TARGETS MET
2019 TURNOVER UP 4.6% TO €840.8 MILLION
SUSTAINED SALES MOMENTUM AND STRENGTHENING OF A GLOBAL PLAYER POSITION
ACQUISITION OF THE COMPANY TOITS DE FRANCE
| Consolidated (€M) unaudited | 12 months | 4th quarter | ||||
| 2019 | 2018 | % change | 2019 | 2018 | % change | |
| sales | 840.8 | 804.0 | +4.6% | 239.4 | 222.1 | +7.8% |
| of which home building | 693.3 | 690.4 | +0.4% | 186.4 | 185.3 | +0.6% |
| of which Renovation | 141.9 | 109.3 | +29.9% | 49.8 | 33.8 | +47.5% |
| of which Other (development & promotion) | 5.6 | 4.3 | +30.0% | 3.2 | 3.0 | +6.7% |
Annual revenue up by 4.6%.
The group Hexaom achieves another year of growth with a 2019 revenue of €840.8 million, up 4.6% compared to 2018. Each business sector contributed to this performance, especially the renovation sector with a revenue of €141.9 million up by 29.9%.
The Plaire group -consolidated since mid-December- contributed €1 million in revenue. At constant scope, the group's revenue at December 31st, 2019 amounts to €839.8 million, up 4.5%.
In the last quarter, the group recorded a 7.8% increase in production, reaching €239.4 million. The home building business posted revenue of €186.4 million, up 0.6%. The renovation business was up 47.5% during the last quarter, leveraging momentum from the B2B segment with a revenue up by 80%.
An order book that reflects an increasingly transversal position
The group Hexaom continues to outperform the home building market. In the home building business, excluding the Plaire group, Hexaom recorded an excellent performance of 7,654 sales at December 31st, 2019, representing revenue of €924.2 million. Organic growth reaches 6.9% in numbers and 9% in value, compared to 2018. The number of sales in the last quarter contracted by 3% but they remain stable in value compared to the same period in 2018, which saw a slight rebound that limited the decline in the 2018 order book.
Sales for the renovation business are up 34.9% to €210.7 million. They represent 19% of the Hexaom group's overall order book, as the group continues to successfully pursue its diversification strategy.
The cumulative order intake for the B2B segment at December 31st, 2019, was up 52.5% to €162.6 million versus €106.60 million during the same period in 2018. In the last quarter, sales more than doubled reaching €71 million. The B2C segment rebounded, as expected, by +18.1% in the second half. Over the full year, its sales amounted to €48.1 million, down by only 3% compared with 2018.
Improved profitability in the second half of 2019 and favorable trends for 2020
As expected, the group's profitability improved in the second half of the year due to the combined effect of the disappearance of non-recurring costs related to the celebrations of the 100th anniversary and a significant improvement in the operating profitability of the B2B renovation sector.
The group is confident for 2020 thanks to a strong intake of orders in 2019, and its recognized capacity to increase its market share in home building and develop its high potential growth relays.
The Plaire group's revenue of €30 million will fully contribute to Hexaom's revenue as of January 1st, 2020.
Earlier this year, Hexaom also acquired Toits de France, a home builder with over 35 years experience, to increase its presence and coverage in the south of France. This company is based in Nîmes and will continue to be managed by its founder Robert Criado and his daughter Stephanie. It posted revenue of more than €3 million and an operating profit around 7%.
Hibana, a real estate development subsidiary, will contribute to the group's revenue starting in 2020. It is in line with its development plan and has to date launched four real estate programs. It aims to reach a production of €100 million by 2023.
Finally, the prolongation of interest-free loans in zones B2 and C is good news for the group; however, the group will continue to implement its action plan to reduce its exposure to these loans.
With a growth and diversification strategy which is proving successful, a solid reputation, and an extremely healthy financial structure, the group Hexaom has what it takes to strengthen its position as a major player in the French housing market.
Next press release: 2019 annual results, March 16th, 2020 after market close.
ABOUT THE GROUP
Since 1919, five generations of the same family have successively taken over the helm of Hexaom, a group that drives and federates an ecosystem of 40 brands and subsidiaries with complementary expertise. A unique story of family entrepreneurship characterized by its stability in a complex market sector.
The group is a leader in the home building, renovation, and first-time owners' markets in France. It currently serves more than 9,500 customers a year, has built more than 100,000 homes, has carried out over 75,000 renovations, employs over 2,000 people, and recorded sales for €804 million in 2018.
Hexaom securities are eligible for inclusion in company retirement savings plans.
Hexaom is listed on Euronext Paris - Compartment B.
ISIN code: FR 0004159473 - Indices: CAC® Small, CAC® Mid & Small, CAC® All-Tradable, CAC® All-Share
CONTACTS
| Hexaom Patrick Vandromme Chairman and Chief Executive Officer Tel: 02 33 80 66 61 E-mail pvandromme@hexaom.fr | EDIFICE Communication Nathalie Boumendil Analyst/Investor/Press Relations Tel: 06 85 82 41 95 E-mail nathalie@edifice-communication.com |
| Jean-Christophe Godet Chief Financial Officer Tel: 02 33 80 66 61 E-mail finances@hexaom.fr |
GLOSSARY:
Gross order intake: a contract is recorded in gross order intakes on signature by the client and acceptance by our sales administration departments (control of accounting documents and validity of the project's financing plan, return of the field survey, verification and acceptance of the selling price). The amount recorded corresponds to the pre-tax turnover generated on this contract.
Order book: all recorded orders which have not been cancelled or transferred to "Work in progress".
Work in progress: all orders for which the suspensive conditions to begin work have been met (building permit and customer financing obtained, customer ownership of the land) and which have not been accepted (delivered) by the customer.
Evolution of sales at constant scope: evolution of sales of periods to be compared, recalculated as follows:
- In the event of acquisition, the turnover of the acquired company that has no correspondence in the comparison period is deducted from the current period,
- In the event of transfer, the turnover of the transferred company that has no correspondence in the current period is deducted from the comparison period
B2B (business to business): describes the sale of goods and services to companies.
B2C (business to consumer): describes the sale of goods and services to private individuals.
Net contribution margin: corresponds to the difference between the sales generated by contracts and the costs directly related to these contracts (construction costs, sales or broker commissions, taxes, insurance, etc.).
Cash position: includes cash on hand and demand deposits.
Debt: includes all current and non-current financial liabilities.
Cash net of debt: available cash less debt.
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