(AOF) – Hexaom revealed significantly improved 2023 results. The specialist in house construction and renovation posts a net profit of 32.6 million euros compared to a loss of 37.9 million euros in 2022. Current operating profit increased by 20.4% to 38 .4 million euros, representing a current operating margin of 3.7% compared to 3.3% in 2022. Revenue increased by 6.3% on a comparable basis to 1.024 billion euros. Cash flow net of debt reached 81 million euros compared to 42.2 million euros at the end of 2022.
The Board of Directors will propose to the annual general meeting to be held on June 5 not to pay a dividend for the 2023 financial year. Hexaom wishes to “preserve its fundamentals, its cash position but also to ensure a fair distribution of the efforts required of everyone in a context of unprecedented crisis.” Last year, the group also decided not to pay a dividend.
Taking into account the evolution of on-board shipment at the end of February, Hexaom anticipates a decrease in its 2024 production of around 25 to 30% compared to 2023. Measures to adjust the cost structure to market conditions already widely implemented are continuing and will have their full effect in the second half of 2024.
The group plans to maintain operational profitability, which would be between 3% and 4% of turnover for the year.
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Double penalty for the sector
The French Building Federation (FFB) recently warned of the collapse of the new housing market. Over the first eight months of 2022, sales in the new home market in the diffuse sector collapsed by 26.8% year-on-year. As for sales of new homes in the grouped sector, sales to individuals fell by 17.3% year-on-year in the first half, while sales to institutions fell by 23%. The trend is the same for collective housing sales, down 9.8%.
These bad trends are accompanied by a decline in public investments, while PGE reimbursements begin. Due to a lack of visibility, local authorities prefer to put certain projects on hold. They also have to face a drop in their resources and a significant increase in energy and works costs. However, the largest investments are generally made during the third and fourth years of mandate of communities, that is to say in 2023 and 2024. This therefore represents a significant shortfall for the sector.