Calgro M3 revenue jumps 50%

Calgro M3, a leading property development company in South Africa, has reported a significant increase in revenue of 50% in the year up to February. The company's CEO, Vickers Lackajana, attributes this growth to debt-cutting strategies and new infrastructure plans that have allowed them to navigate a challenging trading environment successfully. In a recent interview with CNBC Africa, Lackajana shared insights into the company's performance and future outlook. According to Lackajana, the company has been focused on cost-cutting measures and operational efficiencies over the past three years, which have led to improvements across various business lines. These efforts have resulted in a 20% increase in gross profit margins, despite a 50% revenue growth. The company's headline earnings have also hit the third-highest level in its history. Lackajana emphasized the importance of sustainability and empowerment initiatives within the company, highlighting their commitment to gender transformation and environmental measures. Calgro M3's development business has seen significant success, with revenue diversification across multiple projects in Western Cape and Harte. The company has a pipeline of over 15 billion, with additional projects in the works that will bring more housing opportunities. On the memorial park side, Calgro M3 has expanded its portfolio, adding new locations and increasing the number of gravesites, demonstrating a long-term growth strategy. In response to consumer pressures and market uncertainties, Calgro M3 is focusing on the entry-level market segment, offering affordable housing options starting from 440,000 rand. Despite concerns about inflation, the company has managed to keep construction costs below national inflation rates and remains optimistic about its growth prospects. Looking ahead, Lackajana believes that gross profit margins will continue to improve, aiming for a range between 20% and 25%. However, the company remains cautious about the impact of potential interest rate hikes on affordability and sustainability. By implementing energy-saving initiatives and maintaining a focus on operational efficiencies, Calgro M3 aims to ensure long-term viability and provide quality housing solutions to its customers.