from KAUFMAN & BROAD (EPA:KOF)
Kaufman & Broad SA: 2024 Annual results
Kaufman & Broad SA
S Press release Press release Paris, 30 January 2025
2024 ANNUAL RESULTS
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. ‘
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.
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.
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.
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).
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.
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.
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.
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
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