Sales revenue of the real estate development group of companies “EIKA Group” in 2024. maThe Group’s financial statements show that its profitability increased by streamlining its operations and modernizing project management, which it intends to apply to its planned expansion in foreign markets.
EIKA Group’s sales revenue in 2024 reached 80.8 million, compared to close to 99 million euros in 2023. However, the group’s profit before taxes grew to 12.7 million in 2024, compared to close to 10 million euros in 2023. EIKA Group also increased its equity, which was worth 95.7 million last year, compared to 86.3 million euros in 2023.
The group’s financial results were most significantly influenced by the activities of EIKA Construction and EIKA Development, commercial property rental, apartment and premises sales, and accommodation services – co-living houses “Solo society”, hotel “Hilton”.
EIKA Construction recorded 11 million less revenue in 2024 than in the previous year, but profits increased threefold.
Domas Dargis, CEO of EIKA Group, explained that the group is actually assessing the past two years in general due to the specifics of its operations.
“At the end of 2023, provisions were formed for potential term and price risks, but in 2024 all these projects were completed, and potential risks were managed very well,” he said happily.
According to D. Dargys, profitability in the construction sector does not always correlate with the size of revenue: “The increase in profitability was contributed by increased process efficiency, modernized project management systems and clearly defined operational priorities. The company prioritized higher-value projects rather than turnover – this led to significant profit growth even with decreasing revenue.”
Another important factor in profit growth is fundamentally improved project management.
“In 2024, the company successfully implemented several large-scale projects, the budgets and deadlines of which were strictly controlled – this allowed us to avoid typical losses in the sector and directly contributed to profit growth. We paid particular attention to project management at the company – each stage was consistently planned, monitored and evaluated,” said D. Dargis.
Assessing future prospects, EIKA Group plans to grow its revenue to 98 million euros and maintain profit at a similar level to 2024. Revenue growth is mainly planned from the construction of Phase I of the Rūdninkai Military Campus being implemented by EIKA Construction.
“This year, we plan even more active expansion in the Central and Eastern European region, focusing mainly on the Polish market, where in 2025 we plan to invest in both commercial and residential projects,” said D. Dargis.