Kaufman & Broad (KOF) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was €452.5M, down 46.7% year-over-year due to a strong 2023 base from the Austerlitz project, but gross margin improved to 21.6% and net income was €21.1M.

• Housing orders rose 11.5% in value to €561.2M, with volume up 7.2% to 2,400 units, outperforming a declining market.

• The group maintained a robust financial structure with net cash (excluding IFRS 16 and Neoresid put) of €224.9M at end-May 2024 and financial capacity of €578.9M.

• The company distributed a €2.40 per share dividend in May 2024 and renewed its share buyback program.

• Housing land portfolio exceeds 32,000 lots, with 89% in high-demand areas, covering over 6 years of activity.

Financial highlights

• H1 2024 revenue: €452.5M, down from €848.8M in H1 2023; housing revenue €389.6M (86.1% of total).

• Gross margin: €97.5M (21.6% of sales), up from 16.7% in H1 2023; EBIT: €34.5M (7.6% margin); net income: €21.1M.

• Net cash (excluding IFRS 16 and Neoresid put): €224.9M at end-May 2024, up from €101.7M in May 2023.

• Free cash flow: €90.3M; closing cash: €328.9M; gearing: -80.6%.

• Working capital requirement: €(138.9)M, or -13.7% of sales.

Outlook and guidance

• 2024 full-year revenue expected around €1.1B, with operating profit margin between 7% and 7.5%.

• Group expects to maintain a positive net cash position, excluding IFRS 16 and Neoresid put.

• Guidance assumes stabilization of the socio-political and economic environment.