COLAS (EPA:RE) - PR Colas - 2021 Half-Year Results
Transparency directive : regulatory news
26/08/2021 07:30
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Communique de presse
Paris, August 26, 2021
Certified with
2021 Half-Year Results
* Order backlog at historic high of EUR10.3 Bn, up +4% at constant exchange
rates over one year
* Half-year revenue of EUR5.6 Bn, up 16% like-for-like vs H1 2020
* Strong growth in current operating profit, up EUR204 M vs H1 2020 and EUR36 M
vs H1 2019
* Net profit attributable to the Group: - EUR112 M (+ EUR183 M vs H1 2020)
* Free Cash flow improved by EUR215 M vs H1 2020 and by EUR104 M vs H1 2019
* Good control of Net debt at - EUR631 M (+ EUR434 M compared to end of June
2020)
* Outlook for 2021 revised upwards Reminder: due to highly seasonal nature of
the majority of the Group's businesses, operating losses are recorded every
first half-year.
The Board of Directors of Colas, chaired by Frédéric Gardès, met on August
24, 2021 to approve the financial statements at June 30, 2021 and outlook for
the current year.
Consolidated key figures
in millions of euros
H1 2019 H1 2020 H1 2021 Change At constant
vs 2020 scope and
exchange rates
Revenue 5,834 4,870 5,591 +15% +16%
of which France 3,071 2,236 2,836 +27% +27%
of which International 2,763 2,634 2,755 +5% +7%
Current operating profit (136) (304) (100) +204
Current operating profit
margin -2.3% -6.2% -1.8% +4.4 pts
Operating profit (136) (349)(a) (100) +249
Net profit attributable
to the Group (102) (295) (112) +183
Free cash flow (b) (158) (269) (54) +215
Net surplus cash/
(Net debt)(b) (1,544) (1,065) (631) +434
(a) Including EUR45 million in non-current expenses related to the
reorganization of the Group's road business in France and the continued
dismantling of the Dunkirk site.
(b) See definition in glossary on page 5.
Order backlog
The order backlog at the end of June 2021 stood at a historic high of EUR10.3
billion, up 4% at constant exchange rates over one year.
In Mainland France, the order backlog (EUR3.4 billion) is down 6% over one
year, in particular in the Railways segment, whereas order backlog for the
Roads segment remains stable.
For the International and French Overseas units, order backlog amounts to
EUR6.9 billion, up 7% over one year (+10% at constant exchange rates). During
the second quarter, Colas won major noteworthy road contracts in Canada. Colas
Rail's international order backlog is stable, awaiting significant contracts in
the second half of 2021.
International and Overseas France represent 67% of Colas' total order
backlog.
Revenue
Consolidated revenue for the first half of 2021 amounted to EUR5.6 billion, up
15% compared to the first half of 2020 (+16% at constant scope and exchange
rates), boosted by very good business in the 2nd quarter, which recovered the
same level recorded in Q2 2019.
H1 revenue amounted to EUR2.8 billion in France (+27% over one year) and EUR2.8
billion outside of France (+5% and +7% at constant scope and exchange rates).
As a reminder, the impact of the health crisis on revenue for H1 2020 was
estimated at around EUR810 million.
Roads:
Revenue for the first half of 2021 totaled EUR4.9 billion, up 15% at constant
scope and exchange rates.
* Business in the France - Indian Ocean zone has improved significantly (+26%
compared to H1 2020), reflecting good performance for all activities in the
area. It benefits from a favorable baseline effect compared to 2020 which was
impacted by Covid-19 lockdowns (construction sites were closed from mid-March
and activity was able to start back up gradually in April and May).
* Business in the EMEA zone (Europe, Middle East, Africa) and the United States
improved slightly over one year (+2% and +1% respectively at constant scope and
exchange rates), boosted by good Q2 recovery, after activity in Q1 was impacted
by unfavorable weather in both geographies.
* In Canada, business is up 19% at constant scope and exchange rates, as
activity has benefitted from favorable weather since the start of the
half-year.
* Lastly, in the Asia-Pacific zone, revenue is up a slight 1% at constant scope
and exchange rates.
Railways and Other Activities:
Revenue for Railways and Other Activities was up a sharp 21% at constant scope
and exchange rates compared to the first half of 2020, mainly boosted by good
momentum at Colas Rail in the United Kingdom. Colas Rail's business in France
is also up compared to the first half of 2020, recovering the level recorded in
the first half of 2019.
Financial performance
Current operating profit for the first half of 2021 was -EUR100 million, a
sharp increase of EUR204 million compared to the first half of 2020. Current
operating profit also exceeded the figures recorded for the first half of 2019
(-EUR136 million), thanks to an early start for activity in Canada, the first
impact of industrial optimization plans and the new organization of Colas
France.
As a reminder, the impact of the health crisis on current operating profit for
the first half of 2020 was estimated at around -EUR190 million euros (loss of
current operating profit and inevitable costs).
The share of net income from joint ventures and associates amounted to EUR4
million, stable compared to the first half of 2020. Tipco Asphalt's
contribution was up EUR2 million at EUR10 million, compared to the end of June
2020.
Net profit attributable to the Group totaled -EUR112 million, compared to
-EUR295 million at the end of June 2020, and -EUR102 million at the end of June
2019.
Net debt
Net debt at June 30, 2021 stood at EUR631 million, compared to net debt of
EUR1,065 million at the end of June 2020. The improvement is the result of
better results and good management of working capital requirements and
investments.
CSR commitments
As part of its policy to reduce the Group's carbon footprint, Colas has
launched a program to convert its passenger vehicle fleet to all-electric. To
do so, Colas has started installing EV charging stations in all of its 300
branches in mainland France. The goal is for combustion engine vehicles to be
the exception within 3 years. This approach will be extended outside of France
in the coming months.
Outlook
The outlook below is understood to exclude any further deterioration in the
Covid-19 health crisis.
The recovery recorded in the second quarter means that forecasts for 2021 show
significantly higher revenue than in 2020, but without actually reaching the
same level as in 2019.
The current operating profit margin for 2021 is expected to rise compared to
2019 (3.2% of consolidated revenue), and a target of 4% has been set for 2023.
The financial statements are available at www.colas.com.
The half-year financial report is available at www.colas.com.
The financial statements were subject to a limited review by the Statutory
Auditors, who have published a report thereof.
Colas (www.colas.com)
Colas, a subsidiary of the Bouygues Group, has one mission: to imagine, build
and maintain sustainable transport infrastructure. Backed by a network of 800
construction business units and 3,000 material production units in more than 50
countries on five continents, the Group's 55,000 employees act locally to
connect communities and foster exchanges for today and tomorrow. Colas'
ambition is to be the world leader in innovative, sustainable mobility
solutions.
In 2020, consolidated revenue at Colas totaled EUR12.3 billion (55% outside of
France).
FOR FURTHER INFORMATION :
Fabienne BOULOC Tél. : 06 67 06 90 21
fabienne.bouloc@colas.com
Agathe DUCELLIER Tél. : 07 62 12 58 69
agathe.ducellier@colas.com
Marine ALLEMANDOU Tél. : 01 47 61 74 52
Mélodie LAMIAUX Tél. : 01 47 61 75 61
contact-investors@colas.fr
Condensed consolidated income statement for Q2 2021
in millions of euros
Q2 2019 Q2 2020 Q2 2021 Change vs 2020 At constant
scope and
exchange rates
Revenue 3,547 2,911 3,571 +23% +23%
Current operating profit 162 66 177 +111
Operating profit 162 21 177 +157
Net profit attributable
to the Group 125 5 115 +110
Revenue at June 30, 2021 by business segment
in millions of euros
H1 2019 H1 2020 H1 2021 Change vs 2020 At constant
scope and
exchange rates
Roads France ?
Indian Ocean 2,766 2,101 2,650 +26% +26%
Roads EMEA 921 916 933 +2% +2%
Roads United States 675 674 623 -8% +1%
Roads Canada 494 456 540 +18% +19%
Roads Asia - Pacific 202 184 198 +8% +1%
Total Roads 5,058 4,331 4,944 +14% +15%
Railways and Other
Activities 762(a) 534 642 +20% +21%
Parent company 14 5 5 ns ns
TOTAL 5, 834(a)4, 870 5, 591 +15% +16%
(a) As a reminder, Smac, which was deconsolidated in the 2nd quarter of 2019,
contributed to the amount of EUR141 million in the 1st quarter of 2019.
Glossary
Order backlog: the amount of work still to be done on projects for which a firm
order has been taken, i.e. the contract has been signed and has taken effect
(after notice to proceed has been issued and suspensory clauses have been
lifted).
Changes in revenue at constant scope and exchange rates:
- at constant exchange rates: change after translating foreign-currency sales
for the current period at the exchange rates for the comparative period;
- at constant scope: change in revenue for the periods compared, adjusted as
follows:
* for acquisitions, by deducting from the current period those sales of the
acquired entity that have no equivalent during the comparative period;
* for divestments, by deducting from the comparative period those sales of
the divested entity that have no equivalent during the current period.
Free Cash Flow: Net cash flow (determined after (i) cost of net debt, (ii)
interest expense on lease obligations and (iii) income taxes paid), minus net
capital expenditure and repayments of lease obligations. It is calculated
before changes in WCR (working capital requirement).
Net surplus cash/(Net debt): the aggregate of cash and cash equivalents,
overdrafts and short-term bank borrowings, non-current and current debt, and
financial instruments. Net surplus cash/(Net debt) does not include non-current
and current lease obligations. A positive figure represents net surplus cash
and a negative figure represents net debt.