Arricano shows double-digit growth in financial performance for the second consecutive year
On September 22, 2017, Arricano Real Estate PLC has published the Consolidated Interim Shortened Financial Report for the first half of 2017. According to the report for the six months of this year, as of June 30, 2017, Arricano Real Estate PLC shows successful results. The double-digit growth in the reporting currency (USD) for the second consecutive year indicates the company's development. The total revenue in the reporting currency (USD) has increased by 18.7% to USD 12.9 million (compared to USD 10.9 million in the first half of 2016). The profit from the core business (including revaluation surplus) has increased by 42.8% to USD 24.0 million (compared to USD 16.8 million in the first half of the year). The profit before taxation has increased more than 2 times and amounted to USD 18.4 million (compared to USD 8.3 million for the first half of 2016).
«After we have shown the growth in revenues in USD (reporting currency) + 13.3%, according to the results of 2016, I suggested that the team should reach the rate of + 20% in 2017», - comments Mykhailo Merkulov, the CEO of Arricano Real Estate PLC. - «The proposal was perceived ambiguously, since mathematically this growth was not obtained by any budget scenario. However, paying more attention to quantitative and qualitative analysis, we have found opportunities for growth and, thanks to the company's excellent operating efficiency, immediately implemented them».
The total fair valuation of Arricano's investment property portfolio as of June 30, 2017 was USD 197.9 million (compared to USD 177.7 million as of December 31, 2016). The debt load of the group as of June 30, 2017 remains moderate: the share of loans in the investment property portfolio as of June 30, 2017 is 23.8%, compared to 28.5% as of December 31, 2016.
«The company's activities results for the first half of 2016 clearly show the group's stable financial position», - said Tetiana Novytska, the Financial Director of Arricano Real Estate PLC. - «Today, the productive work with creditor banks and the search for various types of financing for our new projects remain to be the company's Financial Department's priority directions of work. An integral part of corporate finances' successful management in Arricano is the maximum automation of business processes, as well as the active development of BI-solutions and analytics using Big Data».
According to the results of the first half of 2017, Arricano shopping malls' occupancy rate for retail space is 98.9% (compared to 98.3% for the first six months of 2016). During the first half of 2017, 52 new lease agreements were signed, compared to 82 in the first half of 2016.
The company notes that Arricano today has a powerful professional team that develops the company's facilities, fulfilling not only the planned indicators for occupancy, number of space leases and contracts concluded, but also increasing the positive consumer experience in the interaction between all business process participants.
«I'll tell you a secret: no one of the company's employees have an «increase in attendance» indicator in KPI of as such», - says Mykhailo Merkulov, the CEO of Arricano. - «Now, it is much more important to improve the Consumer-Brand-Shopping Mall ecosystem effectiveness, so that the guest could feel himself more convenient and comfortable there. In this case the brand's turnover and the shopping mall's rental income are growing. Taking into account that the consumer's behavior is rapidly changing, we are trying to faster implement technological solutions, in order to meet these changes and to avoid our guests' disappointment».
Arricano is planning to further continue the systematic work, which is aimed at sustainable development of the company and the growth of business indicators.