DJ Kaufman & Broad SA: Q1 2021
Kaufman & Broad SA
Kaufman & Broad SA: Q1 2021
15-Apr-2021 / 18:26 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Press release
Paris, April 15, 2021
Q1 2021 RESULTS
Structural demand for housing still strong in a context of declining building permit allocations
- Overall backlog large and still growing: +5.0% at EUR3,572.4 million
- Housing property portfolio: 36,177 units (+8.2%)
- Financial structure as solid as ever:
- a positive net cash position of EUR21.4 million (excluding IFRS 16 liabilities)
- sizable financing capacity (EUR425.1 million)
- Structurally strong demand from individual buyers and investors for housing and energy-efficient offices
Kaufman & Broad SA has today announced its unaudited results
for the first quarter of fiscal year 2021 (from December 1,
2020 to February 28, 2021). Nordine Hachemi, Chairman and Chief
Executive Officer of Kaufman & Broad, made the following
- Key sales data comments:
(Q1 2021 vs. Q1 2020)
"The results for Q1 2021 came out in line with our expectations
and confirm that Kaufman & Broad's finances are solid, with a
- Total orders: net cash surplus of EUR21.4 million (excluding IFRS 16
liabilities) at the end of the quarter and financing capacity
EUR272.7m incl. VAT vs EUR1,401.5m incl. VAT totaling EUR425.1 million.
- Housing: EUR234.3m incl. VAT vs EUR326.5m incl. VAT They also reflect Kaufman & Broad's capacity to prepare for the
future as the group expanded its land reserve by 8.2% and
1,144 units vs 1,482 units increased overall backlog by +5.0% andHousing backlog by +12.5%
in the Housing segment.
- Commercial: EUR38.4m incl. VAT vs EUR1,075.0m incl. VAT
- Take-up period for Housing*:
In the short term, the calendar of the upcoming elections over
4.9 months vs. 6.8 months (-1.9 months) the next twelve months should add its effects to the absence of
real measures to combat the downward trend in the allocation of
building. In this context, Kaufman & Broad anticipates a level
of its reservations in 2021 comparable to that of 2020.
- Key financial data
(Q1 2021 vs Q1 2020 unless otherwise specified)
In the medium term, Kaufman & Broad is confident that it will
be able to benefit from persistently strong demand from
individual buyers and investors alike. The need for housing is
- Revenue: as substantial as ever, fueled by structural, demographic,
EUR285.9m vs EUR299.2m sociological and environmental factors, and the same applies to
demand for energy-efficient office buildings.
Of which Housing: EUR247.3m vs EUR272.2m
Gross margin: EUR49.4m vs EUR57.1m
- EBIT margin**: 7.7% vs 8.5% Kaufman & Broad made active progress on its strategic
- Attributable net income: priorities throughout the first quarter.
EUR11.8m vs EUR13.2m
- Cash position net of financial debt (excl. IFRS 16 The planning policy continued with the development of projects
liabilities): on industrial, tertiary and commercial wastelands, in
particular on the Reims, Blagnac and Austerlitz station sites.
EUR21.4m vs EUR62.5m at end-Nov. 2020 The success of the sale-before-completion (VEFA) marketing call
for tenders launched by Kaufman & Broad - for a portfolio of
- Financing capacity: 500 housing units nationwide - showed just how apt this new
EUR425.1m development model is.
vs EUR465.2m at end-Nov. 2020
Similarly, the group is currently stepping up efforts to
establish a managed housing portfolio in its capacity as a
developer-investor-operator. Its portfolio of managed housing
- Key growth indicators for students and seniors currently consists of about ten
managed housing units.
(end-Feb. 2021 vs end-Feb. 2020)
Kaufman & Broad has been informed of an appeal against the
- Overall backlog: Austerlitz renovation project. The 2021 guidance range
EUR3,572.4m (+5.0%) announced in January and summarized below will therefore be
fine-tuned mid-July, once the consequences of the appeal lodged
Of which Housing: EUR2,332.6m (+12.5%) against the project's building permit have been fully assessed.
- Housing property portfolio:
36,177 units (+8.2%) Revenue for fiscal year 2021 as a whole should come out at
around EUR1.3 billion. If all the administrative authorizations
required for the Austerlitz renovation project have been
obtained by the end of the appeals process in 2021, this
revenue figure could rise to EUR1.6 billion.
In the first scenario, the EBIT margin would be similar to that generated in 2020; in the second, it could return to the levels achieved in previous years.
All these guidance targets are based on the assumption that the current economic, social and the current health situation stabilized. - Sales activity - Housing
Housing orders in value terms totaled EUR234.3 million (including VAT) in Q1 2021 compared with EUR326.5 million in Q1 2020. In volume terms, they amounted to 1,144 housing units (1,482 in Q1 2020).
The take-up period for projects was 4.9 months over the three months, i.e. a 1.9-month improvement compared with Q1 2020 (6.8 months).
Property supply, with 97% of housing units located in high-demand, low-supply areas (A, A-bis, and B1), totaled 1,809 units at end-February 2021 (3,315 units at end-February 2020).
Breakdown of the customer base
Housing orders placed by first-time buyers accounted for 9% of sales in value terms (including VAT) compared with 11% in Q1 2020. Second-time buyers accounted for 6% of sales versus 9% in Q1 2020. Orders from investors accounted for 35% of sales (of which 24% under the Pinel incentive scheme alone). Lastly, the share of block sales increased significantly and corresponded to 51% of orders by value (including VAT) compared with 36% in Q1 2020. - Commercial
The Commercial segment recorded net orders of EUR38.4 million (including VAT) in Q1 2021.
Kaufman & Broad currently has around 130,000 sq.m of office space and around 68,000 sq.m of logistics space under marketing or under study. It also has close to 95,000 sq.m of office space in the process of being built or due to start up in the coming months, along with more than 78,000 sq.m of logistics space. Lastly, it has around 110,000 sq.m of office space transactions yet to finalize. - Leading sales and development indicators
The Housing backlog at February 28, 2021 totaled EUR2,332.6 million (excluding VAT) versus EUR2,073.2 million (excluding VAT), corresponding to 23.7 months of activity versus 18.6 in Q1 2020. Kaufman & Broad had 140 housing programs on the market at that same date, corresponding to 1,872 housing units (versus 181 programs corresponding to 3,359 housing units at the end of 2020).
The Housing property portfolio consists of 36,177 units. It was up 8.2% compared with end-February 2020 and corresponds to more than 5 years of sales activity.
Housing property portfolio represents 96% projects located in high-demand, low-supply areas, for 34,840 housing units at February 28, 2021.
The group plans to launch 18 new programs in Q2 2021, including 11 in Île-de France (709 units) and 7 in other French regions (425 units).
The Commercial backlog at end-February 2021 totaled EUR1,239.8 million compared with EUR1,048.1 million (excluding VAT) at end-February 2020. - Financial results - Business volumes
Overall revenue totaled EUR285.9 million (excluding VAT) compared with EUR299.2 million in Q1 2020.
Housing revenue amounted to EUR247.3m (excluding VAT) compared with EUR272.2 million (excluding VAT) in 2020. This represents 86.5% of group revenue.
Revenue from the Apartments business came to EUR227.9 million (excluding VAT) versus EUR245.9 million (excluding VAT) in Q1 2020.
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