating profit margin improved to 4.2% (2.7).
Highlights from segments
Housing, adjusted operating profit increased to EUR 21 million (14).
- Supported by a better sales mix and improved margins across the business.
- Number of unsold completed apartments decreased by 58% to 214 (511).
Business Premises, adjusted operating profit increased to EUR 1 million (-1).
- Supported by improving operational performance.
Infrastructure, adjusted operating profit increased to EUR 2 million (-1).
- Transformation of the business continued according to plans.
- The selection of new projects has been strict.
Property Development, adjusted operating profit decreased to EUR 1 million (2).
- There were no significant transactions during the quarter.
- The internal rate of return for the segment´s investment portfolio was 12%.
- Balance sheet remained strong. Net interest-bearing debt was at EUR 338 million (439).
- Gearing at 41% (44).
- Land bank amounted to 2,173,000 sqm, which enables the construction of approx. 32,000 new homes.
- Strong order book of EUR 3,756 million (31 Dec 2021: 3,847).
- Combined lost time injury frequency decreased to 10.5 (12.2)
In Housing, completions of consumer apartments are expected to decrease compared to 2021. In Business Premises, operational performance will continue to improve. Infrastructure will gradually improve, while still impacted by certain legacy low-margin projects. In Property Development, there are several promising projects in the pipeline.
YIT expects its Group adjusted operating profit for continuing operations to be higher than in 2021 (2021: EUR 85 million).
Temporary shutdowns or slower progress on construction sites and delayed completions due to the COVID-19 pandemic or construction material and labour availability could lead to the postponement of revenue and profit from one quarter or year to another. YIT aims to mitigate the impact of increased construction material costs by actively managing its customer relations, contracts, and procurement. Due to increased number of apartments under construction, YIT expects to tie up more capital as the year progresses. Due to increased number of apartments under construction, YIT expects to tie up more capital as the year progresses.
News conference on 29 April 2022
A news conference will be arranged on Friday, 29 April 2022 at 10.00 a.m. Finnish time (EET, at 8.00 a.m. GMT). The results will be presented by Markku Moilanen, President and CEO of YIT Corporation, and CFO Tuomas Mäkipeska. The news conference will be held as a live webcast that can be followed on the company’s web site at www.yitgroup.com/webcast. A recording of the webcast will be available at the same address later that day. www.yitgroup.com/webcast
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