Nexity (NXI) H1 2024 earnings summary

Executive summary

• H1 2024 was marked by a challenging property market, with revenue down to €1.68bn and significant declines in new housing and commercial property investments, but the company maintained a strong operational pace and advanced its transformation plan focused on deleveraging, cost reduction, and urban regeneration.

• Leadership position was reaffirmed, supported by strategic partnerships and solid fundamentals.

• Net profit attributable to equity holders rose to €45m, up from €9m in H1 2023, driven by a €183m capital gain from the PMI sale.

• The company adapted its offer to market conditions, implementing targeted price cuts and focusing on selling inventory to avoid unsold stock.

• Financial and operational performance aligned with expectations, with positive operating profit and significant debt reduction.

Financial highlights

• Revenue for H1 2024 was €1.68bn, down 14–18% year-over-year, mainly due to lower property development activity.

• Operating profit was €55m, despite €128m in transformation costs, offset by a €183m capital gain from the PMI business sale.

• Net debt decreased by €264m (31%) to €579m, with liquidity remaining strong at €1bn, including €750m in undrawn credit lines.

• Working capital requirement fell by €21–23m, with a 14% reduction in the land bank.

• Group share of net profit increased to €45m, mainly due to the PMI sale.

Outlook and guidance

• 2024 guidance remains unchanged, with expectations for positive operating profit, continued deleveraging, and improved profitability in 2025.

• Net financial debt is projected to be significantly lower at year-end 2024 compared to 2023, targeting a maximum of €500m by end-2025.

• Guidance is contingent on no deterioration in the macroeconomic environment.