2023 Q1 REVENUE:
UP 6.9% TO €278.6 MILLION,
ON TRACK TO REACH ANNUAL GROUP OBJECTIVES

First-quarter production on track to reach 2023 objectives

For the first quarter of this year, the Hexaom Group posted revenue of €278.6 million, up +6.9% (like-for-like) compared to the same period last year.

Revenue for the first three months of the year breaks down as follows per business segment:

The Home Building business remained buoyant thanks to a high order intake. Revenue from this business was up 9.8% to €223.9 million, in line with the group’s forecasts for the first quarter.

The Real Estate Development business posted revenue of €11.4 million compared to €12.7 million in the first quarter of 2022. This business is still impacted by longer administrative delays, which in turn is pushing back the building of these new programs.

The Land Development business was very active during the first quarter with revenue of €7.2 million, up 12.5% compared to last year.

Revenue from the B2C Renovation business amounted to €13.0 million, up 1.6%. This production includes:

• Revenue from the “general contractor” business, recognized as renovation contracts progress (average selling price of around €100k excluding tax), which is down slightly          (-1.8%).
• Revenue from the intermediated business, consisting of commissions collected via the franchisee network, which is up sharply (+26.3%) as this sales network continues to expand.

Finally, as expected, the B2B Renovation business was down 6.5% to €23.0 million.

Order intake for the first quarter of 2023

In terms of sales momentum, the market environment was complex during the quarter, disrupted as it was by inflation, tighter financing conditions, and rising interest rates.

Home Building Business

Though the group is impacted by worsening market conditions, it is continuing its rigorous policy aimed at restoring margins. The average selling price for the first three months of the year was €166.1k excluding tax compared to €154.5k excluding tax at the end of December 2022.

Hyperinflation in construction costs seems to be slowing down or even stabilizing for certain materials. Nonetheless, the group remains vigilant and is constantly adjusting its selling prices to accommodate for rising construction costs.

In this disrupted environment, the order intake, at March 31st, 2023, represented revenue of €174.5 million, down 24.7% in value (-32.8% in number, with the market).

Land and Real Estate Development Business

The Real Estate Development business backlog, at March 31 st, 2023, was €87.8 million and the total potential inventory to be delivered represented revenue of €297.5 million, i.e. 1,365 housing units. Even as the market continues to contract, the group’s resilience is bolstered by its positioning in the high-quality home ownership and subsidized housing markets as well as its presence in Ile-de-France, Aquitaine, and Western France.

For the Land Development business, the order book (unreserved inventory) stood at €21.9 million, representing 298 lots. This level of activity reflects wider trends in the construction market.

B2C Renovation Business

B2C renovation is being driven by strong momentum from franchises. The “General contractor” business amounted to €10.6 million for the quarter compared to €12.6 million for the same period last year. Order intake from the intermediated business was up sharply to €25.9 million compared to €19.4 million. The franchise network continues to expand in line with the group’s targets.

B2B Renovation Business

Sales for B2B renovations are still being monitored and amounted to €17.8 million for the period. Actions to restructure and restore margins continue in accordance with the announced action plan.

Outlook for 2023

The group benefiting from high order intake in the previous year in the Home Building business forecasts 2023 production to grow despite the decline in order intake that began in 2022.

It will continue to develop its other areas of diversification (B2C Renovation, Land Development, and Real Estate Development). B2C Renovation stands to gain from measures put in place to grow this business and from overall market trends.

Given the expected outlook in each of the business segments and the rigorous actions put in place to turn around the B2B Renovation business, the group remains confident in its ability to improve its current operating margin in 2023.

Thanks to its sound financial structure, the Hexaom Group will continue to gain market shares in all its businesses and consolidate its position as a major player in the French housing industry.