Sales remain resilient
For the home building business, after an 8.50% increase in value in order intake at the end of February (+6.70% like-for-like), the closure of the group's sales offices led to a drop in sales in March, a drop that is nevertheless limited (63% of the target achieved) thanks to the digital tools put in place within the group.
Hexaom achieved 1,503 sales in the first quarter, representing revenue of €188.8 million. Overall, sales in the first quarter contracted by 9.4% in value (13.1% in volume) at current scope and by 10.9% in value (14.9% in volume) on a like-for-like basis. In April, the group should reach 50% of its order intake target.
Sales for the renovation business are up 56.5% to €32.0 million, driven by sustained growth in the B2B segment.
Heavily penalized at the beginning of lockdown, contacts and leads gradually recovered during the month of April to reach 80% of their usual level.
The group is actively preparing its return to more normal operations and has drawn up a lockdown exit plan that will be implemented as of May 11th. This plan provides for a series of measures which will enable sales offices and building sites to reopen under good health and safety conditions, while recommending that staff that can work from home continue to do so. Organizational procedures have been adapted and the layout of the offices have been reviewed to enable teams to operate and welcome clients.
Hexaom is approaching this new period with confidence and determination, while remaining cautious on points that could slow down the resumption of activity, in particular the delays the group experienced during the administrative period of building projects (period between the signing of the contract and the start of construction). Indeed, during lockdown, a majority of clients were unable to sign the purchase of their land (digital signatures were unavailable in many notary offices) and the processing of planning permission by local authorities was severely slowed down if not at a halt.
The group's challenges will be to make up for lost time in administrative delays which could impact the start of future building sites and to partly catch up the production delays of April and May during the summer period.
In this difficult period, the family-owned group can rely on its solid fundamentals: a resilient business model supported by experienced managers, motivated employees, a network of committed tradesmen, and a sound financial structure. Thanks to its position as a market leader and its careful and cautious management of the crisis, the Hexaom Group is well placed to emerge from this crisis stronger than before.
Next Press Release: 2020 Q2 Revenue, August 6th, 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 46 brands and subsidiaries with complementary expertise. A unique story of family and 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 10,000 customers a year, has built more than 100,000, has carried out over 75,000 renovations, employs more than 2,100 people, and recorded revenue of €841.8 million in 2019.
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