Company Announcement 9/2024
Trading Statement for 1 January -
In Q1 2024, HusCompagniet generated revenue of
Group CEO of HusCompagniet,
"As expected, we saw a moderate pickup in activity in the quarter and increased sales by 20% to 272 units from a low base of 226 units in Q1 2023. The progress was driven by the Detached segment where we see a pick-up in meeting activity with potential customers, while noting a longer lead time from the initial contact to contract signing. In the professional segment, we secured several smaller contracts totalling 88 units which contribute to the desired diversification of our Semi-detached project portfolio with varying project sizes", continues
Based on the Q1 2024 performance, HusCompagniet confirms the full-year outlook for 2024, with revenue of
Selected key highlights Q1 2024
DKKm | Q1 2024 | Q1 2023 | ChangeQ1/Q1 | Q4 2023 | ChangeQ1/Q4 | FY 2023 | FY 2022 | Change |
Houses sold (units) | 272 | 226 | 20% | 212 | 28% | 851 | 957 | -11% |
Houses delivered (units) | 167 | 344 | -51% | 232 | -28% | 1,054 | 2,003 | -47% |
Order backlog, gross | 1,728 | 1,770 | -2% | 1,513 | 9% | 1,513 | 2,057 | -26% |
Order backlog, net | 1,297 | 1,216 | 7% | 1,145 | 13% | 1,145 | 1,364 | -16% |
Revenue | 483 | 656 | -26% | 531 | -9% | 2,381 | 4,330 | -45% |
Gross profit | 121 | 149 | -19% | 129 | -6% | 517 | 837 | -38% |
EBITDA | 21 | 40 | -48% | 18 | 17% | 108 | 316 | -69% |
Special items | 0 | -2 | n/a | 1 | n/a | 0 | -32 | n/a |
EBIT | 9 | 29 | -69% | 6 | 50% | 62 | 268 | -77% |
Gross margin | 25.0% | 22.7% | 2.3 ppt. | 24.3% | 0.7% | 21.7% | 19.3% | 2.4 ppt. |
EBITDA margin | 4.4% | 6.1% | n/a | 3.4% | 1.2% | 4.5% | 8.0% | -3.5 ppt. |
EBIT margin | 1.8% | 4.4% | n/a | 1.0% | 0.8% | 2.6% | 6.2% | -3.6 ppt. |
Contract assets, net | 318 | 480 | -152 | 262 | 66 | 262 | 626 | -364 |
Inventories | 260 | 365 | -104 | 281 | -20 | 281 | 343 | -62 |
Available cash | 464 | 415 | 49 | 473 | -8 | 473 | 404 | 69 |
Net interest-bearing debt | 360 | 751 | -391 | 356 | 4 | 356 | 768 | -412 |
NIBD/LTM EBITDA | 4.0x | 2.9x | 1.1x | 3.3x | 0.7x | 3.3x | 2.4x | 0.9x |
FTEs end of period | 396 | 404 | -8 | 393 | 3 | 393 | 471 | -78 |
Highlights Q1 2024
- HusCompagniet generated revenue of
DKK 483 million in Q1 2024 reflecting lower work-in-progress due to decreasing sales levels in 2023 combined with fewer deliveries. - During Q1 2024, demand for newbuilds increased moderately resulting in 272 houses sold. The increase was driven by sales growth in the Detached segment compared to Q1 2023.
- Gross margin was 25.0% in Q1 2024 up from 22.7% in Q1 2023. The margin increased across all segments.
-
EBITDA was
DKK 21 million corresponding to an EBITDA margin of 4.4%. The overall level was impacted by lower revenue reflecting the lower sales during 2023. -
The order backlog (net) on
31 March 2024 amounted toDKK 1,297 million compared toDKK 1,145 million at year-end 2023. -
Net debt (NIBD) amounted to
DKK 360 million compared toDKK 751 million in Q1 2023 following the refinancing of the bank agreement in Q2 2023. NIBD level in Q1 2024 is unchanged from Q4 2023. The leverage ratio (NIBD/LTM EBITDA) was 4.0x end of Q1 2024 compared to 3.3x at year end 2023. -
Inventories were
DKK 260 million , down from 365 million in Q1 2023 following sales of land and show houses primarily during 2023. Inventories comprised; Raw materials ofDKK 20 million ; Show-houses ofDKK 121 million ; and Land ofDKK 120 million . In the Financial statements for 2023, note 3.1 "Inventories" at page 103, the total inventory amounts toDKK 281 million , of whichDKK 178 million is classified as "Land" andDKK 82 million is classified as "Show houses and semi-detached houses". The correct numbers should have beenDKK 139 million classified as Land andDKK 121 million classified as "Show houses and semi-detached houses". - FTEs decreased 2% compared to Q1 2023.
Q1 segmental development
Detached houses | Semi-detached houses | Group | ||||||
DKKm | Q1-2024 | Q1-2023 | Q1-2024 | Q1-2023 | Q1-2024 | Q1-2023 | Q1-2024 | Q1-2023 |
Houses sold (units) | 172 | 118 | 88 | 92 | 12 | 16 | 272 | 226 |
Houses delivered (units) | 112 | 200 | 38 | 72 | 17 | 72 | 167 | 344 |
Houses delivered on own land (%) | 4.5% | 8.0% | 18.4% | 23,6% | n/a | n/a | 8.0% | 12,1%* |
Order backlog, gross | 1,237 | 1,026 | 403 | 590 | 88 | 154 | 1,728 | 1,770 |
Order backlog, net | 944 | 701 | 267 | 367 | 86 | 147 | 1,297 | 1,216 |
Revenue | 356 | 447 | 101 | 116 | 26 | 93 | 483 | 656 |
Gross profit | 72 | 82 | 39 | 33 | 11 | 34 | 121 | 149 |
EBITDA | 3 | 17 | 19 | 15 | -1 | 8 | 21 | 40 |
Average selling price (ASP) | 2.8 | 2.9 | 1.7 | 1.4 | 1.6 | 1.3 | n/a | n/a |
Revenue growth (%) | -20.4% | -49.3% | -12.9% | -43.1% | -72.0% | 7.4% | -26.4% | -44.0% |
Gross margin | 20.1% | 18.4% | 38.4% | 28.1% | 40.5% | 36.8% | 25.0% | 22.7% |
EBITDA margin | 1.0% | 3.8% | 18.4% | 13.2% | n/a | 8.1% | 4.4% | 6.1% |
*Only includes houses delivered in
Detached houses
- After a period of very low sales activity, sales have increased in the beginning of 2024 resulting in a total sale of 172 houses compared to 118 houses in Q1 2023.
- Revenue was affected negatively by the lower sales levels during 2023 resulting in fewer deliveries as well as lower work-in-progress.
-
EBITDA was
DKK 3 million corresponding to an EBITDA margin of 1.0% The overall level was negatively impacted by a lower level of revenue. -
Average selling price (ASP) was
DKK 2.8 million , down fromDKK 2.9 million in Q1 2023 as expected due to a higher share of houses delivered on Zealand in Q1 2023.
Semi-detached houses
- Q1 2024 semi-detached house sales amounted to 88 compared to 92 sales in Q1 2023. Quarterly fluctuations are expected.
-
Revenue amounted to
DKK 101 million in Q1 2024 compared to 116 in Q1 2023. -
Gross margin increased across various projects leading to an increase in EBITDA to
DKK 19 million and a margin of 18.4% in Q1 2024, against 13.2% in Q1 2023. -
Order backlog (net) was
DKK 267 million at the end of Q1 2024 againstDKK 367 million in Q1 2023, reflecting the lower activity.
- Q1 2024 sales totalled 12 houses, down from 16 houses in Q1 2023.
-
Revenue totalled
DKK 26 million , down fromDKK 93 million in Q1 2023, due to fewer deliveries and a lower order book because of lower market activity inSweden . Deliveries amounted to 17 houses, down from 72 houses in Q1 2023. -
EBITDA was negative
DKK 1 million in Q1 2024 againstDKK 8 million in Q1 2023.
Outlook for 2024
We reiterate the full-year 2024 guidance issued on
- Revenue is expected to be
DKK 2,300-2,600 million - EBITDA is expected to be
DKK 80-130 million - Operating profit (EBIT) is expected to be
DKK 30-80 million
Assumptions for the 2024 outlook
- Current expectations for 2024 deliveries are between 800 and 1,000 houses.
- The 2024 guidance is based on no severe disruption of supply chains emerging, on raw material prices not significantly exceeding current levels and that the market will slowly pick-up during 2024.
- Dividend distribution to shareholders is suspended and expected to be reintroduced when leverage is back within the long-term target of around 2x net debt to EBITDA.
Webcast and conference call
HusCompagniet will host a conference call (in English) for investors and analysts today, Thursday
Conference call dial-in numbers for investors and analysts:
PIN: 649396
https://huscompagniet-events.eventcdn.net/events/q1-2024
For additional information, please contact:
Allan Auning-Hansen, Group CFO +45 30 10 25 00
Forward-looking statements
This announcement includes forward-looking statements on various matters, such as expected earnings and future strategies and expansion plans. Such statements are uncertain and involve various risks, as many factors, some of which are beyond our control, may result in actual developments differing considerably from the expectations set out. Such factors include, but are not limited to, general economic and business conditions, exchange rate and interest rate fluctuations, the demand for our services and competition in the market.
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