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Practic posts 29% drop in net profit in 2023

Romanian real estate leasing company Practic [BSE:PRBU] said on Monday it recorded a net profit of 26.9 million lei ($5.8 million/5.4 million euro) in 2023, down from 37.8 million lei in the previous year.


Practic's net turnover increased to 42.3 million lei last year, from 37.8 million lei in 2022, the company said in a statement filed with the Bucharest Stock Exchange, BVB.


Practic attributed the growth in turnover to multiple factors, such as maintaining the occupancy rate of its streetside commercial spaces around the 98% mark, diversifying its tenant mix, and identifying solutions for renting out office buildings located in non-optimal areas.


The company's EBITDA decreased to 34.3 million lei in 2023, from 48.5 million lei in the previous year.


Practic owned totat assets worth 481.7 million lei at end-2023, making for a rate of return on assets of 5.58%, down from 7.61% a year earlier. Total liabilities stood at 44.8 million lei, for a solvency ratio of 10.75, up from 10.09 in 2022.


Practic was founded in 1962 as a state-owned company that managed food stores in Bucharest. The company was privatised in 1990 and started trading on the BVB in 1996.


Practic’s shares last traded on March 22, closing 10.43% lower at 1,030 lei on the Bucharest bourse.