from KAUFMAN & BROAD (EPA:KOF)
Kaufman & Broad SA: RESULTS FOR THE FIRST NINE MONTHS OF THE FINANCIAL YEAR 2023
Kaufman & Broad SA S Press release Press release Paris, October 2, 2023
RESULTS FOR THE FIRST NINE MONTHS OF THE FINANCIAL YEAR 2023
Sales Activity
In the first nine months of 2023, housing orders in value amounted to €720.1 million (including VAT), compared to €883.5 million compared to the same period in 2022, down 18.5%. In volume terms, they stood at 3,245 housing units in 2023, down 12.6% from 3,714 in 2022.
The take up period rate was 6.3 months as of August 31, 2023 (on a nine-month basis), up 0.9 months from the same period in 2022 (5.4 months).
The commercial offer, with 90% of housing units located in tight areas (A, ABIS and B1), amounted to 2,287 units at the end of August 2023 (2,219 units at the end of August 2022).
Customer Breakdown
Orders in value (including VAT) for first time buyers accounted for 13% of sales in the first nine months of 2023, compared to 16% in the same period in 2022. First time buyers accounted for 5% of sales, compared with 11% in 2022. Orders made to investors accounted for 16% of sales (of which 7% for Pinel’s scheme alone), compared with 38% in August 2022. Block sales accounted for 66% of orders in value (including VAT), compared with 35% over the same period in 2022.
In the first nine months of 2023, the commercial property division recorded net orders of €24.5 million including VAT, compared with €29.7 million including VAT at the end of August 2022.
Kaufman & Broad currently has 112,091 sq. m. of office space and approximately 178,145 sq. m. of logistics space on the market or under study. In addition, 120,361 sq. m of office space is currently under construction or in start-up in the coming months. Finally, nearly 20,410 sq. m. of office space remains to be signed.
As of August 31, 2023, housing Backlog stood at €2,048.5 million (excluding VAT) compared to €2266.1 million (excluding VAT) for the same period in 2022, i.e., 23.4 months of activity compared to 24.6 months of activity at the end of August 2022. On August 31, 2023, Kaufman & Broad had 143 housing programs under marketing, representing 2,287 housing units (142 programs and 2,219 housing units in the same period in 2022).
The housing land portfolio 34,216 units was down 2.4% compared to the end of August 2022 (35,042 units). At the end of August 2023, it represented over 6 years of commercial activity.
In addition, 86% of the housing land portfolio is located in tight areas, representing 29,461 housing units at the end of August 2023. In third quarter of 2023, the group plans to launch 56 new programs, including 12 in the Paris region representing 963 units and 44 in the regions representing 3,355 units.
For the first nine months of 2023, the Backlog of the Commercial property Division was €641.9 million excluding VAT compared to € 1,048.7 million excluding VAT for the same period in 2022.
Total revenue at August 31, 2023, amounted to €1,083.9 million (excluding VAT), compared with €885.8 million in 2022.
Housing division revenue amounted to €663.1 million (excluding VAT), compared to €763.2 million (excluding VAT) in 2022. It represents 61.2% of the group's revenue.
Revenue from the Apartments business was €613.4 million (excluding VAT) (vs €713.7 million (excluding VAT) at end August 2022). Revenue for the Commercial property Division was €410.7 million (excluding VAT), compared to €113.7 Million (excluding VAT) over the same period in 2022. Other activities generated revenues of €10.1 million (excluding VAT) (including €5.5 million in revenues from the operation of student residences) compared to €8.8 million at August 31, 2022 (including €4.9 million in revenues from the operation of student residences).
Gross profit amounted to €193.6 million in the first nine months of 2023, compared to €155.0 million in the same period in 2022. The gross margin was 17.9% compared to 17.5% in 2022.
Recurring operating expenses amounted to €107.2 million (9.9% of revenue), compared to €91.4 million in the same period in 2022 (10.3% of revenue). Current operating income amounted to €86.4 million, compared to €63.6 million in 2022. Current operating income stood at 8.0%, compared with 7.2% in 2022.
At the end of August 2023, consolidated net income amounted to €57.1 million, compared with the same period in 2022 when it amounted to €45.3 million. Non-controlling interests (Minority interest) amounted to €11.6 million in the first nine months of 2023, compared with €13.4 million in 2022. Attributable Net income was €45.5 million, compared with €31.9 million in 2022.
The positive net cash position (excluding IFRS 16 debt and Neoresid put debt) at the end of August 2023 was €201.2 million, compared to a net financial debt of €67.8 million at the end of November 2022. Cash and cash equivalents amounted to €368.8 million at the end of August 2023, compared with €101.0 million at November 30, 2022. Financial capacity amounted to €618.8 million at August 31, 2023, compared with €351.0 million at the end of November 2022.
Working capital requirements amounted to €(62.7) million at the end of August 2023, or -4.1% of revenues, compared with €204.1 million at the end of August 2022 (or 16.0% of revenue) and €190.0 million at November 30, 2022 (or 14.5% of revenue).
As part of its share buyback program, Kaufman & Broad entered into an acquisition agreement on September 5, 2023 for a block of 1,251,000 shares of the Company held by Artimus Participations, a company bringing together managers and former managers of the Company, representing a total investment of €32.4 million.
Following the transaction, the repurchased shares were cancelled. This operation made it possible to readjust all of the Company's shareholders in the same proportions without hampering its investment capacity, while stabilising its shareholding
At the end of this transaction, group employees will remain key shareholders of the company, directly or indirectly, with 12.2% of the share capital and 14.6% of the voting rights.
The Group confirms its outlook for the whole of 2023:
(B) Excluding IFRS 16 and Put Neoresid debt and considering the disbursement of 32.4 million euros for the purchase/cancellation of 1,251,000 shares on September 5, 2023.
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