“Conresta’s” revenue grew 66%, with another 28% to be expected
“Conresta”, a general contracting and construction company, ended last year with strong revenue growth. According to the company’s CEO, this year the development of housing and some commercial real estate segments is becoming more risky, but “Conresta’s” concentration in the logistics and industrial segments should increase the revenue by another quarter. In 2017, “Conresta” has generated revenue of 47 million euros, 66% more than in 2016.
“Over the past three years, the company’s earnings and profits have fluctuated, which has distorted the expected steady growth. In 2017 we achieved the results we wanted. The biggest obstacle to even higher growth was the inefficient use of EU investments in 2014 – 2020 and delays in some of the public projects,” says Lukas Laukaitis, the CEO of Conresta.
Laukaitis notes that in 2015, the company had additional projects worth 18 million euros, which resulted in an annual revenue growth of 141%. Part of the projects in 2016 had to be postponed due to problems in other countries. Still, he calls 2017 an exceptional year for the company due to some really significant projects, such as the Pacai Hotel, which was completed this year in the Old Town of Vilnius.
The portfolio includes logistics and industrial projects
“The development of warehousing, industrial buildings and logistics centers also intensified last year. So far, we see the most potential in these areas,” says L. Laukaitis. “Conresta” already has 43 million euros worth of projects in its portfolio this year, and plans to close the year with a turnover of 60 million euros (a 28% increase compared to the year before). “This year we intend to focus on improving and optimizing the company’s internal processes as well as attracting as much qualified workforce as possible,” says the CEO of “Conresta”. In May of this year, the company had 277 employees and the average monthly salary was 1,186 Eur.
Predicts success for the companies who strive to be unique
Asked how he assesses the real estate market prospects for the next few years, L. Laukaitis believes that entrepreneurs who offer unique solutions will benefit the most. “Our portfolio mostly consists of industrial and warehouse projects. So, unlike the housing or commercial markets, which can become a bit riskier, warehouse and industrial real estate will undoubtedly attract more investment and has a lot of potential,” the interviewer predicts.
100% of |”Conresta” is owned by “Hastus”, a company incorporated in Estonia. It is owned in equal shares by Edvardas Šeženis, Jūratė Laukaitienė and Tomas Grėbliauskas. “Hastus” revenue for 2016 was 28.4 million euros.