Hepsor AS Achieves Robust Revenue Growth in Q2 2025
Hepsor's consolidated revenue for the second quarter of 2025 reached an impressive 13.9 million euros, a notable increase from 5.2 million euros in the same quarter of the previous year. Additionally, the revenue for the first half of the reporting year achieved 22.1 million euros compared to 7.4 million euros during the first half of 2024. This surge in revenue demonstrates the effectiveness of Hepsor's strategic initiatives and customer engagement.
Profitability Improvement Highlights
The company reported a net profit of 0.4 million euros for Q2 2025, bouncing back from a net loss of 0.6 million euros during Q2 2024. Of this profit, 0.02 million euros is attributable to the owners of the parent company. For the first half of 2025, Hepsor's net profit totalled 0.3 million euros, contrasting with a net loss of 1.5 million euros in the same period last year.
Impact of Dividend Distribution
The net loss reported by the parent company was influenced by a 0.3 million euro income tax expense resulting from dividend distributions approved by the General Meeting of Shareholders of Hepsor. This illustrates the ongoing business strategy focusing on rewarding shareholders while managing operational costs.
Successful Property Sales and Developments
During Q2 2025, Hepsor Fortuuna OÜ, a subsidiary, executed a successful property transaction by selling three properties on Paevälja street to the 50% joint venture Hepsor SOF OÜ for 2.7 million euros plus VAT. This transaction is projected to yield a profit of 0.8 million euros, with 0.4 million euros recognized in Q2. The remaining profit will be capitalized once apartments are sold at the project's completion.
Residential Development Projects Overview
As of June 30, 2025, Hepsor boasts nine residential developments available for sale, five of which are completed, while the remaining four are either under construction or slated to start construction this year. To date, 355 new homes and 453 m² of commercial space have been created. Remarkably, 81% of the homes totaling 288 units have been sold, reflecting steady customer demand despite current economic uncertainties.
Upcoming Residential Projects
Looking ahead, the company delivered 102 homes in the first half of 2025, a marked improvement from 46 homes in the first half of 2024. This includes 60 homes handed over in Q2, significantly up from 34 the previous year. In Tallinn, preparations for the Manufaktuuri Factory development project have begun, which will include 152 homes scheduled for completion by autumn 2027.
Commercial Real Estate Ventures
In 2024, Hepsor initiated the construction of the StokOfiss U34, a multifunctional commercial building located in Riga, with a leasable area of 8,740 m². As of late June 2025, approximately 65% of this area is already leased. The expected completion date for this project is the end of July 2025, after which tenants will start moving in.
Lease Agreements Success
Lease agreements continued for the P113 Health Centre property owned by Hepsor P113 OÜ. As of June 30, 2025, 98% of this property’s leasable area is leased out, indicating strong demand for commercial space.
Strategic Growth Plans Ahead
Hepsor aims to expand its development portfolio significantly. The company plans to acquire a new property development at Starta iela 17 in Riga, which will feature three 14-storey apartment buildings, aiming for a total of approximately 250 apartments and a net volume of 14,500 m². Construction is projected to initiate by the end of 2026, with a total investment nearing 40 million euros.
Broader Development Focus
In Tallinn, in addition to the activities in the Manufaktuuri Quarter, Hepsor focuses on a broader development area in Lasnamäe. A recent sale of properties on Narva mnt valued at 6.3 million euros to Hepsor SOF OÜ is expected to generate a profit of 2.8 million euros, with construction on approximately 300 homes commencing in 2026.
Management Changes
Recently, important changes have been announced in Hepsor's management structure. Martti Krass has joined the Management Board, having substantially contributed to the company’s growth in Latvia. Additionally, Henri Laks has joined the Supervisory Board to support the company’s strategic development.
Investor Information
Investors interested in further details can access the full unaudited consolidated interim report for Q2 and the first six months of 2025 on Hepsor's official website. The company continues to strategize and innovate within the residential and commercial real estate sectors, maintaining a strong foothold in the Baltic market.
Frequently Asked Questions
What was Hepsor AS's revenue for Q2 2025?
Hepsor AS reported a revenue of 13.9 million euros for Q2 2025.
How did the company's net profit change from Q2 2024 to Q2 2025?
The company transitioned from a net loss of 0.6 million euros in Q2 2024 to a net profit of 0.4 million euros in Q2 2025.
Is there any new development being planned by Hepsor AS?
Yes, Hepsor is planning to acquire a new property at Starta iela 17, featuring three residential buildings.
What is the projected completion date for the Manufaktuuri Factory development?
The construction is set to be completed by autumn 2027.
Who is the current member of the Management Board of Hepsor AS?
Martti Krass is currently a member of the Management Board, having made significant contributions to the company's operations.
