(Boursier.com) — Retail sales made by Nexity emerged with a slight recovery (+1%) in Q1, after two years of continuous decline in a market still in sharp decline (-31%).
Block sales over the quarter show 567 lots, not representative of non-linear activity over the year.
Group turnover of €770 million is in line with expectations (-14%). The Backlog is relatively stable at 5.1 billion euros, or two years of activity.
The committed trajectory of debt reduction and strengthening of liquidity is in line with previous announcements.
*Finalization on April 2 of the sale of ADB’s activities to Bridgepoint: sale proceeds of €400 million strengthening the Group’s solid liquidity.
*Profound transformation of the Group towards an urban operator model: “Reorganization of the Group, serving urban regeneration, the needs of our customers and operational performance, including the implementation of support measures concerning 500 positions in as part of a Job Protection Plan and a plan to reduce operating costs aiming to reduce the cost base by €95 million, a reduction of -16%.”
Support from stakeholders in the implementation of the transformation plan
With solid partnerships enabling it to accelerate the use of land ownership through deconsolidating arrangements (Carrefour, Mirabaud), Nexity also benefits from the support of its banking and bondholder partners: the Group has in fact obtained from its EuroPP bondholders and all of its banking partners an exemption in respect of financial ratios, until the end of the 2024 financial year.
UNCHANGED OUTLOOK FOR 2024
The good execution of the roadmap, including the finalization of the sale of ADB activities, and the concrete commitment to adjustment and transformation measures of the organization, allow the Group to maintain unchanged prospects for the year 2024, with:
A positive operating result marking a financial low point, taking into account capital gains from disposals, the costs of adjusting the offer to the new market situation and the costs linked to the reorganization of the Group allowing a rebound in 2025.
Net financial debt significantly lower than at the end of 2023.
Comment from Véronique Bédague, President – CEO of the group: “In a market still in decline, particularly given the low implicit return for investors, Nexity’s retail commercial activity is showing an initial inflection point. After having demonstrated agility in the refocusing of its activities in 2023, Nexity is accelerating the implementation of its proactive decisions in 2024 to adapt its offering, while activating all levers for debt reduction and reduction of its cost base, and thus providing itself with the means to transform itself into an urban operator model The finalization of the sale of ADB activities to Bridgepoint at the beginning of April, and the savings plan, notably integrating the implementation of a PES, make it possible to confirm. the progress of our roadmap and to keep the outlook for the current financial year unchanged.
The year 2024, which promises to be a financial low point, will be for Nexity the year of transformation towards a more agile company, in a position to bounce back from 2025 thanks to the opportunities driven by the new needs of territories and customers. Nexity will thus return to a growth trajectory, allowing a return to shareholders when the time comes, which I will have the pleasure of meeting again at our General Meeting on May 23.”