from KAUFMAN & BROAD (EPA:KOF)
Kaufman & Broad SA: RESULTS FOR THE 1ST HALF YEAR OF 2024
Kaufman & Broad SA
S Press release Press release Paris, 2024 July 11th
Results for thE 1st half YEar of 2024
In the 1st half of 2024, home reservations amounted to €561.2M (including VAT), up 11.5% from €503.2M in 2023. In volume terms, they stood at 2,400 homes in 2024, up 7.2% from 2,238 in 2023.
The program’s take-up rate[1] was 4.1 months in 2024, 1st half year, down nearly 3 months from the same period in 2023 (7.0 months).
The commercial offer, with 97% of homes located in tight areas (A, ABIS and B1), amounted to 1,626 homes at 2024 May 31 (2,618 homes at the end of May 2023).
Customer Breakdown
Orders in value (including VAT) for first time buyers accounted for 17% of orders, compared to 12% over the same period in 2023. First time buyers accounted for 6% of orders, as in 2023. Orders made to investors accounted for 11% of orders (of which 5% for Pinel scheme alone), compared with 13% in May 2023 (of which 5% for Pinel scheme alone). Block sales accounted for 66% of orders in value (including VAT), compared with 70% over the same period in 2023.
As of 2024, May 31, the commercial property division recorded net orders of €21.7M (including VAT) compared to €24.5M (including VAT) for the same period in 2023.
Kaufman & Broad currently has 192,000 sq.m. of office space and approximately 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. Finally, the company has nearly 13,500 sq.m of office space to be completed in MOD (delegated project management as well as 12,670 sq.m of logistics space to be signed).
As of 2024, May 31, Housing Backlog stood at €2,090.0M (excluding VAT) compared to €2148.9M (excluding VAT) for the same period in 2023, i.e. 28.3 months of activity compared to 22.8 months of activity at the end of May 2023. In the 1st half of 2024, Kaufman & Broad had 123 residential programs under marketing, representing 1,626 housing units (145 programs and 2,618 housing units at the end of May 2023).
The Housing portfolio represents 33,003 units, down 4.9% compared to the end of November 2023 (34,694 units). At the end of may 2024, it represented over 6 years of commercial activity.
In addition, 89% of the housing portfolio is located in tight areas, representing 29,250 housing units as of 2024, May 31.
In the 3rd quarter of 2024, the group plans to launch 11 new programs for 593 units, of which 2 in the Paris region areas representing 109 units and 9 in the Regions areas representing 484 units.
At the end of May 2024, the Backlog of the Commercial property division was €583.4M euros excl. VAT compared to €665.1 M excl. VAT for the same period in 2023.
Total revenue amounted to €452.5M (excluding Vat), compared to €848.8M in the same period in 2023.
Housing revenue amounted to €389.6M (excluding VAT), compared to €461.0M (excluding VAT) in 2023. It represents 86.1% of the group's revenue.
Revenue from the Apartments business line was €356.3M (excl. VAT) (vs. €428.4M (excl. VAT) at the end of May 2023). Revenue for the Commercial property division was €54.4M (excl. Vat), compared to €381.0M (excl. Vat) over the same period in 2023. Other activities generated revenues of €8.5M (excl. VAT) (including €4.0M in revenues from the operation of student managed residences) compared to €6.9M (excl. VAT) (including €3.7M in revenues from the operation of student managed residences).
Gross profit amounted to €97.5M in the 1st half of 2024, compared with €141.7M in 2023. The gross margin was 21.6% compared to 16.7% in the same period of 2023.
Current operating expenses amounted to €63.0M (13.9% as of sales), compared to €73.9M in the same period in 2023 (8.7% as of sales). Current operating income amounted to €34.5M, compared to €67.7M in 2023. Current operating margin stood at 7.6%, compared with 8.0% in 2023. Operating profit amounted to €37.9M, compared to €67.7M in 2023.
At the end of May 2024, consolidated net income amounted to €27.9M, compared with the same period in 2023 when it amounted to €46.0M. non-controlling interests amounted to €6.8M in the 1st half of 2024 compared to €7.5M in 2023. Attributable net income was €21.1M, compared with €38.5M in 2023.
The positive net cash position (excluding IFRS 16 debt and Neoresid put debt) at 2024, May 31 was €224.9M, compared with a positive net cash position (excluding IFRS 16 debt and Neoresid put debt) of €101.7M at the end of May 2023 and €180.5M at the end of November 2023. Cash and cash equivalents amounted to €328.9M at 2024, May 31, compared with €267.1M at the end of May 2023 and €350.0M at 2023, November 30. Financial capacity amounted to €578.9M at 2024, May 31, compared with €517.1M at 2023, May 31 and €600.0M at the end of November 2023.
Working capital requirements amounted to €(138.9)M at 2024, May 31, or -13.7% of sales, compared with €24.7M at the end of May 2023 (or 1.6% of sales) and €(80.8)M at 2023, November 30, or -5.7% of sales.
As part of its Euro PP bond issue, Kaufman & Broad redeemed the first 7-year tranche of €50M (maturing in May 2024). Repayment was made in accordance with the documentation on 2024, May 17, using the company's excess cash. This private placement, which amounted to €150M at the time of subscription, also comprises an 8-year €100M tranche (maturing in May 2025).
In addition, a new five-year RCF facility of €200M was signed on 2024, July 10. It replaces and cancels the €250M of RCF credit facility that expired in January 2025.
The Kaufman & Broad Shareholders' Meeting held on 2024, May 6, chaired by Mr. Nordine Hachemi, appointed Mr. Yves Perrier as Director to replace Mr. Michel Giannuzzi. In addition, at the close of the Shareholders' Meeting of 2024, May 6, the Board of Directors coopted Mrs. Isabelle Bordry as Director to replace Mr. Yves Gabriel.
Kaufman & Broad and Banque des Territoires of the Territories have partnered to create an investment property in student managed residences. The operation of the residences will be carried out by Neoresid and the real estate company will be managed by the company 123 IM. 51% -owned by Kaufman & Broad and 49% -owned by Banque des Territoires, the purpose of SCI KetB Etudiants is to hold the walls of student residences, with the operation of residences being carried out by Neoresid, a subsidiary of Kaufman & Broad. In addition to the residences currently in the portfolio within SCI KetB Etudiants, the latter will be fueled by acquisitions of VEFA or by already existing residences with the objective of renovation and compliance with environmental standards. Several projects are identified and could be developed over the next few years based on the developer/operator/investor model implemented by Kaufman & Broad. The investment strategy will focus on cities with a strong actual or potential student presence, and where the current supply of managed residences and related services for students is reduced.
For the whole of 2024, the group's revenue is expected to be around €1.1 billion, the difference compared to 2023 being explained by the base effect of the Austerlitz operation. The Current operating income ratio is expected to be between 7% and 7.5%. The group is expected to maintain a positive net cash position(a ).
a) excluding IFRS 16 and Put Neoresid debt
This press release is available at www.corporate.kaufmanbroad.fr
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