PRESS RELEASE

from KAUFMAN & BROAD (EPA:KOF)

Kaufman & Broad SA: 2024 Annual results

Kaufman & Broad SA
Kaufman & Broad SA: 2024 Annual results

30-Jan-2025 / 18:40 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


               

S Press release

  Press release

 Paris, 30 January 2025

 

2024 ANNUAL RESULTS
 

 

 

  • Results in line with the guidance announced at the beginning of the financial year 2024
  • Very solid financial structure: Positive net cash(a ) of €397.6M
  • Proposed dividend for 2024 of €2.20 per share
  • Expected operating margin rate up in 2025

 

 

 

 

 

  • Main elements of commercial activity

 

  • Total reservations:  1,205.7 M  incl.  VAT

 Of which housing: €1163.3M incl.  VAT for 5,543 units

Of which Commercial property: €41.8M incl. VAT

 

  • Housing take-up rate: 3.0 months (b)

 

  • Key financial data

 

  • Revenue: €1076.8M Including housing: €908.0M

 

  • Gross margin: €208.0M
  • ROC (EBIT): €80.8M
  • EBIT margin (c)  : 7.5%
  • EBIT: 45,0 €M
  • Net cash (a) : € 397.6 M 

 

  • Key growth indicators

 

  • Total backlog: € 2,497.0 M excl. VAT

Of which housing: €1987.8Mexcl.  VAT

  • Land portfolio Housing: 30,272 units 

Kaufman & Broad SA today announces its 2024 results (from December 1st 2023 to 30 November 2024). Nordine Hachemi, Chairman and Chief Executive Officer of Kaufman & Broad, notably said:

 

‘Kaufman & Broad's 2024 results are in line with the guidance announced earlier in the fiscal year. They demonstrate the strength of its business model and its ability to generate cash.

 

In fiscal 2024 as a whole, Kaufman & Broad's home reservations in value terms increased by 7.8%. The increase was 4.0% in volume terms, compared with an estimated 17% decline over the same period (d) across the entire housing market.

 

The reservations continued to be supported by buyer occupants, whose share grew by 6 points year on year in volume bookings and by 7 points in value bookings. This trend thus confirms the priority given for several years by Kaufman & Broad to housings that prioritise, in addition to quality, the careful consideration of their purchasing power.

 

The end of the Pinel system has only a limited impact on the level of reservations in 2024, which represented only 7% of the reservations in volume and value.

 

Kaufman & Broad's program take-up rat of 3.0 months is still well below the estimated market take-up rate of over 21 months(e).

 

The continuation of the high pace of our sales demonstrates the adaptation of our supply to a demand that remains strong. However, the market is entering a phase of housing shortage fueled mainly by the decline in the allocation of building permits.

 

Concerning the commercial real estate, the Austerlitz project (A7/A8) continues according to the announced schedule. In addition, the building permit for the latest generation 30,300 sq. m of Commercial property campus currently underdevloppement in Marseille has been purged. Finally, a logistics platform of approximately 13,000 sq. m was sold in VEFA in Beaucaire city.

 

The group has an activity aligned with its objectives and public commitment SBTi 2030 in terms of reducing carbon emissions (generalization of low carbon energy systems and 1,600 wood housing in the process of authorization or construction).

 

Considering the year as a whole, gross margin and trading operating margin rates were in line with expectations. They confirm the choice made in 2018 to focus on economic performance rather than market share.

 

Kaufman & Broad's financial structure remains extremely strong. At the end of November 2024, gross cash amounted to 502.9 million euros. The net cash(a) amounts to 397.6 million euros, about half of which will be used for the completion of the Austerlitz Project scheduled to be delivered in 2027. In addition, Kaufman & Broad has 200 million euros of unused RCF line to date.

 

The group is thus in position to take full advantage of the recovery in a healthy market.

 

The rating agency Fitch Ratings confirmed at the end of August the ‘BBB-’ Investment Grade rating with stable outlook of Kaufman & Broad SA. This rating has been constant since 2022. Fitch Ratings' confirmation of this rating highlights the strength of the group's financial structure.

 

For the full year 2025, the group's revenue is expected to increase by approximately 5%.  The recurring operating income ratio is expected to be between 7.5% and 8.0%. The Group is expected to remain in a positive net cash position(a) after taking into account the payment of a dividend of €43.6M for fiscal year 2024, i.e. €2.20 per share, subject to approval by the Shareholders' Meeting of May 6, 2025.  

 

 

  • Sales Activity

 

  • Housing Segment

 

In 2024, housing reservations in value amounted to 1163.3 million euros (including VAT), compared to 1079.4 million euros over the same period in 2023, an increase of 7.8%. In terms of volume, they stood at 5,543 housing units in 2024, up 4.0% from 5,332 in 2023.

 

The program take-up period was 3.0 months on November 30, 2024 (over twelve months), down nearly 2 months compared to the same period in 2023 (4.8 months).

 

The commercial offering, with 97 per cent of units located in tight areas (A, ABIS and B1), amounted to 1,384 units on 30 November 2024 (2,114 units at the end of November 2023).

 

Customer Breakdown

 

Orders in value (including VAT) for first time buyers accounted for 17% of sales, compared to 11% over the same period in 2023. First time buyers accounted for 6% of sales in 2024, compared with 4% in 2023.

 

Orders made to investors accounted for 13% of sales (of which 7% for Pinel alone), compared with 13% at the end of November 2023 (of which 4% for Pinel alone). Block sales accounted for 65% of orders in value (including VAT), compared with 72% over the same period in 2023.

 

  • Commercial Property 

 

As of 30 November 2024, the commercial division recorded net bookings of 41.8 million euros (including VAT) compared to 33.7 million euros (including VAT) for the same period in 2023.

 

Kaufman & Broad currently has 58,800 sq. m of office space and approximately 122,100 sq. m of logistics platform on the market. The group has 18,200 sq. m of office space and approximately 61,800 sq. m of logistics platform under study. In addition, 123,800 sq. m of office space and nearly 13,000 sq. m of logistics are currently under construction. Finally, the company has nearly 13,500 sq. m. of office space to be completed in DPM (delegated project management) to be signed.

 

  • Leading indicators of business activity and growth

 

As of 30 November 2024, Housing Backlog stood at 1,987.8 million euros (excluding of VAT) compared to 2,053.4 million euros (excluding of VAT) for the same period in 2023 and represented 26.3 months of activity compared to 25.7 months of activity at the end of November 2023. On November 30, 2024, Kaufman & Broad had 114 housing programs under marketing, representing 1,384 housing units (131 programs and 2,114 housing units as at the end of November 2023).

 

The Land portfolio housing represents 30,272 units and is down 11.1% compared to the end of November 2023 (34,069 units). At the end of November 2024, it represented over 5 years of commercial activity.

In addition, 89% of the housing portfolio is located in tense areas, representing 26,935 housing units as of 30 November 2024.

 

In the 1st quarter of 2025, the group plans to launch 19 new programs for 1,091 units, of which 8 in the Paris region representing 549 units and 11 in the Regions representing 542 units.

 

As of November 30, 2024, the Commercial property Backlog amounted to 509.2 million euros to be excluding VAT compared with € 622.6 million excluding VAT for the same period in 2023.

 

  • Financial performance

 

  • Activity 

 

Total revenue amounted to 1076.8 million euros (excluding VAT), compared to 1409.1 million euros in the same period in 2023.

 

Housing revenue amounted to 908.0 million euros (excluding VAT), compared to 957.8 million euros (excluding VAT) in 2023. It represents 84.3% of the group's revenue.

 

Revenue from the Apartments business was 830.1 million euros (excluding VAT) (vs. 883.0 million euros (excluding VAT) at the end of November 2023). Revenue for the Commercial property division was 151.6 million euros (excluding VAT), compared to 437.5 million euros (excluding VAT) over the same period in 2023. Other activities generated revenues of 17.2 million euros (exclusive of tax) (including 8.3 million euros in revenue from the operation of student residences) compared to 13.8 million euros (excluding VAT) (including 7.4 million euros in revenue from the operation of student residences).

 

  • Profitability data 

 

On November 30, 2024, gross profit amounted to 208.0 million euros, compared with 257.2 million euros in the same period in 2023. The gross margin was 19.3% compared to 18.3% in the same period of 2023.

 

Current operating expenses amounted to 127.3 million euros (11.8% of sales), compared to 147.9 million euros in the same period in 2023 (10.5% of sales). Current operating income amounted to 80.8 million euros, compared to 109.3 million euros in 2023. Current operating income stood at 7.5%, compared with 7.8% in 2023.

 

Operating profit amounted to 84.2 million euros, compared to 109.3 million euros in 2023.

 

At the end of November 2024, consolidated net income amounted to 57.8 million euros compared with the same period in 2023 when it amounted to 76.5 million euros. Non-controlling interests amounted to 12.8 million euros in 2024, compared with 16.3 million euros in 2023.

 

Attributable Net income was 45.0 million euros, compared with 60.2 million euros in 2023.

 

  • Financial structure and liquidity

 

The positive net cash position (excluding IFRS 16 debt and Neoresid put debt) on 30 November 2024 was 397.6 million euros, compared with a positive net cash position (excluding IFRS 16 debt and Neoresid put debt) of 180.5 million euros at the end of November 2023. Cash and cash equivalents amounted to 502.9 million euros at 30 November 2024, compared with 350.0 million euros on November 30, 2023.

 

On 10 July, Kaufman & Broad set up a new 200 million euros syndicated loan agreement. With an initial maturity of 5 years, this loan replaces the 250 million euros ‘RCF 2019’ syndicated loan agreement maturing in January 2025. The implementation of this corporate line will allow the company to extend the maturity of its resources, while giving it flexibility of use according to needs and opportunities, in addition to its available cash.

 

Working capital requirements amounted to 289.2 million euros at 30 November 2024, or -26.9% of sales, compared with 80.8 million euros at 30 November 2023 or -5.7% of sales.

 

Finally, the rating agency Fitch Ratings confirmed last August the ‘Investment Grade’ - ‘BBB-’ rating with stable outlook of Kaufman & Broad S.A. This rating has been constant since 2022. For Fitch Ratings, the confirmation of the rating reflects Kaufman & Broad's solid business and financial profile, which proves resilient during periods of weak demand. Fitch also points out that Kaufman & Broad continues to maintain a positive net cash position, which comfortably covers all future debt maturities.

 

 

  • Dividend

 

The Board of Directors of Kaufman & Broad SA will propose to the Shareholders' Meeting of 6 May 2025 the payment of a dividend of €2.20 per share.

 

 

  • Outlook 2025

 

For the full year 2025, Group revenue is expected to increase by around 5%. The recurring operating income ratio is expected to be between 7.5% and 8.0%. The Group is expected to remain in a positive net cash position(a ) after taking into account the payment of a dividend of €43.1M for 2024, i.e. €2.20 per share, subject to approval by the Shareholders' Meeting of May 6, 2025.

 

(a) excluding IFRS 16 and Put Neoresid debt

 

 

 

 

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

 

  • Next periodic information date:
  • Friday, 11 April 2025: Publication of the 1st quarter 2025 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 meeting to be held at the Company's registered office also broadcast by means of 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:

Friday, January 31, 2025 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

As an urban developer and assembler, the Kauf

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