Online Reporter
Sikhulekelani Moyo,[email protected]
LISTED property group, WestProp Holdings Limited, has recorded an 80 percent increase in revenue driven by higher demand for residential real estate.
In a statement accompanying the group’s abridged audited consolidated financial statements for the year ended December 2024, WestProp board chair Dr Michael Louis said the group experienced a significant 80 percent increase in revenue, rising from US$16,09 million in 2023 to US$29,05 million in 2024.
“This growth was driven primarily by Pomona City Residential Estate, which contributed US$15,61 million, followed by Pokugara Residential Estate at US$9,42 million, and Millennium Heights at USD$4,02 million,” said Dr Louis.
“The higher revenue reflects increased demand for residential real estate and successful progression in project execution.
“Gross profit increased substantially by 90 percent from US$5,88 million in 2023 to US$11,15 million in 2024, showcasing enhanced operational efficiencies with a greater pro rata reduction in cost of sales to US$17,89 million (from US$10,21 million in 2023).”
The group’s ability to manage construction and development costs while scaling revenue indicates strong project execution and market positioning.
Dr Louis said one of the key drivers of profitability was the US$18,84 million fair value gain on investment property, though notably lower than the US49,51 million gain recorded in 2023.
He said this suggests a more stabilised real estate valuation environment compared to the previous year, when adjustments were high.
“The group has successfully commissioned its glass and aluminium fabrication plant, TrustProp Aluminium, focused on producing high-quality materials tailored for the construction industry,” he said.
“This facility will not only cater to internal project demands but will also serve external clients, ensuring better quality, cost efficiency, durability, and aesthetic excellence in its offerings.
“Additionally, the group has established BrickFusion Manufacturing, a brick-moulding factory designed to mitigate delays in brick supply while maintaining superior material quality for its developments.”
This strategic initiative aligns seamlessly with the group’s ambitious “One Billion Bricks by 2050” Vision.
Dr Louis said the group’s ability to navigate these macroeconomic changes while identifying and capitalising on growth opportunities underscores its resilience, adaptability, and strategic acumen within a dynamic environment.
Despite strong top-line growth, Dr Louis said profit for the year decreased slightly to US$18,26 million, compared to US$39,43 million in 2023.
He said this decline is mainly attributable to the lower fair value adjustments on investment property, as well as increased operating expenses (up to US$8,64 million, from US$5,18 million) in line with the groups expansion strategy to scale up and enhance sales and the resultant pipeline has been increased to US$175 million as well as key acquisition and investments in new subsidiaries.
“However, at US$23,60 million, profit before tax remained robust,” he said.
