Earnings warning: Arco Vara raises profit forecast 33% higher

Arco Vara, the developer of integrated residential areas, has announced to the stock exchange that it is raising its profit forecast for the full year by 33% to EUR 3.6 million. As recently as the third quarter of last year, the company was expecting a 2023. a profit of €2.7 million for the year.

According to Miko Niinemäe, CEO of Arco Vara, the company’s turnover remains as expected. to €18.2 million. “There are no significant changes in the behaviour. The increase in profit comes from lower than budgeted costs. The majority of this is due to the final construction price of the Rannakalda development remaining below the budgeted level,” Niinemäe explained.

Two weeks ago, Arco Vara’s construction general contracting subsidiary Arco Tarc announced the early completion of the Rannakalda development project in the Kodulahe quarter, despite volatile market conditions. Arco Tarc started construction works on the Kodulahe quarter at Lammi 8, Rannakalda development, in 2022. The phase, initially planned for the first quarter of this year, will be completed ahead of schedule in 2023. at the end of the year.

In addition to the savings from the Rannakalda development, Arco Vara also found savings in corporate overheads. These are not yet audited data. Audited 2023. Arco Vara 4 publishes its annual report for 2011. April.

Since the beginning of last year Arco Vara discloses in its quarterly reports its turnover and profit forecasts for the coming quarters.