Interim financial report for the period 1 January – 30 June 2021
Company Announcement 13/2021
Market demand remains high, supporting increased sales rates and deliveries in the period and driving a very strong H1 2021 performance.
With revenue of DKK 2,041 million and EBITDA of DKK 175 million for the first half of 2021, HusCompagniet generated solid growth in revenue and earnings. Margin improvements were underpinned by successful mitigation of cost inflation, especially for raw materials.
“HusCompagniets unique business model and market position proves its value in the current market. Market demand is high, as are cost pressures. We have a well-balanced approach for navigating through this and can continue to deliver strong results,” says CEO Martin Ravn-Nielsen and he continues:
“Our order book has grown by 51% in the period, and despite cost pressures and prolonged processing time for building permits, we have only extended the delivery process by a couple of months, which is relatively short compared to the rest of the market.
Growth in the Swedish segment in the second quarter is a primary reason for the longer duration of the order book. A ramp-up of the organisation has been initiated to support the increased building activity and will primarily contribute in 2022.”
| DKKm | Q2 2021 | Q2 2020 | Change | H1 2021 | H1 2020 | Change |
| Houses sold (units) | 721 | 465 | 55% | 1,347 | 852 | 58% |
| Houses delivered (units) | 424 | 384 | 10% | 818 | 736 | 11% |
| Order backlog | 3,775 | 2,505 | 51% | 3,775 | 2,505 | 51% |
| Revenue | 1.084 | 841 | 29% | 2,041 | 1,692 | 21% |
| Gross profit | 229 | 167 | 37% | 419 | 327 | 28% |
| EBITDA (bsi)* | 101 | 70 | 44% | 175 | 124 | 41% |
| EBITA (bsi)* | 94 | 63 | 49% | 161 | 108 | 49% |
| Special items | 0 | -15 | - | 0 | -15 | - |
| EBIT | 90 | 43 | 109% | 152 | 82 | 85% |
| Gross margin (bsi)* | 21.2% | 19.8% | 1.4 ppt. | 20.6% | 19.3% | 1.3 ppt. |
| EBITA margin (bsi)* | 8.7% | 7.5% | 1.2 ppt. | 7.9% | 6.4% | 1.5 ppt. |
| EBIT margin | 8.3% | 5.1% | 3.2 ppt. | 7.4% | 4.8% | 2.6 ppt. |
| Contract assets, gross | 807 | 660 | 22% | 807 | 660 | 22% |
| Available cash** | 475 | 362 | 31% | 475 | 362 | 31% |
| Net interest-bearing debt | 702 | 945 | -26% | 702 | 945 | -26% |
| NIBD/LTM EBITDA (bsi)* | 1.8x | - | - | 1.8x | - | - |
*Before special items
**Available cash includes an RCF facility. Q2 2020 includes a DKK 450m RCF facility. The RCF facility agreement was changed in October 2020 to DKK 400m
Highlights
- H1 2021 revenue increased by 21% year-over-year to DKK 2,041 million, supported by an increase in deliveries totalling 818 houses, up by 82 from 736 houses in H1 2020. Q2 2021 revenue totalled DKK 1,084 million, up 29% from Q2 2020
- Sales grew 58% with high activity in the market. The strong sales rate supports continued growth and increases capacity utilisation in production
- EBITA before special items (bsi) increased 49% to DKK 161 million, up from DKK 108 million in H1 2020. EBITA margin was 7.9% compared to 6.4% in H1 2020. Q2 2021 EBITA margin came out at 8.7%
The improvement was driven by the higher focus on margin improvements partly offset by higher sales commissions due to higher sales rates. A smaller ramp-up of the organisation was initiated in Q2 2021 to meet the increased building activity
- Net debt was DKK 702 million, while the leverage ratio (NIBD/LTM EBITDA) was 1.8x compared to 2.0x at year-end 2020. At 30 June 2021, available cash was DKK 475 million, including a revolver of DKK 400 million
- Due to its strong liquidity, HusCompagniet will consider further options to share Group capital surplus with shareholders through dividends and/or share buyback
Outlook for 2021
We reiterate the full-year 2021 guidance issued in May 2021.
• Revenue is expected to be DKK 4,100 – 4,250 million
• EBITA before special items is expected to be DKK 360 – 370 million
• Operating profit (EBIT) is expected to be DKK 335 – 345 million
HusCompagniet expects a leverage ratio below 2.0x net debt to last twelve months EBITDA before special items at the end of 2021, with the level moving towards 1.5x.
The Danish and Swedish housing markets remain attractive, underpinned by low interest rates. Yet, the current market situation is characterised by high cost inflation on certain raw materials and distressed supply chains are increasing market uncertainty for an overall positive market outlook.
Furthermore, prolonged processing times on building permits have extended the delivery process by a couple of months.
Webcast and conference call
HusCompagniet will host a conference call (in English) for investors and analysts at 10:00 (CEST) today, Wednesday 18 August 2021. The conference call and presentation will be available from HusCompagniet’s investor website.
Conference call dial-in numbers for investors and analysts:
UK: +44 3333009262
DK: +45 78150109
US: +18 332498407
DE: +49 69222220380
https://streams.eventcdn.net/huscompagniet/h1-2021
For additional information, please contact:
Mads Dehlsen Winther, Group CFO
Cristina Rønde Hefting, Head of IR & Press +45 51 96 23 14
HFR