Press Release
Paris, September 28, 2018
Results for the FIRST NINE MONTHS
2018
Further reduction in the take-up period to 6.2
months
31.8% growth in adjusted EBIT
Positive net cash position of €36.7
million
Gross cash in hand of €289.7 million
(9m 2018 vs 9m 2017)
€1,579.7 million including VAT (+23.8%)
5,981 units (+1.7%)
-
Business property: €346.2 million
-
Take-up period for Housing* :
6.2 months vs 6.9 months,
i.e. -0.7 months
(9m 2018 vs 9m 2017)
Of which, Housing: €886.9 million (+8.1%)
Gross margin:
€211.8 million (+16.5%)
Adjusted EBIT:
€106.3 million (+31.8%)
Attributable net income:
€51.8 million (+55.9%)
Cash net of financial debt:
€36.7 million vs €(33.1) million at end 2017
(€314.7 million at end August 2017)
(9m 2018 vs 9m 2017)
Of which Housing: €1,822.3 million
(+19.1%)
29,766 units (+5.7%) |
Kaufman & Broad SA announced today its results for the first
nine months of the 2018 financial year (from December 1, 2017 to
August 31, 2018).
Nordine Hachemi, Chairman and Chief Executive Officer of Kaufman
& Broad, made the following comments:
"The results for the first nine months of 2018 are
consistent with the performance of the 1st half and
confirm the quality of the Kaufman & Broad
fundamentals. They highlight the ability of its growth model
to generate profitability and cash flow, while
sustaining its long-term distribution capacity and reinforcing its
financial strength and development prospects.
Overall orders in terms of value increased by
23.8% (+5.7% for Housing alone, with a take-up period down again*).
The increase in the land reserve and order backlog confirm our
capacity to sustain long-term growth. In particular, in the Housing
segment, the backlog grew by 19.1%, enabling us to continue to
rigorously manage our land reserve, which represents more than
three years of commercial activity. In a market in which it is
still anticipated that sales will fall over the year, these
commercial results show that our commercial offer corresponds to
customer demand.
The business property segment also continued to
perform extremely well, with net orders of €346.2 million
(including VAT).
The 31.8% rise in adjusted EBIT shows our mastery
of sales prices and operating expenses. The working capital
requirement continues to be managed in an environment of growth in
turnover and the order backlog. This results in a reduction in debt
of nearly €70 million with respect to end 2017 and a positive net
cash position of €36.7 million at the end of August.
All these elements led to a growth in
shareholders' equity of close to
€246 million at end August 2018 and a financial capacity of
close to €390 million, for the most part comprising cash in
hand.
The group confirms the forecast growth of its
revenue over the whole year as exceeding 10%. Gross margin is
expected to remain at about 19%, while adjusted EBIT is expected to
increase to about 9%." |
Sales
activities
In the first nine months of 2018,
orders for housing unit orders amounted to €1,233.5 million
(including VAT) in value terms, representing an increase of 5.7%
compared with the first nine months of 2017. In terms of volume,
they increased to 5,981 housing units, up 1.7% over the same period
in 2017.
The take-up period for projects
was 6.2 months over nine months, improving by 0.7 months compared
with the same period of 2017 (6.9 months).
The commercial offer, with 93% of
its programs located in areas of strong demand (A, Abis and B1),
amounted to 4,142 housing units at the end of August 2018 (4,487
housing units at the end of August 2017).
Breakdown of the
customer base
In the first nine months of 2018,
orders by first-time buyers remained stable in value terms
(excluding VAT) compared to the same period of 2017, representing
18% of sales. Orders by second-time buyers grew by 10%,
representing 11% of sales. Orders from investors accounted for 35%
of sales (of which 29% only under the Pinel Law tax scheme). The
proportion of block sales increased by 58% (accounting for 36% of
sales made in the first nine months of 2018). Managed accommodation
(tourism, students, business and seniors) accounted for more than
40% of block sales.
In the first nine months of 2018,
the business property segment registered net orders of €346.2
million, including VAT for one logistics platform and two office
property complexes.
Kaufman & Broad
signed:
- a sale before completion
agreement for the construction of an office building covering
approximately 7,000 sq.m at Eurasanté, a health industry cluster
developed by the Lille metropolitan authority (municipality of
Loos). The building will accommodate the new offices of the
l'Etablissement Français du Sang, with which Kaufman & Broad
had earlier signed a lease before completion.
- a sale before completion
agreement for a business campus at Courbevoie of 24,000 sq.m,
organized into three buildings, including a high-rise
tower.
- a sale before completion
agreement to build a new-generation XXL logistics platform with a
total surface area of 74,000 sq.m at MER for DWS (Deutsche Bank
Asset Management) after signing a lease before completion with the
LAPEYRE Group.
Kaufman & Broad (through its
Concerto subsidiary) has also delivered the joint force logistics
platform in Châtres of 36,000 sq.m, developed on behalf of GROUPAMA
(owner) and the Ministry of Defense (lessee).
Kaufman & Broad is currently
marketing or studying approximately 290,000 sq.m of office premises
and approximately 200,000 sq.m of logistics premises. In addition,
almost 70,000 sq.m of office premises are currently under
construction (notably CDC Habitat Paris 13 and ORA Paris 17
delivered in September 2018) and more than 150,000 sq.m of
logistics premises.
The business property backlog
amounted to €269.4 million at the end of August 2018.
The housing backlog amounted to
€1,822.3 million (excluding VAT) at August 31, 2018, i.e. 17.1
months of business. Kaufman and Broad had 220 home programs on the
market at the same date, representing 4,142 housing units, compared
with 238 programs representing 4,487 housing units at the end of
August 2017.
The housing property portfolio
represents 29,766 units. It is up 5.7% compared with the end of
August 2017, and corresponds to more than 3 years of commercial
activity.
The Group is planning to launch 54
new programs in the 4th quarter of
2018, including 17 in the
Île-de-France Region, which represent 1,682 units, and 37 programs
in the French Regions representing
2,852 units.
Total revenues amounted to
€1,096.3 million (excluding VAT), up 15.7% compared with the same
period of 2017.
Housing revenues amounted to
€886.9 million (excluding VAT), compared with €820.8 million
(excluding VAT) in the first nine months of 2017. They accounted
for 80.9% of the group's revenues. Revenues from the apartments
business were up 5.5% compared with the first nine months of 2017,
and amounted to €835.9 million (excluding VAT). Revenues from
single family homes in communities amounted to
€51.0 million (excluding VAT), compared with €28.2 million
(excluding VAT) in the same period of 2017.
Revenues from the Commercial
property segment totaled €202.8 million (excluding VAT), compared
to €122.9 million (excluding VAT) over the same period in 2017.
The gross margin for the first
nine months of 2018 amounted to €211.8 million, compared with
€181.8 million in 2017. The gross margin ratio was 19.3%,
slightly higher than the level in the same period of 2017
(19.2%).
Current operating expenses
amounted to €113.6 million (10.4% of revenues), compared with
€106.4 million for the same period of 2017 (11.2% of
revenues).
Current operating profit totaled
€98.3 million, compared to €75.4 million in the first nine months
of 2017. The current operating margin ratio was 9.0%, compared with
8.0% in the same period of 2017.
The Group's adjusted EBIT amounted
to €106.3 million in the first nine months of 2018 (compared with
€80.6 million in the same period of 2017). The adjusted EBIT margin
was 9.7% (compared with 8.5% in the same period of 2017).
Attributable net income amounted
to €51.8 million (compared with €33.2 million in the first nine
months of 2017).
The net cash position was €36.7
million at August 31, 2018, compared with net financial debt
of
€33.1 million at the end of 2017, representing an improvement of
€69.8 million. Cash assets (available cash and investment
securities) amounted to €289.7 million, compared with €221.1
million at November 30, 2017. The Group's financing capacity was
€389.7 million (€314.7 million at end August 2017).
The working capital requirement
amounted to €140.9 million (9.2% of revenues on a 12-month rolling
basis), compared with €147.6 million at November 30, 2017 (10.6% of
revenues). The tight control over working capital primarily relies
on the very short take up period for the Group's programs.
The Group believes that its
revenue growth should exceed 10% for the 2018 fiscal year. Gross
margin is expected to remain at about 19%, while adjusted EBIT is
expected to increase to about 9%.
This press release
is available at www.kaufmanbroad.fr
Contacts
Chief Financial
Officer
Bruno Coche
01 41 43 44 73
infos-invest@ketb.com
|
Press Relations |
Media relations: Hopscotch Capital: Violaine Danet
01 58 65 00 77 / k&b@hopscotchcapital.fr
Kaufman & Broad: Emmeline Cacitti
06 72 42 66 24 / ecacitti@ketb.com |
About Kaufman
& Broad - Kaufman & Broad has been designing,
building, and selling single-family homes in communities,
apartments, and offices on behalf of third parties for 50 years.
Kaufman & Broad is one of the leading French
developers-builders due to the combination of its size and
profitability, and the strength of its brand.
The Kaufman &
Broad Registration Document was filed with the French Financial
Markets Authority ("AMF") under No. D.18 0226 on March 29,
2018. It is available on the AMF (www.amf-france.org) and Kaufman & Broad (www.kaufmanbroad.fr) websites. It contains a detailed description of Kaufman
& Broad's business activities, results, and outlook, as well as
the associated risk factors. Kaufman & Broad specifically draws
attention to the risk factors set out in Chapter 1.2 of the
Registration Document. The occurrence of one or more of these risks
may have a material adverse effect on the Kaufman & Broad
Group's business activities, net assets, financial position,
results, and outlook, as well as on the price of Kaufman &
Broad's shares.
This press release does not amount to, and cannot
be construed as amounting to a public offering, a sale offer or a
subscription offer, or as intended to seek a purchase or
subscription order in any country.
Backlog:
Covers, for sales before completion (VEFA): ordered but undelivered
housing units; sales for which a notarized deed of sale has not yet
been signed; and the incomplete portion of undelivered housing
units for which a notarized deed of sale has been signed (for a
program that is 30% complete, 30% is accounted for as sales, and
70% remains in the backlog). The backlog is a summary at any given
point in time that can be used to estimate the revenue remaining to
be recognized in coming months and to confi rm group forecasts - on
the understanding that translating the backlog into revenues
involves uncertainties, especially for orders that have not yet
been offi cially notarized.
Off-plan lease
(BEFA): an off-plan lease involves a customer leasing a
building before it is even built or redeveloped.
Financing
capacity: The positive cash increased by credit facilities not
drawn down as at the date
Take-up
period: The inventory take-up period is the number of months
required for the available housing units to be sold, if sales
continue at the same rate as for the previous units, or the number
of housing units (available supply) per quarter divided by the
orders for the previous quarter, and divided by three in turn.
Adjusted
EBIT: corresponds to current operating profit restated for
capitalized "IAS 23 revised" borrowing costs, which are deducted
from the gross margin.
EHU: The EHUs
(Equivalent Housing Units) delivered are a direct reflection of
business volumes. The number of EHUs is obtained by multiplying (i)
the number of housing units in a given program for which notarized
sale deeds have been signed by (ii) the ratio between the group's
property expenses and construction expenses incurred on said
program and the total expense budget for said program.
Gross margin:
corresponds to revenues less cost of sales. Cost of sales consists
of the price of land, the related property costs, and the
construction costs.
Commercial
offer: is represented by the total inventory of housing units
available for sale at the relevant date, i.e. all housing units
that have not been ordered on that date (minus the sales tranches
that have not been released for marketing).
Property
portfolio: represents all of the land for which any commitment
(contract of sale, etc.) has been signed.
Orders:
measured in volume (units) and in value terms; orders reflect the
group's sales activity. Their inclusion in revenues is conditional
on the time required to turn an order into a signed and notarized
deed, which is the triggering event for booking the income. In
addition, in the case of multi-occupancy housing programs that
include mixed-use buildings (apartments, business premises, retail
space, and offices), all of the floor space is converted into
housing unit equivalents.
Take-up period
ratio: the take-up period ratio represents the percentage of
the initial inventory that is sold on a monthly basis for a
property program (sales per month divided by the initial
inventory), i.e. net monthly orders divided by the ratio between
the opening inventory and the closing inventory, divided by
two.
Units: units
are used to define the number of housing units or equivalent
housing units (for mixed programs) in a given program. The number
of equivalent housing units is calculated as a ratio between the
surface area by type (business premises, retail space, or offices)
and the average surface area of the housing units previously
obtained.
Sale before
completion: a sale before completion is an agreement via which
the vendor transfers its rights to the land and its ownership of
the existing buildings to the purchaser immediately. The future
structures will become the purchaser's property as they are
completed: the purchaser is required to pay the price of these
structures as the works progress. The vendor retains project owner
powers until the works are accepted.
NOTES
Key consolidated
data
€ 000s |
Q3
2018 |
9M
2018 |
Q3
2017 |
9M
2017 |
Revenue |
319,473 |
1,096,337 |
320,264 |
947,940 |
|
278,093 |
886,914 |
282,885 |
820,820 |
|
38,973 |
202,837 |
35,850 |
122,866 |
|
2,408 |
6,587 |
1,529 |
4,254 |
|
|
|
|
|
Gross margin |
61,807 |
211,843 |
61,859 |
181,762 |
Gross
margin ratio (%) |
19.3% |
19.3% |
19.3% |
19.2% |
Current operating
profit |
26,731 |
98,273 |
26,630 |
75,380 |
Current operating margin (%) |
8.4% |
9.0% |
8.3% |
8.0% |
Adjusted EBIT* |
28,706 |
106,258 |
28,498 |
80,597 |
Adjusted EBIT margin (%) |
9.0% |
9.7% |
8.9% |
8.5% |
Attributable net
income |
13,994 |
51,763 |
13,049 |
33,200 |
Attributable net earnings per share (€/share)** |
€0.64 |
€2.37 |
€0.63 |
€1.59 |
* Adjusted EBIT corresponds to current operating profit
restated for capitalized "IAS 23 revised" borrowing costs, which
are deducted from the gross margin.
**Based on the number of
shares that make up Kaufman & Broad S.A.'s share capital, i.e.
20,837,039 shares as at August 31, 2017 and 21,864,074 shares as at
August 31, 2018
Consolidated
income statement*
€ 000s |
Q3
2018 |
9M
2018 |
Q3
2017 |
9M
2017 |
Revenues |
319,473 |
1,096,337 |
320,264 |
947,940 |
Cost of sales |
-257,666 |
-884,494 |
-258,405 |
-766,178 |
Gross
margin |
61,807 |
211,843 |
61,859 |
181,762 |
Selling expenses |
-8,736 |
-26,132 |
-9,196 |
-27,082 |
Administrative
expenses |
-13,906 |
-48,316 |
-15,408 |
-47,949 |
Technical and
after-sales service expenses |
-5,329 |
-16,432 |
-4,454 |
-15,044 |
Development and
program expenses |
-7,105 |
-22,691 |
-
6,171 |
-16,306 |
Current operating profit |
26,731 |
98,273 |
26,630 |
75,380 |
Other non-recurring
income and expenses |
- |
- |
- |
- |
Operating result |
26,731 |
98,273 |
26,630 |
75,380 |
Cost of net financial
debt |
-1,854 |
-6,998 |
-1,266 |
-3,397 |
Other financial income
and expense |
- |
- |
- |
- |
Income tax |
-7,313 |
-27,724 |
-7,407 |
-20,773 |
Share of income
(loss)
of equity affiliates and joint ventures |
1,165 |
3,216 |
709 |
507 |
Net
income of the consolidated entity |
18,730 |
66,767 |
18,666 |
51,717 |
Non-controlling equity interests |
4,735 |
15,004 |
5,617 |
18,517 |
Attributable net income |
13,994 |
51,763 |
13,049 |
33,200 |
*Not approved by the Board of
Directors and unaudited.
Consolidated balance sheet*
€ 000s |
August 31,
2018 |
November 30,
2017 |
ASSETS |
|
|
Goodwill |
68,661 |
68,661 |
Intangible assets |
90,063 |
89,442 |
Property, plant and
equipment |
7,429 |
7,699 |
Equity affiliates and
joint ventures |
11,290 |
14,815 |
Other non-current
financial investments |
2,637 |
2,311 |
Deferred tax
assets |
4,227 |
4,227 |
Non-current assets |
184,307 |
187,155 |
Inventory |
405,161 |
384,882 |
Trade receivables |
345,848 |
340,142 |
Other receivables |
158,876 |
198,968 |
Cash and cash
equivalents |
289,671 |
221,065 |
Prepaid expenses |
1,566 |
1,079 |
Current assets |
1,201,121 |
1,146,136 |
TOTAL ASSETS |
1,385,428 |
1,333,291 |
|
|
LIABILITIES |
|
|
Share capital |
5,685 |
5,479 |
Additional paid-in
capital |
175,550 |
132,670 |
Attributable net
income |
51,763 |
59,118 |
Attributable equity capital |
232,998 |
197,268 |
Non-controlling equity
interests |
12,881 |
18,174 |
Shareholders' equity |
245,879 |
215,442 |
Non-current
provisions |
26,228 |
24,952 |
Non-current financial
liabilities
(portion maturing in >1 year) |
249,658 |
249,615 |
Deferred tax
liability |
88,063 |
60,105 |
Non-current liabilities |
363,950 |
334,672 |
Current
provisions |
1,735 |
1,191 |
Other current
financial liabilities
(portion maturing in <1 year) |
3,291 |
4,542 |
Trade payables |
648,300 |
652,012 |
Other payables |
121,788 |
125,177 |
State - current
taxes |
- |
- |
Prepaid
income |
485 |
255 |
Current liabilities |
775,598 |
783,177 |
TOTAL EQUITY AND LIABILITIES |
1,385,428 |
1,333,291 |
*Not approved by the Board of Directors and
unaudited.
Housing |
Q3
2018 |
9M
2018 |
Q3
2017 |
9M
2017 |
|
|
|
|
|
Revenues (€ million,
excluding VAT) |
278.1 |
886.9 |
282.9 |
820.8 |
|
262.2 |
835.9 |
272.7 |
792.6 |
|
15.8 |
51.0 |
10.2 |
28.2 |
|
|
|
|
|
Deliveries (EHUs) |
1,581 |
5,180 |
1,800 |
5,271 |
|
1,520 |
4,963 |
1,746 |
5,135 |
|
61 |
217 |
54 |
136 |
|
|
|
|
|
Net orders
(number) |
1,832 |
5,981 |
1,779 |
5,879 |
|
1,736 |
5,704 |
1,664 |
5,669 |
|
96 |
277 |
115 |
210 |
|
|
|
|
|
Net orders (€ million,
including VAT) |
369.2 |
1,233.5 |
381.9 |
1,166.7 |
|
341.7 |
1,152.8 |
341.2 |
1,105.3 |
|
27.5 |
80.7 |
40.7 |
61.3 |
|
|
|
|
|
End-of-period
commercial offer (number) |
4,142 |
4,487 |
|
|
|
|
|
End-of-period
backlog |
|
|
|
|
|
1,822.3 |
1,529.9 |
|
1,727.0 |
1,459.2 |
|
95.3 |
70.7 |
|
17.1 |
15.4 |
|
|
|
|
|
End-of-period land reserve (number) |
29,766 |
28,167 |
Business property |
Q3
2018 |
9M
2018 |
Q3
2017 |
9M
2017 |
|
|
|
|
|
Revenues (€ million,
excluding VAT) |
38.9 |
202.8 |
35.8 |
122.9 |
Net orders (€ million,
including VAT) |
- |
346.2 |
108.6 |
108.6 |
End-of-period backlog (€ million, excluding VAT) |
269.4 |
194.7 |
K&B: Results for the first nine
months 2018
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Kaufman & Broad SA via Globenewswire
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