from KAUFMAN & BROAD (EPA:KOF)
Kaufman & Broad SA: RESULTS FOR THE FIRST NINE MONTHS FOR THE YEAR 2024
Kaufman & Broad SA
S Press release Press release Paris, 30 September 2024
RESULTS FOR THE FIRST NINE MONTHS FOR THE YEAR 2024
Kaufman & Broad confirmed its guidance for the entire 2024 financial year. 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 maintain a positive net cash position(a ). ‘
In the first nine months of 2024, housing orders in value amounted to 777.9 million euros (including VAT), compared to 720.1 million euros compared to the same period in 2023, an increase of 8.0%. In volume terms, they stood at 3,433 units in 2024, up 5.8% from 3,245 in 2023.
The housing take-up rate[1] was 3.6 months at 2024 August 31(over nine months), down nearly 3 months compared to the same period in 2023 (6.3 months).
The commercial offer, with 96 % of units located in high demanding areas (A, ABIS and B1), amounted to 1,355 units on 31 August 2024 (2,287 units at the end of August 2023).
Customer Breakdown
Orders in value (including VAT) for first time buyers accounted for 18% of sales, compared to 13% over the same period in 2023. First time buyers accounted for 6% of sales in 9 months of 2024, compared with 5% in 2023. Orders made to investors accounted for 15% of sales (of which 8% for Pinel alone), compared with 16% at the end of August 2023 (of which 7% for Pinel alone). Block sales accounted for 61% of orders in value (including VAT), compared with 66% over the same period in 2023.
As of 2024, August 31, the commercial division recorded net bookings of 21.0 million euros (including VAT) compared to 24.5 million euros (including VAT) for the same period in 2023.
Kaufman & Broad currently has 82,800 sq. M. of office space and approximately 192,000 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 37,000 sq. M of office and logistics space to be signed.
As of 2024, August 31, housing Backlog stood at 2050.0 million euros (including VAT) compared to 2048.5 million euros (including VAT) for the same period in 2023, i.e. 27.5 months of activity compared to 23.4 months of activity at the end of August 2023. As of 2024, August 31, Kaufman & Broad had 116 housing programmes under marketing, representing 1,355 housing units (143 programmes and 2,287 housing units as at the end of August 2023).
The land portfolio represents 30,347 units and is down 11.3% compared to the end of August 2023 (34,216 units). At the end of August 2024, it represented over 5 years of commercial activity. In addition, 89% of the housing portfolio is located in tight areas, representing 27,018 housing units as of 2024, August 31.
In the fourth quarter of 2024, the group plans to launch 37 new programmes for 2,201 units, of which 8 in the Paris region representing 395 units and 29 in the Regions representing 1,806 units.
For the first nine months of 2024, the Backlog of the Commercial property Division was 552.5 million euros excluding VAT compared to € 641.9 million excluding. VAT for the same period in 2023.
Total revenue amounted to 701.2 million euros (excluding VAT), compared to 1083.9 million euros in the same period in 2024.
Housing revenue amounted to 598.4 million euros (excluding VAT), compared to 663.1 million euros (excluding VAT) in 2023. It represents 85.3% of the group's revenue.
Revenue from the Apartments business was 549.0 million euros (excluding VAT) (vs. 613.4 million euros (excl. VAT) at end August 2023). Revenue for the Commercial property Division was 90.3 million euros (excluding VAT), compared to 410.7 million euros (excluding VAT) over the same period in 2023. Other activities generated revenues of 12.5 million euros (excluding VAT) (including 6.1 million euros in revenues from the operation of student residences) compared to 10.1 million euros (excluding VAT) (including 5.5 million euros in revenues from the operation of student residences).
On 2024, August 31, gross profit amounted to 146.2 million euros, compared with 193.6 million euros in the same period in 2023. The gross margin was 20.9% compared to 17.9% in the same period of 2023.
Current operating expenses amounted to 92.7 million euros (13.2% of sales), compared to 107.2 million euros in the same period in 2023 (9.9% of sales). Current operating income amounted to 53.5 million euros, compared to 86.4 million euros in 2023. Current operating income stood at 7.6%, compared with 8.0% in 2023. Underlying earnings amounted to 56.9 million euros, compared to 86.4 million euros in 2023.
At the end of August 2024, consolidated net income amounted to 40.0 million euros, compared with the same period in 2023 when it amounted to 57.1 million euros. Non-controlling interests amounted to 8.9 million euros in the first nine months of 2024, compared with 11.6 million euros in 2023. Attributable net income was 31.1 million euros, compared with 45.5 million euros in 2023.
The positive net cash position (excluding IFRS 16 debt and Neoresid put debt) on 2024, August 31 was 381.5 million euros, compared with a positive net cash position (excluding IFRS 16 debt and Neoresid put debt) of 201.2 million euros at the end of August 2023 and 180.5 million euros at the end of November 2023. Cash and cash equivalents amounted to 485.5 million euros on 2024, August 31 compared with 368.8 million euros at the end of August 2023 and 350.0 million euros at 2023, November 30. Financial capacity amounted to 685.5 million euros on 2024, August 31, compared with € 618.8 million at 2023, August 31 and 600.0 million euros at the end of 2023.
Last 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 291.6 million euros at 2024, August 31 or -28.4% of sales, compared with -62.7 million euros at the end of August 2023 (or -4.1% of sales) and 80.8 million euros at 2023, November 30 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.
Having expressed the wish of Sophie Lombard to terminate her duties as a director of the company, the Board of Directors took note of this resignation and coopted Michel Sirat as a new independent director. The members of the Board warmly thanked Sophie Lombard for her commitment and contribution to society throughout the years spent on the Board of Directors of Kaufman & Broad SA.
For the whole year 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 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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