Press release
Paris, July 11, 2017
Results for the 1st HALF OF
2017
-
Strong sales and financial
results in a market that remains favorable
-
Marked improvement in the
quality of the financial structure
-
Upgrade of the prospects for
annual revenues
(H1 2017 compared with H1 2016)
Volume: 4,100 housing units (+16.6%)
Value: €784.8 million including VAT (+16.5 %)
6.3 months compared with 7.8 months in H1 2016
Key financial data
(H1 2017 compared with H1 2016)
Of which Housing Units: €537.9 million (+19.1%)
- Gross margin:
€119.9 million compared with €109.0 million in H1 2016
- Adjusted EBIT:
€52.1 million compared with €49.4 million in H1 2016
- Attributable net
income
€20.2 million compared with €18.1 million in H1 2016
- Net financial debt:
€59.4 million compared with €85.1 million at the end of
2016
Of which Housing Units:
€1,487.9 million (+21.9% compared with H1 2016)
|
Kaufman & Broad SA announced its results for the 1st half of the
2017 financial year (from December 1, 2016 to May 31, 2017)
today.
Nordine Hachemi, Chairman and Chief Executive Officer of Kaufman
& Broad, made the following comments:
The results for the 1st half of 2017
confirm the strength of Kaufman & Broad's business model, which
generated balanced and sustained growth across all of its sales and
financial indicators.
Housing unit orders increased by around 17% in
both volume and value terms. Their rise was driven by all of our
customer segments. Furthermore, the marketing period was shortened
by 1.5 months between one first half and the next.
The increases of 18% in the land bank and of 22%
in the backlog confirm the ongoing strong growth
momentum.
Kaufman & Broad remained very active in the
Commercial Property segment. Projects on the market represent a
potential order volume of between €150 and €200 million over the
next six to nine months.
The Group's financial structure has been
significantly strengthened. On the one hand, the economic
performance of our activities resulted in a good profitability
combined with the control of working capital requirements.
Secondly, the success of the € 150 million Euro-bonds has allowed
the average maturity of the debt to be extended by 2 years.
Finally, the share dividend payment option was widely chosen by our
shareholders, with a 74% success rate, allowing the Group to
reinforce its equity. All of these factors led to an increase in
financial capacity, which stood at nearly € 290 million at the end
of May 2017.
Kaufman & Broad matches its customers'
purchasing power very closely when developing its projects, in a
New Housing market that remains very buoyant, and is driven by
balanced tax arrangements as well as by interest rates that are
still very low.
Barring any change to the tax arrangements in
effect, and based on a moderate increase in interest rates, the
strong momentum in the housing market observed in the 1st half now
leads us to expect that market to grow by around 5% of the year as
a whole.
Against this backdrop, the Group believes that the
increase in its revenues over the 2017 financial year as a whole
should be at least 10%, while the gross margin and adjusted EBIT
ratios will remain around 19% and 8.5% respectively. Furthermore,
net financial debt should amount less than €80
million" . |
Sales
activities
Housing unit orders in volume
terms amounted to 4,100 housing units in the 1st half
of 2017, i.e. an increase of 16.6% compared with the 1st half of
2016.
In value terms, housing unit orders amounted to €784.8 million
(including VAT) an increase of 16.5% compared with the same period
in 2016.
4,005 apartments with a value of
€764.2 million (including VAT) were ordered during the 1st half, i.e.
an increase of 17.5% in volume terms and of 18.4% in value terms.
Orders of single-family homes in communities represented 95 units,
compared with 108 units in the 1st half of 2016
(€20.6 million (including VAT) compared with €28.0 million
(including VAT) in the 1st half of
2016).
Breakdown of the
customer base
Orders by first-time buyers
increased by 13.8% in value terms (excluding VAT) over the
1st half of 2017
as a whole, while orders from second home purchasers increased by
20.1%. Orders by investors increased by 19.2% (growth of 7.8% for
the Pinel Scheme on a stand-alone basis, where the percentage of
total orders decreased by around 5 points from one first half to
the next, and amounted to 35.3%). Block sales increased by
32.6%.
The marketing period for projects
was 6.3 months in the 1st half of
2017, a decrease of 1.5 months compared with the 1st half of 2016
(7.8 months).
The Commercial Property segment
generated revenues of €87.0 million in the 1st half
of 2017.
In February, Kaufman & Broad
won the tender organized by the Bordeaux Euratlantique EPA with a
view to building a 26,000 m² office building at the foot of the
future TGV station. Furthermore, the Group won a consultation
process in Lille involving a 7,000 m² project in the Eurasanté
Complex. In the Logistics segment, Kaufman & Broad signed three
off-plan leases covering a total surface area of around 150,000
m2.
All of the projects on the market
represent a potential order volume of between €150 and €200 million
over the next six to nine months.
The Commercial Property backlog
amounted to €144.5 million (excluding VAT) at the end of May
2017.
The Housing backlog amounted to
€1487.9 million (excluding VAT), i.e. 15.6 months of business at
May 31, 2017. Kaufman and Broad had 225 housing programs on the
market at the same date, which represent 4,294 housing units,
compared with 200 programs representing 4,577 housing units at the
end of May 2016.
The Housing property portfolio
amounted to 27,296 units, and was up 18% compared with the
portfolio at the end of May 2016. This portfolio represents
potential revenues equivalent to almost four years of business,
Stable compared to November 30, 2016 (4.1 years) and ona one year
basis (3.9 years).
The Group is planning to launch 92
new programs in the 2nd half of
2017, including 32 programs in the Ile-de-France Region, which
represent 2,917 units, and 60 programs in the French Regions, which
represent 4,035 units.
Total revenues amounted to €627.7
million (excluding VAT), an increase of 9.2% compared with the
1st half of
2016.
Housing revenues amounted to
€537.9 million (excluding VAT), compared with €451.6 million
(excluding VAT) in the 1st half of
2016. They accounted for 85.7% of the Group's revenues
Revenues from the Apartments
business were up 20.6% compared with the 1st half of
2016, and amounted to €520.0 million (excluding VAT). Revenues from
Single-Family Homes in communities amounted to €18.0 million
(excluding VAT) compared with €20.6 million (excluding VAT) in the
1st half of
2016.
The Commercial Property segment's
revenues amounted to €87.0 million (excluding VAT) in the
1st half of
2017. The other businesses generated revenues of €2.7 million
(excluding VAT).
The gross margin amounted to
€119.9 million compared with €109.0 million in the 1st half of
2016. The gross margin ratio was 19.1%, or slightly higher than the
level in the 1st half of 2016
(19.0%).
Current operating expenses
amounted to €71.2 million (11.3% of revenues), compared with
€63.3 million[1] in the
1st half of 2016
(11.0% of revenues).
Income from current operations
amounted to €48.8 million, compared with €45.6 million in the
1st half of
2016. The current operating margin was 7.8%, compared with 7.9% in
the 1st half of
2016.
The Group's adjusted EBIT amounted
to €52.1 million in the 1st half of 2017
(compared with €49.4 million in the 1st half of
2016). The adjusted EBIT was 8.3% (compared with 8.6% in the
1st half of
2016).
Attributable net income amounted
to €20.2 million (compared with €18.1 million in the 1st half of
2016).
Kaufman and Broad issued its first
"Euro PP" bond placement amounting to €150 million in May, as part
of a private placement with institutional investors in Europe. This
private placement broke down between a €50 million 7-year tranche
and a €100 million 8-year tranche.
This loan, which was arranged
under favorable market conditions, gives the Group new financial
resources to support its growth. It also provides €100 million to
refinance the existing bank debt, and significantly extends the
maturity of that debt, which increased from 4.3 years at the end of
2016 to 6.2 years at the end of May 2017.
This strengthening of the Group's
financial structure was compounded by the positive impact on the
shareholders' equity of the high number (74% success rate) of
shareholders who opted to receive the 2016 dividend in Kaufman
& Broad shares.
Following these transactions, net
financial debt amounted to €59.4 million on May 31, 2017. Cash
assets (available cash and investment securities) amounted to
€189.4 million, compared with €118.1 million on November 30,
2016.
Working capital amounted to €131.5
million (10.2% of revenues on a 12-month rolling basis), compared
with €129.2 million on November 30, 2016 (10.4% of revenues). The
tight control on working capital primarily relies on the very short
marketing period for the Group's programs.
Kaufman & Broad paid out a
dividend of €1.85 per share in respect of the financial year ended
November 30, 2016, including a share-based dividend option, on June
2, 2017. The issue price for these new shares was set at €30.13,
which corresponds to 90% of the average prices quoted for Kaufman
& Broad shares on the Euronext Paris regulated market during
the 20 trading sessions prior to the day of said General Meeting,
minus the net amount of the dividend of €1.85 per share, rounded up
to the next euro cent.
The option period was opened
between May 16 and May 26, 2017 inclusive. At the close of the
period, shareholders who had opted for payment of the dividend in
shares represented 74% of
Kaufman & Broad S.A.'s shares. 947,136 new shares were issued
in order to pay the share-based dividend, which represents 4.55% of
the share capital, and 4.57% of the voting rights on the basis of
Kaufman & Broad S.A.'s share capital and voting rights on May
31, 2017. Settlement & delivery of the shares, and their
admission to trading on the Euronext Paris regulated market
occurred on June 2, 2017.
Following this transaction, and in
order to keep the number of shares unchanged on a fully-diluted
basis, Kaufman & Broad canceled 947,136 treasury shares. The
overall cash dividend payable to shareholders who did not choose to
have their dividends paid in shares amounted to €7.6 million, and
was paid on June 2, 2017.
The Group believes that the
increase in its revenues over the 2017 financial year should be at
least 10%, while the gross margin and adjusted EBIT ratios will
remain around 19% and 8.5%, respectively. Furthermore, net
financial debt should amount less than €80 million".
This release is
available on the www.kaufmanbroad.fr website
Contacts
Executive Vice-President,
Finance
Bruno Coche
01.41.43.44 73
Infos-invest@ketb.com |
Press Relations |
Camille Petit
Burson-Marsteller
01 56 03 12 80
contact.presse@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 almost 50
years. Kaufman & Broad is one of the leading French
Property Development & Construction companies 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.17.0286 on March 31, 2017. 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 prospects, as well as of
the related risks factors. Kaufman & Broad specifically draws
attention to the risk factors set out in Chapter 1.2 of the
Registration Document. The materialization of one or several of
these risks may have a material adverse impact 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.
Adjusted
EBIT: corresponds to income from current operations restated
for capitalized "IAS 23 revised" borrowing costs, which are
deducted from the gross margin.
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 confirm group forecasts - it
being understood that translating the backlog into revenues
involves uncertainties, especially for orders that have not yet
been officially notarized.
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 (minus the sales tranches that
have not been released for marketing).
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:
Gross margin corresponds to revenues less cost of sales. The cost
of sales consists of the price of land parcels, the related
property costs (taxes, etc.), commissions paid to developers and to
Kaufman & Broad sales staff, as well as fees and commissions
provided for in the agency agreements executed by Kaufman &
Broad in order to sell its real estate programs, construction costs
and borrowing costs that may be directly attributed to program
development.
Land reserve:
This includes land for development (otherwise called the land
portfolio), i.e., the land for which an act or promise of sale was
signed, as well as land under consideration, i.e., the land for
which an act or promise of sale has not yet been signed
Off-plan lease
(BEFA): an off-plan lease involves a customer leasing a
building before it is even built or redeveloped.
Off-plan sale
(VEFA): an off-plan sale is an agreement via which the vendor
transfers their rights to the land and their 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
Management powers until the works are accepted.
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 multiple-dwelling programs that include
mixed-use buildings (apartments, business premises, retail space,
and offices), all of the floor space is converted into housing
equivalents.
Property
portfolio: represents all of the land for which any commitment
(contract for sale, etc.) has been signed.
Program, i.e. the marketing period. For instance, a 4.0% marketing
period corresponds to an estimated marketing period of 25 months,
which represents the number of orders compared with the average
commercial offer for the period.
Take-up
period: The inventory take-up period is the number of months
required for the available housing units to be sold if sales are
maintained at the same pace as in previous months, i.e., housing
units outstanding (offer available) per quarter divided by the
number of orders per quarter ended and with orders in turn divided
by three.
Take-up rate
(Te): The take-up rate (Te) represents the percentage of
initial inventory sold per month in a real estate program
(sales/month divided by initial inventory); i.e., net monthly
orders divided by the beginning of the period inventory ratio plus
the end of period inventory divided by two. NB: The reverse of the
take-up ratio (1/Te) gives the projected duration (in months) of a
program's promotion and marketing, in other words the take-up
period. For example, a 4.0% take-up ratio corresponds to a
projected promotion and marketing of 25 months.
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.
APPENDICES
Key consolidated
data
€ '000s |
H1 2017 |
H1 2016 |
Revenues |
627,676 |
574,799 |
|
537,935 |
451,568 |
|
87,016 |
120,239 |
|
2,725 |
2,992 |
|
|
|
Gross margin |
119,903 |
108,966 |
Gross
margin ratio (%) |
19.1% |
19.0% |
Income from current
operations |
48,750 |
45,630 |
Current operating margin (%) |
7.8% |
7.9% |
Adjusted EBIT* |
52,099 |
49,437 |
Adjusted EBIT margin (%) |
8.3% |
8.6% |
Attributable net
income |
20,151 |
18,147 |
Attributable net earnings per share (€/share)** |
€ 0.97 |
€ 0.87 |
-
Based on the number of shares
that make up Kaufman & Broad S.A.'s share capital, i.e.
20,839,037 shares.
Consolidated
income statement
€ '000s |
S1 2017* |
H1 2016 |
Revenues |
627,676 |
574,799 |
Cost of sales |
-507,773 |
-465,833 |
Gross
margin |
119,903 |
108,966 |
Selling expenses |
-17,886 |
-16,098 |
Administrative
expenses |
-32,541 |
-27,439 |
Technical and
after-sales service expenses |
-10,590 |
-9,793 |
Development and
program expenses |
-10,135 |
-10,006 |
Income from current operations |
48,750 |
45,630 |
Other non-recurring
income and expenses |
- |
- |
Operating income |
48,750 |
45,630 |
Cost of net financial
debt |
-2,131 |
-1,394 |
Other financial income
and expense |
- |
- |
Income tax |
-13,366 |
-14,906 |
Share of income
(loss)
of equity affiliates and joint ventures |
-202 |
-121 |
Net
income of the consolidated entity |
33,051 |
29,209 |
Non-controlling interests |
12,900 |
11,062 |
Attributable net income |
20,151 |
18,147 |
Consolidated
balance sheet
€ '000s |
May 31, 2017* |
30 Nov 2016 |
ASSETS |
|
|
Goodwill |
68,661 |
68,661 |
Intangible assets |
88,532 |
87,570 |
Property, plant and
equipment |
7,667 |
7,449 |
Equity affiliates and
joint ventures |
12,132 |
5,634 |
Other non-current
financial investments |
1,790 |
2,504 |
Non-current assets |
178,782 |
171,818 |
Inventory |
373,926 |
371,381 |
Trade receivables |
352,798 |
375,669 |
Other receivables |
161,723 |
159,772 |
Cash and cash
equivalents |
189,364 |
118,108 |
Prepaid expenses |
1,424 |
1,345 |
Current assets |
1,079,235 |
1,026,275 |
TOTAL ASSETS |
1,258,017 |
1,198,093 |
|
|
LIABILITIES |
|
|
Share capital |
5,418 |
5,418 |
Additional paid-in
capital |
124,043 |
79,119 |
Attributable net
income |
20,151 |
46,035 |
Attributable equity capital |
149,612 |
130,571 |
Non-controlling
interests |
21,619 |
15,196 |
Equity capital |
171,231 |
145,767 |
Non-current
provisions |
23,092 |
23,229 |
Borrowings and other
non-current financial liabilities
(portion maturing in > 1 year) |
248,182 |
191,362 |
Deferred tax
liabilities |
54,949 |
45,471 |
Non-current liabilities |
326,223 |
260,062 |
Current
provisions |
1,696 |
1,499 |
Other current
financial liabilities (portion maturing in < 1 year) |
541 |
11,841 |
Trade payables |
658,536 |
675,146 |
Other payables |
98,239 |
97,382 |
Current tax |
1,082 |
5,858 |
Prepaid
income |
469 |
539 |
Current liabilities |
760,563 |
792,264 |
TOTAL EQUITY AND LIABILITIES |
1,258,017 |
1,198,093 |
Housing |
1st half of 2017 |
1st half of 2016 |
|
|
|
Revenues (€ million,
excluding VAT) |
537.9 |
451.6 |
|
520.0 |
431.0 |
|
18.0 |
20.6 |
|
|
|
Deliveries (EHUs) |
3,471 |
2,798 |
|
3,389 |
2,709 |
|
82 |
89 |
|
|
|
Net orders
(number) |
4,100 |
3,517 |
|
4,005 |
3,409 |
|
95 |
108 |
|
|
|
Net orders (€ million,
including VAT) |
784.8 |
673.5 |
|
764.2 |
645.5 |
|
20.6 |
28.0 |
|
|
|
End-of-period
commercial offer (number) |
4,294 |
4,577 |
|
|
|
End-of-period
backlog |
|
|
|
1,487.9 |
1,220.3 |
|
1,440.9 |
1,177.7 |
|
46.9 |
42.6 |
|
15.6 |
14.6 |
|
|
|
End-of-period land bank (number) |
27,296 |
23,122 |
Commercial property |
1st half of 2017 |
1st half of 2016 |
|
|
|
Revenues (€ million,
excluding VAT) |
87.0 |
120.2 |
Net orders (€ million,
including VAT) |
0.6 |
221.6 |
End-of-period backlog (€ million, excluding VAT) |
144.5 |
238.3 |
[1] Of which expenses €1.1 million relating to the re-IPO
transaction performed in the 1st half of
2016.
KB SA Half year Result
2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions 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
Kaufman and Broad (EU:KOF)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kaufman and Broad (EU:KOF)
Historical Stock Chart
From Sep 2023 to Sep 2024