par KAUFMAN & BROAD (EPA:KOF)
Kaufman & Broad SA: 1ST HALF 2023 RESULTS
Kaufman & Broad SA S Press release Press release Paris, 12 July 2023
1st Half 2023 Results
All of these factors led the Group to specify the outlook announced at the end of last January for the whole of 2023:
In the 1st half of 2023, home reservations amounted to 503.2 million euros (including VAT), down 19.4% from 624.7 million euros in 2022. In volume terms, they stood at 2,235 units in 2023, down 11.5% from 2,525 in 2022.
The programme run off period was 5.3 months as of 31 May 2023 (on a rolling twelve-month basis), up 0.9 months from the same period in 2022 (4.4 months).
The commercial offering, with 95% of housing units located in tight areas (A, ABIS and B1), amounted to 2,618 units at the end of May 2023 (2,265 units at the end of May 2022).
Customer Breakdown
First time buyers' reservations accounted for 12% of sales in the 1st half of 2023, compared with 17% in 2022. First time buyers accounted for 6% of sales, compared with 12% in 2022. Reservations made to investors accounted for 13% of sales (of which 5% for Pinel alone), compared with 39% in May 2022. Block sales accounted for 70% of reservations in value (including VAT), compared with 31% over the same period in 2022.
In the 1st half of 2023, the commercial property division recorded net orders of €24.5 million including VAT, compared with €28.5 million including VAT in the 1st half of 2022.
Kaufman & Broad currently has about 106,800 m ² of office space and about 178,100 sq.m of logistics space on the market or under study. In addition, 136,350 sq.m. of office space is currently under construction or start up in the coming months, as well as nearly 21,400 sq.m. of logistics space. Finally, there are still 20,300 sq.m of office space to be signed.
As of May 31, 2023, Backlog housing stood at €2,148.9 million (exclusive of tax) compared to €2,326.3 million (exclusive VAT) for the same period in 2022, i.e., 22.8 months of activity compared to 26.1 months of activity at the end of May 2022. In the 1st half of 2023, Kaufman & Broad had 145 housing programs under marketing, representing 2,618 housing units (154 programs and 2,265 housing units in the 1st half of 2022).
The land portfolio represents 34,694 units, up 2.0% compared to the end of November 2022 (34,009 units). At the end of May 2023, it represented over 6 years of business activity.
In addition, 85% of the housing portfolio is located in tight areas, representing 29,591 housing units at the end of May 2023.
In third quarter of 2023, the group plans to launch 21 new programs, including 2 in the Paris area representing 157 units and 19 in the regions representing 1,140 units.
In the 1st half of 2023, the Backlog of the Commercial Division was €665.1 million excluding tax compared to €1,076.4 million excluding tax for the same period in 2022.
Total sales amounted to €848.8 million (excluding Vat) at May 31, 2023, compared with €574.4 million in 2022.
Housing revenue amounted to €461.0 million (excluding VAT), compared to 481.6 million euros (excluding VAT) in 2022. It represents 54.3% of the group's total revenue.
Revenue from the Apartments business was €428.4 million (excluding VAT) (vs. €461.7 million (excluding VAT) at the 1st half of 2022). Revenue for the Commercial property division was €381.0 million (excluding Vat), compared to €87.3 million (excluding VAT) over the same period in 2022. Other activities generated revenues of €6.9 million (excluding VAT) (of which €3.7 million related to the operation of student managed residences compared to €3.2 million in 2022) and €5.5 million at May 31, 2022.
Gross profit amounted to €141.7 million in the 1st half of 2023, compared to €99.6 million in 2022. The gross margin was 16.7% compared to 17.3% in 2022.
Current operating expenses amounted to 7€3.9 million (8.7% of revenue), compared to €56.8 million in the same period in 2022 (9.9% of revenue). Current operating income amounted to €67.7 million, compared to €42.8 million in 2022. Current operating income margin stood at 8.0%, compared with 7.5% in 2022.
In the 1st half of 2023, consolidated net income amounted to €46.0 million, compared with €31.4 million in 2022. Non-controlling interests amounted to €7.5 million in the 1st half of 2023 compared to €8.7 million in 2022. Attributable net income was €38.5 million, compared with €22.7 million in 2022.
The positive net cash position (excluding IFRS 16 debt and Neoresid put debt) at the end of May 2023 was 1€01.7 million, compared with a net financial debt of €67.8 million at the end of November 2022. Cash and cash equivalents amounted to €267.1 million at the end of May 2023, compared with €101.0 million at November 30, 2022. Financial capacity amounted to €517.1 million at May 31, 2023, compared with €351.0 million at the end of November 2022.
Working capital requirements amounted to €24.7 million at the end of May 2023, or 1.6% of revenue, compared to 177.0 million euros at the end of May 2022 (or 14.2% of revenue) and €190.0 million at November, 30 2022 (or 14.5% of revenue).
The group sets out the outlook announced at the end of January for 2023 as a whole:
This press release is available at www.kaufmanbroad.fr
GLOSSARY
Backlog or (order book ) : it covers, for Sales in the Future Completion Status (VEFA), undelivered reserved units for which the notarially signed deed of sale has not yet been signed and undelivered reserved units for which the notarially signed deed of sale has been signed up to the portion not yet taken into revenue (on a 30% advanced program, 30% of the revenue of a housing for which the notarially signed deed of sale has been recorded as revenue, 70% are included in the backlog). The backlog is a summary at a given point in time that makes it possible to estimate the revenue still to be recognised in the coming months and thus support the Group's forecasts - it being specified that there is an uncertain portion of the transformation of the backlog into revenue, particularly for bookings not yet recorded.
BEFA: the Bail in the Future Completion consists of a user renting a building even before it is built or restructured.
Working Capital Requirement (WCR): This arises from cash flow mismatches: disbursements and receipts corresponding to operating expenses and revenues required for the design, production and marketing of real estate programs. The resulting simplified expression for WCR is as follows: these are current assets (inventory + trade receivables + other operating receivables + advances received + prepaid income) less current liabilities (trade payables + tax and social security payables + other operating liabilities + prepaid expenses). The size of the WCR will depend in particular on the length of the operating cycle, the size and duration of storage of work-in-progress, the number of projects launched and the payment terms granted by suppliers or the profile of payment schedules granted to customers. |