Nexity (NXI) H1 2024 earnings summary

Executive summary

• Operating in a challenging property market with significant declines in housing and commercial investment, but the transformation plan is progressing well, focusing on deleveraging, cost reduction, and urban regeneration.

• Achieved significant deleveraging, reducing net debt by €264 million (31%) in H1 2024, mainly through the sale of the PMI business.

• Positive operating profit of €55 million, with transformation costs offset by capital gains from disposals.

• Leadership position in the market confirmed for the fifth consecutive year, reinforced by solid fundamentals and strategic partnerships.

• Net profit attributable to equity holders rose to €45 million, up from €9 million in H1 2023, driven by the PMI sale.

Financial highlights

• Revenue for H1 2024 was €1.68 billion, down 18% year-over-year (14% like-for-like), reflecting a market downturn and transformation costs.

• Operating profit at €55 million, including €128 million in transformation costs; margin decreased to 3.3%.

• Net debt at end of June 2024 was €579 million, down from €843 million at end 2023.

• Liquidity remains strong at €1 billion, including €750 million in undrawn credit lines.

• Capital gain of €183 million from the disposal of PMI.

Outlook and guidance

• Outlook for 2024 and 2025 remains unchanged: positive operating profit expected in 2024, with improved profitability and further deleveraging anticipated in 2025, barring macroeconomic deterioration.

• Net financial debt targeted below €500 million by end-2025.