Hexaom Announces Strong Financial Results for 2023, Despite Market Challenges

Hexaom, a leading construction and renovation group, reported a robust financial performance for the year ended December 31, 2023, with a significant growth in revenue, operating income, and net income from continuing operations. The company's revenue saw a 6.3% increase, reaching €1,024.4 million, while the current operating income climbed by 20.4% to €38.4 million. Additionally, net income from continuing operations experienced a notable rise of 40.9%, amounting to €33.4 million. This financial strong suit is further underscored by a net cash position of €81 million as of the end of 2023.

Despite facing challenging market conditions, including persistently high inflation in construction costs, Hexaom demonstrated the resilience and effectiveness of its business model. The company attributed its improved operating margins to recovery in net margin on variable costs and strategic modifications to its fixed cost structure to align with market conditions. Each of Hexaom's business sectors contributed to this success, with the Home Building business achieving record revenue of €875.6 million, up 8.1%.

Looking forward, Hexaom remains cautious due to a challenging market landscape, evidenced by a more than 40% decline in new housing orders in 2023. However, the group remains optimistic about maintaining its operating profitability, underpinned by strong fundamentals and diversified revenue streams. For 2024, Hexaom anticipates a potential reduction in production but expects to sustain an operating profit margin between 3% to 4%. The company has declared no dividend for 2023 earnings, prioritizing the preservation of its cash position and fundamental stability amidst the ongoing crisis.