Revenue for the full year of 2014 was 10,580 million Baht, an increase of 15% over the full year of 2013, with 9,678 million Baht revenue from real estate, an increase of 10% from the previous year. Profit for the full year was 1,301 million Baht, an increase of 60% from the profit of 812 million Baht in 2013 and completing the turnaround from the loss in 2012 of 199 million Baht.
In the 4th quarter of 2014 the company received 4,247 million Baht in revenue and earned 647 million Baht in net profit. This represents a decrease of 30% in revenue compared to the same period of 2013 due to revenues being more evenly distributed across the year in 2014 compared to 2013. The company’s net margin in the fourth quarter was 15% compared to a net profit margin of 16% in the fourth quarter of 2013.
The company generated 20,898 million Baht in pre-sales for the year, a slight decrease from 2013, which was a record year for the company mostly due to the launch amount in 2014 being approximately half that of 2013 as the company waited for capital raised at the IPO and invested in 2013 to return and be available for reinvestment.
The company ended the year with a backlog of 27,150 million Baht, another record for the company, and due to transfer over the next 3 years.
Mrs. Muntana Aue-Kitkarjorn, CFO of Ananda Development, stated that, “Ananda Development is pleased to have achieved record annual profits and our highest ever profit margin in 2014. Strong financial discipline has ensured that despite much higher than expected pre-sales for the year, and the costs associated with those sales, we increased our net margin to 12.3% from 8.8% the previous year.”
Commenting on the level of presales for the year, Mr. Ted Thirapatana, Chief Business Development Officer for Ananda, stated, “By achieving 20,898 million Baht in pre-sales for the year we exceeded all our expectations and demonstrated the strong demand for affordable, quality units near mass transit stations. The initial sales rate at launch for the four condominiums we launched in 2014 was 83%, our highest figure ever and shows the increased recognition by consumers of the value of condominiums located near mass transit stations and the value of the Ananda brand as being the clear leader in the market.”
He added, “Our customers are not showing any sign of financial stress despite the economic slowdown. Between 25-35% pay for their units entirely in cash and the percentage of our customers who were unable to transfer due to failing to get a mortgage was 6% for the year.”
Mr Chanond Ruangkritya, CEO of Ananda, said, "We are delighted to have achieved record revenues and record profits for the year despite the economic and political headwinds and pleased to have delivered to shareholders a record net margin due to our strong discipline in controlling costs. Ananda is the current leader in Bangkok mass transit living and we expect to more than double our launches in 2015, further strengthening our position as a leading condominium developer.”
He continued, “Despite this explosive growth we have maintained our financial discipline and maintained our net interest bearing debt to equity below our target of 1:1 at the end of the year.”
He added, “As well as the record results the company has made significant additional progress during the year. We expanded our joint venture with Japan’s largest real estate company, Mitsui Fudosan, with two additional projects that both sold out at launch. We have begun deployment of Mitsui’s proprietary Total Quality Project Management System, which we expect to have significant value in improving quality control and we have begun implementing Building Information Modeling software across our entire supply chain, which we expect to significantly improve speed of design and quality control in the future. We have continued with work began last year on upgrading the internal management systems of the company to help manage our rapid growth.”
On the subject of the 2015 Business Plan he explained, “Although our market of mass transit condominiums continues to demonstrate strong demand, we begin the year with a cautious plan due to continuing economic uncertainty, particularly with regard to consumer debts, although ready to increase if we see signs of rebound. Our revenue from real estate target for 2015 is 10,547 million Baht, an increase of 8% over our total for 2014. We have backlog to be transferred in 2015 of 6,220 million Baht, which represents 59% of our revenue target. 2015 is still a ‘gap year’ for Ananda as we don’t fully see the benefits of the IPO capital come through as revenue until next year, when we expect to see revenues grow much more rapidly from 2016 onwards as buildings already launched and sold begin to transfer”
He continued, “Our total presales target for the year is 23,057 million Baht. This will be generated partly from a much expanded launch schedule of 31,553 million Baht in 9 condos and 3 housing launches, an increase of 111% from 2014, as well as from sales from previously launched projects. The total is based on pre-sales of 40% at launch of the new projects, whereas our achieved total in 2014 was 83% so there is scope for upside in the presales target depending on market strength. In 2014 we bought 18 land plots for 10,284 million Baht, so we have additional land plots available to launch should demand prove stronger than expected.”
He added, “We plan to launch 7 new projects with a total project value of 17,045 million Baht in the first and second quarters of this year under the brands “Ashton” and “Ideo Q” including a new brand brand “UNiO Condo”. Ashton Chula-Silom, a luxury high-rise condominium is a joint venture project between Ananda and Mitsui Fudosan with 56 floors and 1,180 units with a project value of 8,267 million Baht starting at 5.9 million Baht per unit and located180 meters from Samyan MRT Station and near the Silom-Saladaeng Interchange Station. And close to the business and diplomatic districts and leading educational institutions such as Chulalongkorn University.”
He continued, “Ashton Residence 41, will be launched with 79 units over 8 floors on Sukhumvit Soi 41, with a project value of 1,361 million Baht and a starting price 15 million Baht located in mid Sukhumvit and located 600 meters from Phomphong BTS Station. It is designed to live in harmony with nature. In addition, Ideo Q Chidlom will be launched with 38 floors, 400 units with a project value of 2,543 million Baht and a starting price 5.9 million Baht. Furthermore, the Unio value condominium brand will be launched for the first time, with 8 floors located in Charunsanitwong Soi 3, 900 meters from Bangsue-Thrapha and Hualumphong-Bangkae. Interchange Station. The company will launch the first project with 1,936 units with a project value of 1,935 million Baht, pricing from 999,000 Baht.”
He added, “We have developed a new housing brand launching for the first time under “Arden”. The first three projects are located on Rama 3, Patanakarn 20 and Ladprao 71. Arden Ladprao 71 has 67 units with a project value of 579 million Baht starting price 7.5 million Baht. Arden Rama 3 has 68 units with a project value of 1,074 million Baht starting price 12.5 million Baht. Arden Patanakarn 20 has 159 units with a project value of 1,287 million Baht starting price 7.5 million Baht.”
He added, “Ananda will have exclusive presales event for the 3 new projects, Ashton Chula-Silom, Ashton Residence 41 and Ideo Q Chidlom for Ananda Members Club and pre-regstered customers via www.ananda.co.th on 21 and 22 March, respectively at the Sofitel So Bangkok Hotel.”
He concluded, “Our cash flow for the year is strong and as a matter of company policy we maintain a cash balance of at least a billion Baht at all times. We have continued to have strong support from our banks and have multiple options in place to fund the cash needs of the company through the year depending on how the situation evolves.”
As such, the Board will submit for approval to the Annual General Meeting a recommendation to increase the dividend by 96% to 9.8 satang from 5 satang last year.
Addendum – Data Sheet
Quarterly Results
- Revenue: 4,247 million Baht Down 30% from 6,105 million Baht in 4Q2013
- Gross Margin: 40% Up from 37% in 4Q2013
- Interest Expense: 74 million Baht Up from 54 million Baht in 4Q2013
- Tax: 135 million Baht Reduced from 223 million Baht in 4Q2013
- Net Profit: 647 million Baht Down 35% from 999 million Baht in 4Q2013
- Net Margin: 15% Down from a net margin of 16% in 4Q2013
Full Year Results
- Revenue: 10,580 million Baht Up 15% from 9,228 million Baht in 2013
- Gross Margin: 38% Up from 37% in 2013
- Interest Expense: 227 million Baht Up from 112 million Baht in 2013
- Tax: 294 million Baht Up from 213 million Baht in 2013
- Net Profit: 1,301 million Baht Up 60% from 812 million Baht in 2013
- Net Margin: 12% Up from a net margin of 9% in 2013
Balance Sheet
- Cash at end of Quarter: 2,477 million Baht Up from 2,309 million Baht in 4Q2013
- Assets: 17,088 million Baht Up from 12,464 million Baht in 4Q2013
- Liabilities 10,175 million Baht Up from 6,586 million Baht in 4Q2013
- Shareholder’s Equity 6,913 million Baht Up from 5,879 million Baht in 4Q2013
- DE Ratio 1.5 times Up from 1.1 times in 4Q2013
- Net IBDE Ratio 0.7 times Up from 0.3 times in 4Q2013
About Ananda Development PCL
Ananda is a publicly listed real estate development company listed on the Stock Exchange of Thailand (Symbol: ANAN)
The company is the leading developer in Thailand of residential condominium projects within 300 meters of mass transit stations. The company also develops landed housing projects in Bangkok.
Ananda’s primary brands are "IDEO" condominiums, situated within 300 meters of a mass transit station, which are targeted at first home buyers and professionals who value modern design, convenience and ease-of-access when choosing a place to live, and “ELIO” condominiums, situated within 600 meters of a mass transit station, which are aimed at those who want the IDEO lifestyle but at a lower cost.
