Kaufman & Broad SA: 2025, 1ST QUARTER RESULTS
11 Apr 2025 18:10 CEST
Issuer
KAUFMAN ET BROAD S.A.
|
Kaufman & Broad SA
S Press release Press release Paris, 2025 April 11
2025, 1st quarter results
Lastly, Kaufman & Broad has 200 million euros in unused RCF lines to date, bringing its financial capacity to more than 576 million euros while benefiting from an Investment grade rating of ‘BBB -’ from Fitch Rating.
The current severe disruptions in the political and macroeconomic environments are fuelling uncertainties. Although in mid-April Kaufman & Broad did not see any particular pressure on its key sales indicators, such as orders, acquisition of prospects, withdrawal rates or time-to-market, the group remains attentive to a possible deterioration in economic conditions over the coming months.
The outlook set in January for the whole of 2025 is maintained: Revenue are expected to increase by around 5%. The Operating Margin rate or EBIT rate is expected to be between 7.5% and 8% and net cash should remain significant after taking into account the repayment of the May 2025 maturity of 100 million euros of EuroPP debt and the payment of a dividend of nearly 43 million euros for the 2024 financial year, or €2.20 per share, submitted for approval to the Annual Shareholders’ Meeting of May 6. ‘
At the end of February 2025, housing orders amounted to €252.1 million (including VAT), compared to €252.7 million compared to the same period in 2024. In volume terms, they stood at 1,190 homes in 2025, up 6.0% from 1,023 in 2024.
The Take-up rate for programmes was 3.8 months at February 28, 2025 (over 3 months), a slight decrease compared to the same period in 2024 (4.1 months).
The commercial offering, with 96 % of units located in tight areas (A, ABIS and B1), amounted to 1,518 units at 2025 February 28 (1,517 units at the end of February 2024).
Customer Breakdown
Orders in value (including VAT) for first time buyers accounted for 23% of sales, compared to 12% over the same period in 2024. First quarter 2025 sales accounted for 8% of sales, which was also 8% in 2024. Orders made to investors accounted for 10% of sales, compared with 9% at the end of February 2024. Block sales accounted for 59% of orders in value (including VAT), compared with 72% over the same period in 2024.
As of February 28, 2025, the commercial property recorded net orders of €0.5 million (including VAT) compared to €1.6 million (including VAT) for the same period in 2024.
Kaufman & Broad currently has on marketing or to sign 55,500 Sq. m of office space and approximately 144,600 Sq. m of logistics space. The group has 49,300 Sq. m of office space and approximately 26,600 Sq. m of logistics space under study. In addition, 116,600 Sq. m of office space and nearly 12,700 Sq. m of logistics are currently under construction. Finally, the company has nearly 13,500 Sq. m of office space to be built in DPM (delegated project management).
As of February 28, 2025, Backlog housing stood at €1,983.4 million (excluding VAT) compared to €1,993.3 million euros (excluding VAT) for the same period in 2024 and represented 26.0 months of business compared to 25.8 months of business at the end of February 2024. As of February 28, 2025, Kaufman & Broad had 109 housing programmes under marketing, representing 1,518 housing units (126 programmes and 1,517 housing units as at the end of February 2023).
The housing land portfolio represents 31,180 units and is down 4.6% compared to the end of February 2024 (32,684 units). At the end of February 2024, it represented over 5 years of business. In addition, 85% of the housing portfolio is located in tight areas, representing 26,465 housing units as of February 28, 2025.
In the 1st quarter of 2025, the group plans to launch 31 new programmes for 1,958 units, of which 7 in the Paris area representing 627 units and 24 in the Regions representing 1,331 units.
As of February 28, 2025, the Commercial Property Backlog amounted to €473.1 million excluding VAT compared to € 592.8 million excluding VAT for the same period in 2024.
Total sales amounted to €250.1 million (excluding VAT), compared to €228.0 million in the same period in 2024.
Housing revenue amounted to €205.6 million (excluding VAT), up 4.3% from €197.2 million (excluding VAT) in 2024. It represents 82.2% of the total group's revenue.
Revenue from the Apartments business was €195.1 million (excluding VAT) (vs. €181.7 million euros (excluding VAT) at end February 2024). Revenue for the Commercial Property division was €40.3 million (excluding VAT), compared to €27.2 million (excluding VAT) over the same period in 2024. Other activities generated revenues of €4.1 million (excluding VAT) (including €2.4 million in revenues from the operation of student residences) compared to €3.7 million (excluding VAT) (including €2.0 million in revenues from the operation of student residences).
At February 28, 2025, gross profit amounted to €49.2 million, compared with €45.9 million in the same period in 2024. The gross margin was 19.7% compared to 20.1% in the same period of 2024.
Current operating expenses amounted to €29.8 million (11.9% of sales), compared to €29.1 million in the same period in 2024 (12.8% of sales). Current operating income amounted to €19.3 million compared to €16.8 million in 2023. Operating Margin stood at 7.7%, compared with 7.4% in 2024.
At the end of February 2025, consolidated net income amounted to €14.5 million, compared with the same period in 2024 when it amounted to €14.3 million. Non-controlling interests amounted to €2.9 million in the first quarter of 2025, compared with €3.2 million in 2024. Attributable Net income was €11.6 million compared with €11.0 million in 2024.
The positive net cash position (excluding IFRS 16 debt and Neoresid put debt) at February 28, 2025 was €376.1 million compared with a positive net cash position (excluding IFRS 16 debt and Neoresid put debt) of €397.6 million at the end of November 2024. Cash and cash equivalents amounted to €482.7 million at February 28, 2025, compared with €502.9 million at November 30, 2024.
Working capital requirements amounted to €-250.0 million at February 28, 2025, or -22.8% of sales, compared with €-289.2 million at 30 November 2024 or -26.9% of sales.
The Board of Directors of Kaufman & Broad SA, which met on 26 February 2025, decided to propose to the Shareholders' Meeting of 6 May 2025 the payment of a dividend of €2.20 per share.
To date, the outlook set in January for the whole of 2025 has been maintained: Sales are expected to increase by around 5%. The Operating Margin rate or EBIT rate is expected to be between 7.5% and 8% and net cash (a ) is expected to remain significant after taking into account the repayment of the debt due May 2025 of €100M and the payment of a dividend of nearly €43M for fiscal year 2024, i.e. €2.20 per share, submitted for approval by the Annual shareholders' Meeting on May 6.
(a) Excluding IFRS 16 and Put Neoresid debt
This press release is available at www.corporate.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 orders not yet recorded.
Leases before completion (BEFA): Leases before completion consists for a user to rent a building even before its construction or its restructuring.
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 from operations after changes in working capital and tax paid less net capital expenditure for the year.
Operating cash flow or cash flow from operating activities is equal to cash flow from operating activities after working capital and tax paid.
Cash flow: Cash flow from operations after cost of debt and tax is equal to consolidated net income adjusted for the share of income from associates, joint ventures and operations in the process of disposal and calculated income and expenses.
Financial resources: corresponds to cash and cash equivalents plus undrawn credit lines at date
CDP : (formerly Carbon Disclosure Project): Measuring the environmental impact of companies.
Take-up period : the take-up rate period for inventories is the number of months required for available homes to be sold if sales continued at the same pace as in previous months, being the outstanding housing (available offer) per quarter divided by the orders per quarter elapsed themselves divided by the number of quarters of the period of orders considered.
Dividend The dividend is the portion of the Company's net annual profit distributed to shareholders. Its amount, proposed by the Board of Directors, is submitted to the shareholders for approval at the General Meeting. It is payable within a maximum of 9 months after the end of the financial year.
EBIT: The EBIT corresponds to the operating income for the period, calculated at the gross margin deducted by operating costs for the current period.
Gross financial debt or financial debt: The gross financial debt is composed of long-term and short-term financial liabilities, hedging financial instruments relating to liabilities composing the gross financial debt, and interest accrued online items in the balance sheet which constitute the gross financial debt.
Net indebtedness or net financial debt: The net debt of a company is the balance of its gross financial debts on the one hand, and its cash and financial investments forming its “active cash” on the other hand. It represents the credit or debit position of the company vis-à-vis third parties and outside the operating cycle.
Investment grade : investment grade means that a financial instrument or a company has a relatively low risk of default.
EHU: the EHU (Equivalent Housing Units delivered) are a direct reflection of the activity. The number of ‘EHU’ is equal to the product (I) the number of housing units in a given programme for which the notary deed of sale has been signed and (II) the ratio of the amount of land expenditure and construction expenditure incurred by the group on the said programme to the total expenditure budget of the said programme.
Gross margin: corresponds to revenues less cost of sales. The cost of sales includes the price of land, related land costs and construction costs.
Commercial offer: it is represented by the sum of the stock of housing available for sale on the date in question, i.e. all the housing units not reserved on that date (minus the unopened commercial units).
Land portfolio : This includes land to be developed. I.e. land for which a deed or a promise to sell has been signed, as well as land under study, i.e. land for which an deed or promise to sell has not yet been signed.
Debt-to-equity ratio (or gearing): This is the ratio of net debt (or net financial debt) to the company's consolidated equity. It measures the risk of the company’s financial structure.
Orders: measured in volume (Units) and in value, they reflect the group’s commercial activity. Their inclusion in revenues is conditional on the time required to transform a reservation into a notarized deed of sale, which generates the income statement. In addition, in multi-family housing programs including mixed-use buildings (apartments, business premises, shops, offices), all surfaces are converted into housing equivalents.
Orders (in value) : They represent the value of the real estate from the signed reservation contracts including all taxes for a given period. They are mentioned net of the withdrawals noted during the said period.
Managed housing: Managed residences, or service residences, are real estate complexes made up of housing (Houses or apartments) for residential use offering a minimum of services such as reception, supply of linen, cleaning and maintenance of housing as well as the provision of breakfast. There are several types of residences: Student residences are apartment complexes, mostly studios equipped with a kitchenette and furnished, located close to schools and universities and close to public transport; tourist residences, located in high potential tourist areas, offer in addition to the usual services of infrastructures such as swimming pools, sports grounds, sometimes saunas, hammams, whirlpool baths, children's club; business residences are an alternative to traditional hotels, consisting of studios (approximately 80%) and 2-rooms, located in the city center or near important business centers and systematically well served; finally, senior residences (including also residences for dependent or non dependent elderly people - Ehpad), which make it possible to anticipate the aging of the population, accommodating people from 55 years and beyond; their clientele is mixed: Tenants and owners.
CSR (Corporate Social Responsibility): Corporate Social Responsibility (CSR) is the contribution of companies to the challenges of sustainable development. The approach consists of companies taking into account the social and environmental impacts of their activity in order to adopt the best possible practices and thus contribute to the improvement of society and the protection of the environment. CSR makes it possible to combine economic logic, social responsibility and eco-responsibility (definition of the Ministry of Ecology, Sustainable Development and Energy).
SBTi : the Science Based Targets initiative is an international organisation that contributes to companies' commitment to combating global warming, in particular by assessing and validating their climate targets.
Scope 1, 2 and 3: scope 1: Direct greenhouse gas emissions (including vehicle fuel) ▪ Scope 2: Indirect energy related greenhouse gas emissions ▪ Scope 3: Other indirect emissions (including production and use of our production).
Sell-Through rate: The Sell-Through rate (Rst) represents the percentage of initial inventory that sells monthly on a real estate program (sales/month divided by initial inventory); i.e., monthly net orders divided by the ratio of beginning-of-period inventory plus end-of-period inventory divided by two.
EBIT rate (or OCR) rate: Expressed in percentages, corresponding to the operational income so far with operational costs to-date deducted from gross margin, divided by the turnover
Cash and cash equivalents: This corresponds to cash and cash equivalents on the assets side of the balance sheet, i.e. all cash on hand (available banks and cashiers), marketable securities (short-term investments and term deposits) and reserve balances.
Net cash: It corresponds to ‘negative’ net debt, or ‘negative’ net financial debt, as for the company the balance of cash and financial investments forming its ‘active cash’ is greater than the amount of its gross financial debts (or gross financial debt).
Units: Units define the number of dwellings or dwelling equivalent (for mixed programs) of a given program. The number of housing equivalent units is determined by relating the surface area by type (business premises, shops, offices) to the average surface area of the housing units previously obtained.
Sale before completion (VEFA) : The Sale before completion is the contract by which the seller transfers immediately to the purchaser his rights on the ground as well as the property of the existing constructions. The future works become the property of the purchaser as they are executed; the purchaser is obliged to pay the price as the works progress. The seller retains the powers of the project owner until the work is accepted.
APPENDICES
Primary consolidated data
(1 ) Ebit corresponds to current operating income cad at gross margin less current operating expenses. (2 ) Based on the number of shares comprising the share capital of Kaufman & Broad S.A, i.e. 19,862,022 shares at the end of February 2025 and February 2024. (3 ) including 4.1 million euros in revenue from the operation of student residences at 28 February 2025 and 3.7 million euros at 29 February 2024.
Consolidated income statement
* Information not audited and not approved by the Board of Directors
Consolidated balance Sheet
* Information not audited and not approved by the Board of Directors
Regulatory filing PDF file File: KBSA_CP T1 2025_VFinale_UK |
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2116606 11-Apr-2025 CET/CEST
Source
Kaufman & Broad SA
Provider
EQS Group
Company Name
KAUFMAN ET BROAD
ISIN
FR0004007813
Symbol
KOF
Market
Euronext