Company Announcement 27/2023 Outlook for 2023 Reconfirmed
HusCompagniet generated a revenue of
"We are in a much better place compared to the same period last year, and we are pleased to see the financial results develop as expected and that we have managed to keep profitability at a satisfactory level. However, 2023 reflects a period impacted by lower revenue and sales levels below historical average." says CEO
The demand for new build increased in the first half of 2023 and has stagnated at lower levels in Q3 2023. This is mainly driven by increased uncertainty with our customers due to the macro-economic situation, e.g. inflation and interest levels. We, nevertheless, experience good and consistent interest from customers.
"Whereas we at the beginning of the first half of 2023 could see a general increase in activity, the sales results in Q3 indicate that the entire industry is looking towards a more flat development. Fortunately, we have adapted our business continuously and acted responsibly, which means that we remain financially solid in a challenged market.
The Swedish business was negatively impacted by a provision for a write-down of a commercial contract of
HusCompagniet confirms its outlook for 2023 with an EBITDA of
Selected key highlights Q3 2023
DKKm | Q3 2023 | Q3 2022 | Change | Q1-Q32023 | Q1-Q32022 | Change | FY 2022 |
Houses sold (units) | 194 | 138 | 41% | 639 | 870 | -27% | 957 |
Houses delivered (units) | 213 | 417 | -49% | 822 | 1,423 | -42% | 2,003 |
Order backlog, gross | 1,550 | 3,104 | -50% | 1,550 | 3,104 | -50% | 2,057 |
Order backlog, net | 1,098 | 2,041 | -46% | 1,098 | 2,041 | -46% | 1,300 |
Revenue | 571 | 1,083 | -47% | 1,851 | 3,350 | -45% | 4,330 |
Gross profit | 121 | 217 | -44% | 388 | 642 | -40% | 837 |
EBITDA bsi* | 33 | 105 | -69% | 91 | 280 | -68% | 348 |
Special items | 0 | 13 | n/a | 1 | 14 | -93% | 32 |
EBIT | 22 | 79 | -72% | 57 | 230 | -75% | 268 |
Gross margin bsi* | 21.2% | 20.0% | 1.2 ppt. | 21.0% | 19.2% | 1.8 ppt. | 19.3% |
EBITDA margin bsi* | 5.8% | 9.7% | -3.9 ppt. | 4.9% | 8.4% | -3.4 ppt. | 8.0% |
EBIT margin | 3.9% | 7.3% | -3.4 ppt. | 3.1% | 6.9% | -3.7 ppt. | 6.2% |
Contract assets, gross | 547 | 916 | -40% | 547 | 916 | -40% | 731 |
Inventories | 291 | 361 | -19% | 291 | 361 | -19% | 343 |
Available cash** | 395 | 152 | 161% | 395 | 152 | 161% | 404 |
Net interest-bearing debt | 435 | 1,021 | -57% | 435 | 1,021 | -57% | 768 |
NIBD/LTM EBITDA | 3.1x | 2.7x | 0.4x | 3.1x | 2.7x | 0.4x | 2.4x |
FTEs end of period | 378 | 521 | -143 | 378 | 521 | -143 | 471 |
*Before special items **With a RCF facility agreement of
Highlights Q1-Q3 2023
- Sales amounted to 639 houses in Q1-Q3 2023, down from 870 in Q1-Q3 2022. The development is mainly due to a decrease in the sales of detaches houses. During Q3 2023 we saw a higher demand for newbuilds compared to Q3 2022 resulting in 194 homes sold. However, the sales levels are still below historical average and continued to be affected by current market conditions with higher interest rates and economic uncertainty.
-
HusCompagniet generated revenue of
DKK 1,851 million in Q1-Q3 2023 compared toDKK 3,350 in Q1-Q3 2022. The decrease is due to a lower level of work in progress and sales activity compared to Q1-Q3 2022. - EBITDA margin before special items (bsi) was 4.9% in Q1-Q3 2023, down from 8.4% in Q1-Q3 2022.
-
Extraordinary provisions were made of
DKK 24 million in relation to 1) re-evaluation of provisions related to prior years ofDKK 15 million and 2) commercial contract inSweden ofDKK 9 million . - Gross margin was 21.0% in Q1-Q3 2023 up from 19.2% in Q1-Q3 2022. The increase was mainly due to the semi-detached segment where the acquisition of the factory has been contributing to the positive development in the margins.
-
Net debt (NIBD) amounted to
DKK 435 million a decrease fromDKK 1.021 million in Q3 2022. The leverage ratio (NIBD/LTM EBITDA) was 3.1x. - FTEs decreased 27% compared to Q3 2022 due to the collective layoffs conducted during last year.
-
There is an uncertainty in the market caused by Inflation and interest levels.
The new system for calculating tax on private ownership of a house might further increase the uncertainty. There is however still a consistent interest from customers.
Q3 segmental development
Detached houses | Semi-detached houses | Group | ||||||
DKKm | Q3 2023 | Q3 2022 | Q3 2023 | Q3 2022 | Q3 2023 | Q3 2022 | Q3 2023 | Q3 2022 |
Houses sold (units) | 132 | 111 | 45 | 11 | 17 | 16 | 194 | 138 |
Houses delivered (units) | 126 | 293 | 50 | 78 | 37 | 46 | 213 | 417 |
Houses delivered on own land (%)* | 10.3% | 10.9% | 34.0% | 1.3% | n/a | n/a | 17.0% | 8.9% |
Order backlog, gross | 1,071 | 2,117 | 378 | 707 | 101 | 280 | 1,550 | 3,104 |
Order backlog, net | 723 | 1,304 | 278 | 471 | 96 | 265 | 1,098 | 2,041 |
Revenue | 425 | 890 | 98 | 117 | 48 | 77 | 571 | 1,083 |
Gross profit | 88 | 172 | 22 | 18 | 11 | 27 | 121 | 217 |
EBITDA bsi | 30 | 94 | 6 | 4 | -3 | 8 | 33 | 105 |
Special items | 0 | -12 | 0 | -1 | 0 | 0 | 0 | -13 |
Average selling price (ASP) | 2.9 | 2.6 | 2.6 | 1.1 | 1.3 | 1.7 | n/a | n/a |
Revenue growth (%) | -52.2% | 1.1% | -16.8% | -3.9% | -37.7% | 8.5% | -47.3% | 0.8% |
Gross margin | 20.7% | 19.4% | 22.4% | 15.2% | 23.4% | 34.7% | 21.2% | 20.0% |
EBITDA margin bsi | 7.1% | 10.6% | 6.2% | 3.0% | -6.1% | 10.0% | 5.8% | 9.7% |
EBITDA margin | 7.2% | 9.2% | 6.2% | 1.6% | -6.1% | 10.0% | 5.9% | 8.4% |
*Only includes houses delivered in
Q1-Q3 segmental development
Detached houses | Semi-detached houses | Group | ||||||
DKKm | Q1-Q3 2023 | Q1-Q3 2022 | Q1-Q3 2023 | Q1-Q3 2022 | Q1-Q3 2023 | Q1-Q3 2022 | Q1-Q3 2023 | Q1-Q3 2022 |
Houses sold (units) | 419 | 668 | 146 | 137 | 74 | 65 | 639 | 870 |
Houses delivered (units) | 468 | 998 | 195 | 243 | 159 | 182 | 822 | 1,423 |
Houses delivered on own land (%)* | 9.0% | 9.0% | 26,2% | 32.9% | n/a | n/a | 14,0% | 13.7% |
Order backlog, gross | 1,071 | 2,117 | 378 | 707 | 101 | 280 | 1,550 | 3,104 |
Order backlog, net | 723 | 1,304 | 278 | 471 | 96 | 265 | 1,098 | 2,041 |
Revenue | 1,283 | 2,659 | 344 | 436 | 223 | 255 | 1,851 | 3,350 |
Gross profit | 232 | 504 | 86 | 44 | 71 | 93 | 388 | 642 |
EBITDA bsi | 42 | 233 | 35 | 16 | 14 | 31 | 91 | 280 |
Special items | 1 | -12 | 0 | -2 | -2 | 0 | -1 | -14 |
Average selling price (ASP) | 2.9 | 2.5 | 2.0 | 1.5 | 1.4 | 1.4 | n/a | n/a |
Revenue growth (%) | -51.7% | 5.0% | -21.0% | 20.7% | -12.5% | 15.4% | -44.7% | 7.6% |
Gross margin | 18.1% | 19.0% | 24.9% | 10,2% | 31.6% | 36.5% | 21.0% | 19.2% |
EBITDA margin bsi | 3.3% | 8.8% | 10.3% | 3.8% | 6.2% | 12.2% | 4.9% | 8.4% |
EBITDA margin | 3.3% | 8.3% | 10.3% | 3.4% | 5.4% | 12.2% | 4.9% | 7.9% |
*Only includes houses delivered in
Highlights Q3 - segments
Detached houses
- Q3 sales totalled 132 houses, up 21 or 18.9% from 111 houses in Q3 2022. Despite the increase the sales levels are still affected by the current market situation with uncertainty and higher interest rates.
-
Revenue was
DKK 425 million down fromDKK 890 million in Q3 2022 while deliveries were 126 down from 293. -
The average selling price (ASP) was
DKK 2.9 million up fromDKK 2.6 million in Q3 2022. The increase was due to higher sales prices and higher proportion of houses delivered in Zealand region. The average selling price is expected to normalize. - Gross margin in Q3 2023 was 20.7%, up 1.3 ppt. from Q3 2022, mainly due to the lower material prices.
-
EBITDA bsi was
DKK 30 million down fromDKK 94 million in Q3 2022, a decrease of 68%, corresponding to an EBITDA margin bsi of 7.2%. The decrease is mainly due to the low activity. -
Order backlog (net) was
DKK 723 million at the end of Q3 againstDKK 1,304 million end of Q3 2022.
Semi-detached houses
- Q3 2023 sales amounted to 45 units, up 34 units from Q3 2022, impacted by a periodic fluctuation in the B2B sales, which is not unusual.
-
Revenue decreased to
DKK 98 million in Q3 fromDKK 117 million in Q3 2022. HC Production contributed withDKK 17 million . -
Order backlog (net) was
DKK 278 million at the end of Q3 againstDKK 471 million end of Q3 2022, reflecting the lower activity.
- Sales totalled 17 houses, up 1 house from Q3 2022. The sales rate continues to be impacted by unprecedented low market activity in
Sweden . -
Revenue totalled
DKK 48 million , down 37.7% fromDKK 77 million in Q3 2022. Deliveries amounted to 37 homes, down from 46 homes in Q3 2022. -
EBITDA margin bsi was negative 6.1% against 9.9% in Q3 2022. The margin was impacted by provision for write-down on a commercial contract of
DKK 9 million
Outlook for 2023
We reiterate the last full-year 2023 guidance from
** Revenue is expected to be
** EBITDA before special items is expected to be
** Operating profit (EBIT) is expected to be
Assumptions for the 2023 outlook
- The 2023 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 2023.
- Current expectations for 2023 deliveries are between 950 and 1,100 houses.
-
Revenue from the semi-detached segment is assumed to be between
DKK 350-450 million . - Dividends are suspended in 2023 leading to no distribution to shareholders in 2023. HusCompagniet expects to resume dividend payments once the leverage is back at appropriate levels.
Webcast and conference call
HusCompagniet will host a conference call (in Danish) for investors and analysts today, Friday
Conference call dial-in numbers for investors and analysts:
PIN: 649396
https://huscompagniet-events.eventcdn.net/events/HusCompagniet-trading-statement-q3-2023
For additional information, please contact:
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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