Rouble and valuation losses from COVID-19 pandemic hamper growth projections
The Warimpex Group posted a record profit of EUR 66.5 million in the 2019 financial year. Now, the outbreak of the COVID-19 pandemic around the world has caused a downward revision of growth projections. These conditions led to a loss for the first quarter of 2020 in the amount of EUR 18.7 million, which stemmed from a lack of property sales combined above all with currency translation losses with no direct cash effects, non-cash measurement losses from the valuation of properties, and changes in deferred taxes. This contrasted strong positive operational performance with an increase in total revenues and gross income from revenues and continued positive EBITDA (results of operating activities before finance income, taxes, depreciation, and amortisation). “The record result in the previous year bolstered Warimpex’s financial base at the right time, allowing for an equity ratio of 38 percent as at 31 March 2020. Thanks to the strategic groundwork laid over the past years, hotels, which are being…
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