In This Article:
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Retail Sales Growth: Increased by 14% in the second half of 2024.
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Financial Debt: Reduced to EUR474 million, a 44% drop from previous levels.
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Liquidity: EUR1 billion at the end of 2024.
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Operating Profit: Positive at EUR2 million, impacted by transformation costs.
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Revenue: EUR3.5 billion, down 12% excluding divested activities.
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Net Financial Debt: EUR474 million, significantly reduced by EUR369 million.
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Free Cash Flow: Positive at EUR79 million.
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Recurring Operating Profit: EUR120 million loss for 2024 under new Nexity and IFRS.
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WCR Reduction: Down EUR301 million to EUR1.039 billion.
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Backlog: EUR16.6 billion, equivalent to 5.6 years of business.
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Net Capital Gain from Divestments: EUR435 million.
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Gross Financial Debt: EUR1.147 billion, down by 31%.
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Carbon Reduction Target: 42% drop by 2030, ahead of regulatory requirements.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nexity SA (FRA:NQ9) successfully executed its transformation plan, reducing financial debt by 44% to EUR474 million, ahead of its target.
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Retail sales showed strong performance with a 14% growth in the second half of 2024, driven by first-time buyers and effective marketing campaigns.
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The company secured its medium-term banking funding until February 2028, ensuring liquidity and financial stability.
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Nexity SA's liquidity stands at EUR1 billion, providing confidence for future operations and investments.
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The company has a robust pipeline with a developable volume of 61,000 homes, positioning it as a leader in the sector.
Negative Points
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Total reservations were down 8% in 2024, reflecting challenges in the market despite a recovery in retail sales.
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Operating profit was only EUR2 million, heavily impacted by transformation costs of EUR218 million.
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Recurring operating profit showed a loss of EUR120 million, indicating ongoing financial challenges.
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The office space segment is experiencing a low point in the cycle, with a backlog reflecting reduced market activity.
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The company faces potential delays in planning permissions due to upcoming local elections in France, which could impact future projects.
Q & A Highlights
Q: Can you provide an update on the commercial offering and potential price drops? A: Jean-Claude Bassien, Deputy CEO, explained that the price drops were initially estimated between 6% and 8%, but the actual impact was less severe due to a drop in interest rates, which improved purchasing power. The company has adjusted prices dynamically based on market conditions and does not foresee further significant price cuts.