Real estate giant the Ananda Development PCL has recently released its revenue results for the first quarter of 2014. The results show an income growth of 70% from the same quarter last year with revenues up at 1,790 million baht, exceeding the company’s projections for the quarter by 14%.
Ananda announced a net profit of 110 million baht and also reported presales for the quarter of 2,142 million baht, exceeding the guided presales amount by 53%.
Chanond Ruangkritya.
Commenting on the results Muntana Aue-Kitkarjorn, Chief Financial Officer of Ananda Development, stated: “We are pleased to have achieved stronger than expected revenues and profits in the first quarter of 2014. Transfers were affected by the political and economic situation but demand from customers was strong enough that we achieved a 70% increase in revenue compared to the same quarter a year ago. Our gross profit margin remained exactly on target at 34% and the net margin of 6% for the quarter reflects a relatively low level of total revenues as we had no new projects completing, but costs remained constrained, with SG&A declining 54% compared to the previous quarter.”
Reflecting on the presales results, Ted Thirapatana, Chief Business Development Officer for the company, said, “Exceeding our guidance for presales by 53% shows that despite the political situation and economic weakness, demand remains strong for affordable units close to mass transit stations. We are also pleased that presales for housing of 679 million Baht in the first quarter represent a 76% increase on the 384 million baht presold in the same quarter a year before. This demonstrates that housing is back on track to perform as expected, after a difficult year in 2013, as we had to bring the housing production system up to speed after the IPO.”
He added, “Our customers are not showing any sign of financial stress despite the economic slowdown. Over 35% pay for their units entirely in cash and not a single one of our condominium customers was rejected for a mortgage during the quarter.”
Adding to the positive spin was Ananda CEO Chanond Ruangkritya, who commented: “As a company we laid out a five year business plan to the investment community. Despite the political and economic situation we have continued to execute and deliver on this plan. We have continued to acquire land for future projects and including announced and unannounced projects we have sufficient assets on hand to generate our targeted revenues for 2014, 2015 and 2016, with 2017’s “bucket” already 45% full.”
An artist’s graphic shows Ananda’s IDEO MOBI Sukhumvit condominium.
Ananda Development was founded in 1999 by Chanond Ruangkritya. The developments under its credentials include golf courses, housing estates and condominiums, primarily located in the Bangkok area and its environs. In 2007 Ananda started to manage real estate funds invested in residential condominiums along the city’s mass transit rail lines. With Pramerica Real Estate Investor Asia as a partner, the fund has targeted to develop 8,400 units worth Baht 21 billion in sale proceeds to serve demand of a young generation of Bangkok residents. The projects, which include IDEO MOBI Phyathai, IDEO MOBI Sukhumvit, IDEO MOBI Sathorn, and IDEO MOBI Rama 9, are currently in the construction process.
