Kaufman & Borad SA Kaufman & Broad SA: Results for the first nine months of 2019 30-Sep-2019 / 17:36 CET/CEST Dissemination of a French Regulatory News, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Press release Paris, September 30, 2019 Results for the FIRST NINE MONTHS of 2019 · Growth in overall backlog of 5.8%, i.e. EUR2.2 billion · Full-year guidance confirmed: · Growth in net income · The aim is to submit a proposal to the Board of Directors to pay a dividend of at least EUR2.50 per share for fiscal year 2019 Kaufman & Broad SA today announced its results for the · Key sales data first nine months of fiscal year 2019 (from December 1, 2018 to August 31, 2019). Nordine Hachemi, Chairman and (9m 2019 vs. 9m 2018) Chief Executive Officer of Kaufman & Broad, made the following statement: · Housing orders: "The results for the first nine months of 2019 are in line with EUR1,146 million (-7.1%) our expectations and with our first-half performance. They confirm that Kaufman & Broad's business model has the capacity 5,626 units (-5.9%) to deliver solid shareholder returns over the long term. This capacity is based on its cash-generating profitability, · Commercial orders: EUR118.7 shoring up its financial million strength and growth prospects. · Take-up period for Housing*: 5.7 months vs. 6.2 months, i.e. -0.5 months The new housing market continues to enjoy solid demand, as reflected in take-up rates which remain healthy. However, as we had predicted at · Key financial data the end of the first half, the issuance of building permits is slowing down due to the upcoming elections and this (9m 2019 vs. 9m 2018) took a toll on new project launches in the third quarter. This is set to continue over the coming months, resulting in a decrease in orders of about 10% in the market over the full year; this is also likely to be the case at Kaufman & Broad. · Revenue: EUR1,029.7 million (-6.1%) Of which Housing: EUR920.1 million (+3.7%) Despite such unfavorable conditions, Kaufman & Broad delivered another set of solid · Gross margin: economic and financial performances in the first nine months of the fiscal year. EUR198.4 million (19.3% of revenue) · Adjusted EBIT: The increase in our land EUR96.6 million (9.4% of reserve (+12.4%) and in our revenue) overall backlog (+5.8%) is evidence of our ability to · Attributable net income: generate sustainable growth and EUR54.0 million (+4.2%) give us a good view of the years to come. · Cash net of financial debt: EUR3.6 million vs. EUR36.7 million at end-August 2018 In these circumstances, Kaufman & Broad's revenue for the current year should amount to around EUR1.5 billion, with about 5% growth in the Housing segment and a decline in the · Key growth indicators Commercial Property segment in line with expectations. (9m 2019 vs. 9m 2018) The gross margin ratio is expected to hold at around 19% and the adjusted EBIT ratio should remain above 9%. · Overall backlog: EUR2,213.5 Last of all, the expected million (+5.8%) growth in attributable net income combined with a still healthy financial structure should result in a proposal Of which Housing: EUR2,002.5 being submitted to the Board of million (+9.9%) Directors to pay out a dividend of at least EUR2.50 per share for fiscal year 2019." · Property portfolio: 33,511 units (+12.4%) Sales activity · Housing segment Housing orders in the first nine months of 2019 amounted to EUR1,146.4 million (including VAT) in value terms, which is 7.1% lower than in the first nine months of 2018. In volume terms, they corresponded to 5,626 housing units, which is 5.9% lower than in the same period in 2018. The take-up period for projects was 5.7 months during the first nine months of the year, which is 0.5 months better than in the same period in 2018 (6.2 months). Housing supply, 98% of which concerns programs located in high-demand / low-supply areas (A, Abis and B1), totaled 3,569 units at end-August 2019 (4,142 housing units at end-August 2018). Breakdown of the customer base During the first nine months of 2019, orders (excluding VAT) placed by first-time buyers were lower in value terms than in the same period in 2018 and corresponded to 16% of sales. Second-time buyers accounted for 9% of sales vs. 11% in the same period in 2018. Orders placed by investors accounted for 34% of sales (of which 27% under the Pinel Scheme alone). The portion of block sales increased by 6%, representing 41% of sales in the first nine months of 2019; over 44% of these sales were of managed housing (for tourists, students, business travelers and seniors). · Commercial Property segment The Commercial Property segment recorded net orders of EUR118.7 million (including VAT) in the first nine months of 2019. Kaufman & Broad is currently marketing or studying around 300,000 sq.m of office space and around 125,000 sq.m of logistics and industrial space. It is also currently building around 71,000 sq.m of office space. The APAVE head office for the South-West region in Toulouse was delivered recently and will be inaugurated soon. Earlier in the year the group delivered the POLARIS building in Nantes (6,500 sq.m) whose user is the Nantes metropolitan council. Last of all, work is still underway on the following buildings: Highlight in Courbevoie (31,000 sq.m, of which 24,000 sq.m of office space and 7,000 sq.m of hotel accommodation), Green Oak in Arcueil (10,700 sq.m of office space with a mixed wood / concrete structure), as well as buildings in Bordeaux (27,000 sq.m of office space for Caisse des Dépôts) and Lille (7,000 sq.m, EFS head office). The Commercial Property backlog at end-August 2019 amounted to EUR210.9 million. · Leading sales and development indicators The Housing backlog at August 31, 2019 amounted to EUR2,002.5 million (excluding VAT), i.e. 18.1 months of business. At the same date, Kaufman and Broad had 208 housing programs on the market, corresponding to 3,569 housing units (compared with 220 programs representing 4,142 housing units at end-August 2018). The Housing property portfolio amounts to 33,445 units. This is 12.4% higher than at end-August 2018 and corresponds to over 3 years of sales activity. · Financial results · Business volumes Total revenues amounted to EUR1,029.7 million (excluding VAT), down 6.1% compared with the same period in 2018. Revenue from Housing came to EUR920.1 million (excluding tax) vs. EUR886.9 million (excluding tax) in the first nine months of 2018. This accounts for 89.4% of group revenue. Revenues from the Apartments business were up just 1.8% compared with the first nine months of 2018 and amounted to EUR850.7 million (excluding VAT). Revenue from Single-family Homes in Communities totaled EUR69.4 million (excluding VAT) vs. EUR51.0 million (excluding VAT) in the same period in 2018. Revenues from the Commercial Property segment totaled EUR104.7 million (excluding VAT), compared with EUR202.8 million for the same period in 2018. · Profitability highlights The gross margin for the first nine months of 2019 totaled EUR198.4 million compared with EUR211.8 million in 2018. The gross margin ratio was 19.3%, holding steady compared with the same period in 2018.
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