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par KAUFMAN & BROAD (EPA:KOF)

Kaufman & Broad SA: 1ST QUARTER 2023 RESULTS

Kaufman & Broad SA
Kaufman & Broad SA: 1ST QUARTER 2023 RESULTS

13-Apr-2023 / 18:05 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


S Press release

  Press release

 Paris, 13 April 2023

 

1st quarter 2023 results

 

 

 

  • Strong increase in net income
  • Very solid financial structure
  • 2023 outlook confirmed
  • Dividend of euros 2.40 per share proposed to the Shareholders' Meeting of May 4

 

 

 

  • Main elements of commercial activity

 

  • Total orders: €269.9M incl. VAT
  • Of which Housing : €234.1M incl. VAT
  • O/w Commercial : €24.5M incl. VAT

 

  • Housing take-up period: 6.9 months

 

 

  • Key financial data

 

  • Revenue : €586.5M

O/w housing : €229.3M

  • Gross profit : €85.0M
  • EBIT margin(a ) : 8.4%
  • EBIT : €49.6M
  • Net income (group share ) : €31.6M
  • Net cash (b ) : €121.6M
  • Financial capacity : €542.7M

 

 

  • Key growth indicators

 

  • Global backlog : €2890.4M

O/w housing : €2189.2M

  • Real estate portfolio Housing : 34,429 units

Kaufman & Broad SA today announced its results for the 1st quarter of Fiscal 2023 (from December 1 to 28 February 2023). Nordine Hachemi, Chairman and Chief Executive Officer of Kaufman & Broad, said:

 

‘The 1st quarter results of 2023 are in line with our expectations.

 

The order levels in volume observed over the quarter reflect the marked wait and see attitude on the part of all market players, resulting from the rise in rates observed over the last fifteen months.

 

On the one hand, it reduces the purchasing power of individuals and the visibility of institutional investors on expected returns.

On the other hand, the gap between the permitted interest rate cap and the real cost of money leads banks to tighten debt ratio requirements, leading to a contraction in the volume of home loans.

 

In response to this situation, Kaufman & Broad significantly increased its block revenue during the quarter and continues to adjust the economic parameters of some of its projects to bring them into line with market purchasing capacities.

 

With a take-up period of 6.9 months, the pace of marketing, although slightly slowed down, remains significantly higher than the market average. The land reserve remains at high levels and the housing Backlog is more than 22 months of activity.

 

The financial results reflect the launch of Austerlitz's A7/A8 operation. This resulted in a significant increase in Kaufman & Broad's revenue and results.

 

The financial structure is very solid with a net cash position(b) of 121.6 million euros at 28 February 2023.

 

As indicated last January, the fiscal year 2023 presents itself as a period of adjustment of the parameters of the housing market. Faced with supply constrained by the financial environment, structurally unmet demand continues to accumulate, powered in particular by demographic fundamentals and expectations arising from the energy transition.

 

In this context, Kaufman & Broad relies on its very strong balance sheet as well as the high level of its Backlog and land portfolio to get through the period of the coming months and, beyond that, take full advantage of the recovery in a healthy market.

 

The group confirmed its outlook for the full year 2023, announced at the end of January. Revenue is expected to be around 1.5 billion euros, the recurring operating income ratio is expected to be around 8% and the Group's net cash position to be positive.”

 

  • Sales Activity

 

  • Housing Division

 

In the 1st quarter of 2023, housing orders amounted to 234.1 million euros (including tax), down 15.8% from 278.0 million euros in 2022. In volume terms, they stood at 1,021 housing units in 2023 compared to 1,237 in 2022, a decrease of 17.5%.

 

The programme take-up period was 6.9 months in the 1st quarter of 2023, an increase of 2.4 months compared to the same period in 2022 (4.5 months).

 

The commercial offering, with 98% of homes located in tight areas (A, ABIS and B1), amounted to 2,360 homes at 28 February 2023 (1,873 units at the end of February 2022).

 

 

Customer Breakdown

 

Bookings in value (including tax) for first time buyers accounted for 8% of revenue, compared to 18% over the same period in 2022. First time buyers accounted for 5% of revenue, compared with 12% in 2022.

Orders made to investors accounted for 11% of revenue (of which 5% for Pinel alone), compared with 36% compared to February 2022. Block revenue accounted for 75% of orders in value terms (including Vat), compared with 34% over the same period in 2022. 

 

  • Commercial Property

 

At the end of 28 February 2023, the commercial division recorded net orders of 24.5 million euros (including Vat). No orders were recorded during the same period in 2022.

 

Kaufman & Broad currently has about 105,800 sq.m of office space and approximately 154,160 sq.m of logistics space on the market or under consideration. In addition, 136,400 sq.m. of office space is currently being built or started in the coming months, along with nearly 28,600 sq.m. of logistics space. Lastly, 20,400 sq.m. of office space remains to be signed.

 

 

  • Leading indicators of business activity and growth

 

At the end of 28 February 2023, Housing Backlog stood at 2189.2 million euros (excl. VAT) compared to 2278.7 million euros (excl. VAT) for the same period in 2022, i.e., 22.9 months of activity compared to 24.9 months of activity at the end of February 2022. In the 1first quarter of 2023, Kaufman & Broad had 143 housing programmes in the process of being marketed, representing 2,360 housing units (145 programmes and 1,873 housing units at the end of February 2022).

 

The real estate portfolio represents 34,429 units and is up 1.2% compared to the end of November 2022 (34,009 units). At the end of February 2023, it corresponded to over 6 years of commercial activity.

 

In addition, 88% of the housing units in the land portfolio are located in tight areas, representing 30,351 housing units as of 28 February 2023.

 

During the 2nd quarter of 2023, the group plans to launch 27 new programs, including 7 in the Paris areas region representing 318 units and 20 in the Other Regions representing 1,421 units.

 

At the end of February 2023, the Backlog for the Commercial property division was 691.7 million euros excluding VAT compared to 1095.4 million euros excluding VAT for the same period in 2022.

 

 

 

 

  •  Financial results

 

  • Activity 

 

Total Revenue amounted to 586.5 million euros (excl. VAT), compared to 279.0 million euros for the same period in 2022.

 

Housing activity revenue amounted to 229.3 million euros (excl. VAT), compared to 235.2 million euros (excl.  VAT) in 2022. It represents 39.1% of the group's revenue.

 

Revenue for the Apartments business was 213.6 million euros (excl. VAT) (vs). 229.3 million euros (excl. VAT) at end February 2022). Revenue for the Commercial property division was 353.9 million euros (excl. VAT), compared with 41.3 million euros (excl. VAT) for the same period in 2022. Other activities generated revenues of 3.4 million euros (excl. VAT) (including 1.9 million euros in revenues related to the operation of managed student residences) compared to 2.5 million euros in 2022.

 

 

  • Profitability data 

 

At 28 February 2023, gross profit amounted to 85.0 million euros, compared to 48.3 million euros over the same period in 2022. The gross margin was 14.5% compared to 17.3% in 2022.

 

Current operating expenses amounted to 35.4 million euros (6.0% of revenue), compared to 27.3 million euros in the same period in 2022 (9.8% of revenue). Recurring operating income amounted to 49.6 million euros, compared to 21.0 million euros in 2022. Recurring operating income stood at 8.4% compared to 7.5% in 2022.

 

At the end of February 2023, consolidated net income amounted to 34.7 million euros, compared with 15.7 million euros in 2022. Non-controlling interests amounted to 3.1 million euros in the 1st quarter of 2023, compared with 3.9 million euros in 2022.

Net income attributable was 31.6 million euros, compared with 11.8 million euros in 2022.

 

 

  • Financial structure and liquidity

 

Net cash (excluding IFRS 16 debt and Neoresid put debt) amounted to 121.6 million euros at February 28, 2023, compared with net financial debt of 67.8 million euros at the end of November 2022. Cash and cash equivalents amounted to 292.7 million euros at February 28, 2023, compared with 101.0 million euros at November 30, 2022. Financial capacity amounted to 542.7 million euros at February 28, 2023, compared with 351.0 million euros at the end of November 2022.

 

Working capital requirements amounted to 50.6 million euros at February 28, 2023, or 3.1% of revenue, compared to 229.4 million euros at the end of February 2022 (either 18.0% of revenue).

 

 

  • Dividend

 

At the Shareholders' Meeting of 4 May 2023, the Board of Directors of Kaufman & Broad SA will propose the payment of a dividend of €2.40 per share.

 

 

  • Outlook for 2023

 

The group confirmed its outlook for the full year 2023, announced at the end of January. Revenue is expected to be around 1.5 billion euros, the recurring operating income ratio is expected to be around 8% and the Group's net cash position to be positive.

 

This press release is available at www.kaufmanbroad.fr

 

 

  • Next periodic information date:
  • Thursday, 12 July 2023: Publication of 2023 half year results (after trading)

 

 

Contacts

 

Chief Financial Officer

Bruno Coche -01 41 43 44 73/infos-invest@ketb.com

Press relations

PRIMATICE: Thomas de Climens -06 78 12 97 95/thomasdeclimens@primatice.fr

Kaufman & Broad: Emmeline CACITTI -06 72 42 66 24/ecacitti@ketb.com

 

About KAUFMAN & BROAD

For more than 50 years, KAUFMAN & BROAD has been designing, developing, building and selling apartments, single-family homes in communities, managed housing, retail areas, business spaces and offices buildings.

As a designer and a true urban builder alongside regional authorities to develop new neighbourhoods and major urban projects, KAUFMAN & BROAD is one of the first French Developers-Builders by the combination of its size, profitability and the strength of its brand.

Let us create a more virtuous city together.

For more information : www.kaufmanbroad.fr   

Kaufman & Broad's Universal Registration Document was filed on March 31, 2023 with the Autorité des marchés financiers (the "AMF") under number D.23-0210. It is available on the websites of the AMF (www.amf-france.org) and Kaufman & Broad (www.kaufmanbroad.fr). It contains a detailed description of Kaufman & Broad's business, results and outlook as well as the associated risk factors. In particular, Kaufman & Broad draws attention to the risk factors described in Chapter 4 of the Universal Registration Document. The occurrence of one or more of these risks may have a material adverse effect on the business, assets, financial condition, results or prospects of the Kaufman & Broad Group, as well as on the market price of Kaufman & Broad shares.

This press release does not constitute, and shall not be deemed to constitute, an offer to the public, an offer to sell or an offer to subscribe or a solicitation of an order to buy or subscribe in any jurisdiction.

 

GLOSSARY

 

Backlog or (backlog ) : for sales in the future state of completion (VEFA), it covers the undelivered reserved housing units for which the notarized bill of sale has not yet been signed and the undelivered reserved housing units for which the notarized bill of sale has been signed up to the portion not yet taken into revenue (on a 30% advanced program, 30% of the sales of a housing unit for which the notarized bill of sale has been signed is recorded in revenue, 70% are included in the backlog). The backlog is a summary at a given time that makes it possible to estimate the revenue remaining to be recognised in the coming months and thus reinforce the Group's forecasts - it being specified that there is an uncertain proportion of transformation of the backlog into revenue, particularly for orders not yet recorded.

 

BEFA: the building under completion consists of renting a building 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.

 

Free cash flow:  free cash flow is equal to cash flow less net operating investments

For the year.

 

Cash flow from operations: cash flow from operations after finance costs and taxes is equal to consolidated net income adjusted for the share in net income of associates, joint ventures and income from discontinued operations and calculated income and expenses.

 

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