Dubai developer says profit level hit by the cost of sales but still higher than previous quarter
Damac Properties’ net profit fell 45 percent in the first quarter of 2018 to AED 483.9 million ($131.7 million) after an increase in the cost of sales, according to a regulatory filing with the Dubai Financial Market.
In Q1 2017, the company recorded AED 880.4 million in net profit ($239.6 million). The Q1 2018 earnings reported in the DFM filing were significantly below Bloomberg analyst estimates which forecast an average of AED 650 million ($176.9 million).
The net profit, however, was still above the AED 459 million ($124.9 million) recorded in Q4 2017.
According to the document, the cost of sales during Q1 2018 rose from AED 887.3 million ($241.5 million) in Q1 2017 to AED 1.13 billion this year ($307.6 million).
Additionally, the company reported revenues of AED 1.89 billion ($514.5 million), down from AED 1.94 billion in the same period last year ($528.1 million).