2022 Q1 REVENUE: UP +13.0% TO €260.6 MILLION
ORDER INTAKE IN LINE WITH OBJECTIVES
|Real Estate Development||12.7||12.7||–|
Production: 13% organic growth in the first quarter of 2022
Hexaom posted revenue of €260.6 million for the first quarter of 2022. Despite a high basis of comparison and longer delivery times in the materials supply chain affecting the entire construction industry, the group’s production increased by 13% compared to the same period last year.
This growth was driven in particular by the Home Building, B2C Renovation, and Land Development businesses:
- The Home Building business brought in revenue of €204.0 million, up 13.9% compared with the same quarter last year.
- The Renovation business contributed €37.4 million to group revenue, up +3.6%.
The B2B renovation business reported a 2.6% decline in revenue to €24.6 million, as the group has decided to temporarily limit growth in this business to focus on improving margins.
The B2C renovation business continued to grow, with an 18.0% increase in quarterly revenue to €12.8 million.
- The Land Development business continues to benefit from positive trends with revenue up 145.1% to €6.4 million. The Real Estate Development business contributed €12.7 million to the group’s quarterly revenue, a level of production equivalent to that of last year on a like-for-like basis, as expected for the first quarter.
Good sales momentum after record 2021 sales from the Home Building business
Home Building Business
Quarterly revenue from the Home Building business is in line with the group’s objectives after a record year in 2021. For the record, order intake for the first quarter of 2021 was up 30.3% in number and 35.6% in value.
At March 31st, 2022, the Home Building order book represented revenue of €232.0 million, down 20.1% in number and 9.3% in value. This level of activity was achieved against a backdrop of sharp price increases to cope with rising construction costs (materials and subcontracting) and changes in regulatory standards (2020 Environmental Regulations).
The average selling price for the quarter rose sharply to €148.3k (excluding tax), compared with €134.5k (excluding tax) at the end of 2021.
The B2C renovation business continues to grow. Renovert and Camif Habitat’s order intake for the quarter reached €12.6 million, up 10%. The Illico Travaux business performed well, with intermediated order intake up 38.5% to €19.4 million.
The more cyclical B2B renovation business stood at €4.1 million, compared with €26.5 million for the same period in 2021. Efforts to restructure this segment are ongoing, and the group aims to achieve an annual order intake of €100 million.
Real Estate and Land Development Businesses
The Land Development business continues to grow at a steady pace. At the end of March 2022, the order book (unreserved inventory) stood at €37.4 million, representing 555 lots.
For the Real Estate Development business, the backlog at March 31st, 2022 was €90.4 million and the total potential inventory represents revenue to be delivered of €312.6 million, i.e. 1,538 housing units.
2022 outlook supported by record sales representing turnover of over €1 billion
Due to the excellent sales performance in 2021 and despite longer construction times, the group’s production for 2022 should once again grow.
However, Hexaom will remain watchful over maintaining its margins in an economic environment marked by tensions over materials and subcontracting (inflation and availability) and with the new 2020 Environmental regulations coming into force.
From a commercial standpoint, the expected full-year trends for each business are as follows:
- While falling short of the record levels achieved last year, revenue from Home Building should continue to be driven by strong interest among the French for this type of housing. Hexaom will nevertheless pay close attention to the consequences of new regulations (2020 Environmental Regulations and the Climate and Resilience Act) and rising interest rates.
- For the B2C Renovation business, the group expects momentum to remain strong as a result of continuing government subsidies and the high level of sales of existing properties. Order intake for the B2B Renovation business will be kept under control, to focus on improving margins.
- The Real Estate Development and Land Development businesses should perform well.
With its proven diversification strategy, recognized leadership in the home building and renovation industry, and solid financial structure, Hexaom will continue to gain market shares in 2022 and strengthen its position as a major player in the French housing market.
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