Kazakhstan's largest developer BI Development earned KZT 56 billion in net profit in the first half of the year, up 14% year-on-year. The company's main income came from residential real estate sales, reports infohub.kz.
The company's financial statements, published on AIX, were noted by economist Arman Batayev. Net profit for the first half amounted to KZT 56 billion (+14% YoY). Revenue grew by 7.3% to KZT 341 billion. Cost of sales increased by KZT 7.8 billion to KZT 238.5 billion.
Selling expenses rose 9% to KZT 10.4 billion. Administrative expenses increased significantly by KZT 5.5 billion to KZT 35.6 billion. Other operating income also grew substantially to KZT 6.3 billion, while other operating expenses reached KZT 8.7 billion.
Of total revenue, residential real estate sales accounted for KZT 309 billion (up 9.3%), while commercial properties brought in KZT 29 billion (down 13.7%). 79% of revenue was generated in Kazakhstan.
BI Development's assets grew 19.2% to KZT 2.35 trillion. The value of its properties under construction is estimated at KZT 957 billion (up 50%), and land plots at KZT 405.1 billion (down 4%). Despite the difficulties mentioned by its founder Aydin Rakhimbayev, the company continues to increase construction volumes.
Economist Batayev noted that BI Development has a large amount of advances from buyers. Contract liabilities grew from KZT 1.28 trillion to KZT 1.55 trillion, or 21.5%. These are prepayments from buyers for real estate that will be recognized as revenue as projects are completed.
On its balance sheet, BI Development holds KZT 97.6 billion in investments in a private fund, compared to KZT 78.6 billion at the end of last year. This fund invests in the shareholders' international business, with the majority of investments concentrated in the UAE and the USA.
The report states that BI Development is part of BI Group. The ultimate controlling party is Aydin Rakhimbayev, who ranks ninth among the wealthiest Kazakhs with a fortune of $1.1 billion.
Earlier, Aydin Rakhimbayev said that Kazakhstan's housing market may start recovering no earlier than in a year or a year and a half. He noted that construction companies are operating under reduced demand and do not yet see prerequisites for a quick market turnaround.