Nexity (NXI) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €1.68bn, down 18% year-over-year, reflecting a challenging property market and transformation costs.

• Operating profit remained positive at €55m, though down 33% from H1 2023, supported by capital gains from the €400m PMI sale.

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

• Net debt reduced by €264m to €579m, mainly through asset disposals and working capital management.

• Transformation plan is progressing, focusing on deleveraging, cost reduction, and a shift toward urban regeneration.

Financial highlights

• Revenue declined 18% year-over-year to €1.68bn (14% like-for-like); operating margin decreased to 3.3% from 4.0%.

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

• Net debt at €579m, down €264m (31%) from December 2023; liquidity at €1.0bn, including €750m undrawn credit facility.

• Working capital requirement at €1,326m, down €21m from December 2023.

• Average cost of borrowing improved to 3.1% from 3.9% in 2023.

Outlook and guidance

• 2024 guidance unchanged: positive operating profit expected at a financial low point due to transformation costs.

• Net financial debt targeted below €500m by end-2025, with improved profitability expected from 2025.

• Profitability rebound in 2025 contingent on transformation execution and market conditions.