PRESS RELEASE

from KAUFMAN & BROAD (EPA:KOF)

Kaufman & Broad SA: 1ST QUARTER 2024 RESULTS

Kaufman & Broad SA
Kaufman & Broad SA: 1ST QUARTER 2024 RESULTS

09-Apr-2024 / 18:23 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


  

Press  release

  Press release

 Paris, 2024, April 9th

 

1st quarter 2024 results

 

 

  • 10% increase in volume orders
  • Still very solid financial structure: Positive net cash (a) of €190.2M
  • Confirmation of guidance for the 2024 financial year
  • Dividend of €2.40 proposed to the Shareholders' Meeting of May 6

 

 

  • Main elements of commercial activity (Q1 2024 vs. Q1 2023)
  • Total orders:

254.2 vs €269.9M incl. VAT

Of which housing: 252.7 vs €234.1M incl. VAT

1,123 units vs 1,021 units

  • Take-up period Housing: 4.1 vs 6.9 months (b)

 

  • Main financial items (Q1 2024 vs. Q1 2023)
  • Revenue : 228.0 vs. €586.5M

Of which housing: 197.2 vs €229.3M

  • Gross margin : 45.9 vs. €85.0M
  • EBIT margin (c) :  7.4 % vs. 8.4%
  • EBIT : 16.8 vs. €49.6M
  • Attributable Net income:

11.0 vs. €31.6M

  • Net cash (c ) : €190.2M vs. € 121.6M
  • Financial capacity : €615.3M vs. €542.7M 

 

  • Main development indicators (end Feb. 2024 vs. end Feb. 2023)
  • Total backlog : 2,586.1 vs. €2,890.4M

 Of which housing: 1,993.3 vs. €2,189.2M

  • Housing portfolio: 

 32,684 vs. 34,429 units

Kaufman & Broad SA today announces its results for the 1st quarter of fiscal 2024 (from December 1st to 29th February 2024). Nordine Hachemi, Chairman and Chief Executive Officer of Kaufman & Broad, said:

 

« In a housing market marked by an estimated 50% decline in volume orders (d), Kaufman & Broad recorded a 10% increase in volume orders. This increase observed in the first quarter alone does not allow us to conclude that there is a recovery but to note the interest of buyers when an adapted offer is proposed to them.

 

The take-up period of 4.1 months remains significantly lower than that of the market, estimated at more than 20 months.

 

Kaufman & Broad will maintain with application this policy of profitable development which, for many years, has favored housing quality and economic performance over, seeking market share.

 

As part of its policy to develop industrial and commercial brownfield, Kaufman & Broad launched the construction of a programme of 670 housing units in Toulouse, 75% of which were reserved at the acquisition date.

 

The change in revenue was mainly due to the lower contribution from the Austerlitz operation, which continues in line with the announced timetable,

 

Kaufman & Broad maintains its profitability with a net margin of 4.8% and its financial structure remains extremely solid. At the end of February 2024, positive net cash (a) stood at €190.2M and financial capacity at €615.3M.

 

The crisis in the sector is above all a supply crisis, as the continuous decline in the allocation of building permits since 2018 has led to irrational pressure on the price of land, which has not been absorbed to date. Thus, housing production is down significantly while demographic and sociological factors continue to fuel sustained and unmet demand. Rebalancing these various factors should lead to a market adjustment in the coming half years.

 

Kaufman & Broad confirms the guidance provided at the end of January. For the whole of 2024, the group's revenue is expected to be around 1.1 billion euros, the difference compared to 2023 being explained by the base effect of the Austerlitz operation. The recurring operating income ratio is expected to be between 7% and 7.5%. The Group is expected to remain in a positive net cash position (a) after taking into account the payment of a dividend of €48M for 2023, i.e. €2.40 per share, subject to approval by the Shareholders' Meeting of May 6 ».

 

 

 

  • Sales Activity

 

  • Housing Segment

 

In the 1st quarter of 2024, housing orders amounted to €252.7M (including VAT), up 7.9% from €234.1M in 2023. In volume terms, they stood at 1,123 homes in 2024 compared to 1,021 homes in 2023, an increase of 10.0%.

 

The take up period[1] was 4.1 months 2024, 1st quarter, down of 2.9 months from 6.9 months in 2023.

 

The commercial offering, with 95% of homes located in tight areas (A, ABIS and B1), amounted to 1,517 homes at 2024, 29th February (2,360 homes at the end of February 2023).

 

Customer Breakdown

 

Orders in value (including VAT) for first time buyers accounted for 12% of sales, compared to 8% over the same period in 2023. Second time buyers accounted for 8% of sales, compared with 5% in 2023.

Orders made to investors accounted for 9% of sales (of which 2% for Pinel’s scheme alone), compared with 11% in February 2023 (of which 5% for Pinel alone). Block sales accounted for 72% of orders in value (including VAT), compared with 75% over the same period in 2023.

 

  • Commercial Property

 

As of 2024, February 29th, the commercial Property division recorded net orders of €1.6M (including VAT) compared to €24.5M (including VAT) net orders for the same period in 2023.

 

Kaufman & Broad currently has 178,100 sq. m. of office space and about 107,200 sq. m. of logistics space on the market or under study. In addition, 119,500 sq. m of office space is currently under construction or in start-up in the coming months. Lastly, the company has nearly 13,500 sq. m. of office space to be built in MOD (delegated project management).

 

  • Leading indicators of business activity and growth

 

As of 2024, February 29th, Housing Backlog stood at €1,993.3M (excluding VAT) compared to €2,189.2M (excluding VAT) for the same period in 2023, i.e. 25.8 months of activity compared to 22.9 months of activity at the end of February 2023. As of the 1st quarter of 2024, Kaufman & Broad had 126 housing programmes in the process of being marketed, representing 1,517 housing units (143 programmes and 2,360 housing units as of the end of February 2023).

 

The Housing portfolio represents 32,684 units. At the end of February 2024, it represented over 6 years of commercial activity.

 

In addition, 88% of the housing portfolio is located in tight areas, representing 28,843 housing units as of 2024, February 29th.

 

In the 1st quarter of 2024, the group plans to launch 19 new programmes for 1,083 units, of which 3 in the Paris region representing 214 units and 16 in the Regions representing 869 units.

 

At the end of February 2024, the Backlog of the Commercial Property was €592.8M (excluding VAT) compared to €691.7 M (excluding VAT) for the same period in 2023.

  • Financial performance

 

  • Activity 

 

Total revenue amounted to €228.0M (excluding VAT), compared to €586.5M in the same period in 2023.

 

Housing division revenue amounted to €197.2M (excluding VAT), compared to €229.3M (excluding VAT) in 2023. It represents 86.5% of the group's revenue.

 

Revenue from the Apartments business was €181.7M (excluding VAT) (vs. €213.6M (excluding VAT) at end February 2023). Revenue for the Commercial Property was €27.2M (excluding VAT), compared to €353.9M (excluding VAT) over the same period in 2023. Other activities generated revenues of €3.7M (excluding VAT) (including €2.0M in revenues from the operation of student residences) compared to €3.4M (excluding VAT) (including €1.9M in revenues from the operation of student residences).

 

  • Profitability data 

 

In the 1st quarter of 2024, gross margin amounted to €45.9M, compared to €85.0M in 2023. The gross margin rate was 20.1% compared to 14.5% in the same period of 2023.

 

Recurring operating expenses amounted to €29.1M (12.8% of sales), compared to €35.4M in the same period in 2023 (6.0% of sales). Recurring operating income amounted to €16.8M, compared to €49.6M in 2023. Recurring operating income stood at 7.4%, compared with 8.4% in 2023.

 

At the end of February 2024, Consolidated net income amounted to €14.3M, compared with the same period in 2023 when it amounted to €34.7M. Non-controlling interests amounted to €3.2M in 2024, 1st quarter compared to €3.1M in 2023.

Net income attributable was €11.0M, compared with €31.6M in 2023.

 

  • Financial structure and liquidity

 

The positive net cash position (excluding IFRS 16 debt and Neoresid put debt) at 2024, February 29th was €190.2M, compared with a positive net cash position (excluding IFRS 16 debt and Neoresid put debt) of €121.6M at the end of February 2023 and €180.5M at the end of November 2023. Cash and cash equivalents amounted to €365.3M at 2024, February 29th, compared with €292.7M at the end of February 2023 and €350.0M at 2023, November 30th. Financial capacity amounted to €615.3M at 2024, February 29th, compared with €542.7M at 2023 February 28th and €600.0M at the end of November 2023.

 

Working capital requirements amounted to (78.1) million euros at 2024, February 29th, or -7.4% of sales, compared with 50.6 million euros at the end of February 2023 (or 3.1% of sales) and (80.8) million euros at 2024, November 30th, or -5.7% of sales.

 

 

  • Dividend

 

The Board of Directors of Kaufman & Broad SA will propose to the Shareholders' Meeting of 2024, May 6th the payment of a dividend of 2.40 € per share.

 

 

 

 

 

 

  • Outlook 2024

 

For the whole of 2024, the group's revenue is expected to be around 1.1 billion euros, the difference compared to 2023 being explained by the base effect of the Austerlitz operation. The recurring operating income ratio is expected to be between 7% and 7.5%. The Group is expected to remain in a positive net cash position (a ) after taking into account the payment of a dividend of €48M for 2023, i.e. €2.40 per share, subject to approval by the Shareholders' Meeting of May 6.

 

(a)) excluding IFRS 16 and Put Neoresid debt

 

 

 

 

This press release is available at www.coporate.kaufmanbroad.fr

 

  • Next periodic information date:
  • Thursday, 11 July 2024: Publication of the 1st semester 2024 results (after the stock market)

Presentation of results for the period

 

Mr. Nordine HACHEMI, Chairman and Chief Executive Officer and Mr. Bruno Coche, Chief Financial Officer, will comment on the results of the period and answer questions at a conference call in French with simultaneous translation into English.

 

The presentation of the results will take place in French with simultaneous translation into English on:

Wednesday, 2024, April 10th at 8.30 CET

 

Registration for the presentation of the results for the period must be made by request at:

infos-invest@ketb.com

 

  • To follow the live presentation at the web conference you will receive a link (in French or English) *
  • To follow the live presentation at the conference by phone you will receive the number for the desired language (French or English)

* Activation of accesses from 8: 00, the connection requiring registration via a form

 

The Webcast media will be available ½ hour before the presentation starts at www.kaufmanbroad.fr/finance/publications-financieres/

 

Contacts

 

Chief Financial Officer

Bruno Coche -01 41 43 44 73/infos-invest@ketb.com

Press Relations

Primatice: Thomas de Climens -06 78 12 97 95/thomasdeclimens@primatice.fr

Kaufman & Broad: Emmeline Cacitti -06 72 42 66 24/ecacitti@ketb.com

 

About Kaufman & Broad

For more than 55 years, Kaufman & Broad has designed, developed, constructed and marketed apartments, single family homes, managed residences, shops, business premises and office buildings.

A developer and a real urban assembler alongside local authorities to design new neighbourhoods and major urban projects, Kaufman & Broad is one of the first French Builders and Builders by combining its size, profitability and the power of its brand.

Together, let us create a more virtuous city.

For more information: www.kaufmanbroad.fr   

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