COLAS (EPA:RE) - PR Colas - Revenue and Results at the end of September 2018
Transparency directive : regulatory news
15/11/2018 07:30
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PRESS RELEASE
Paris, November 15, 2018
REVENUE AND RESULTS at the end of September 2018
* Work-on-hand: EUR8.7 billion, up 15% at constant exchange rates (+5%
excluding Miller McAsphalt)
* Revenue: EUR9.6 billion, up 11% (+5% at constant scope and exchange rates)
* Current operating income: EUR155 million (vs EUR179 million at September 30,
2017)
* Net profit attributable to the Group: EUR110 million (vs EUR160 million at
September 30, 2017)
The Board of Directors of Colas, chaired by Mr. Hervé Le Bouc, met on November
12, 2018 to examine the situation as of September 30, 2018 and outlook for the
current year.
Consolidated key figures
in millions of euros At 30/09/2017 At 30/09/2018 Change
Consolidated revenue 8,617 9,602 +11%
of which France 4,470 4,691 +5%
of which International 4,147 4,911 +18%
Current operating income 179 155 -24
Operating income 174(a) 155 -19
Net profit attributable
to the Group 160 110 -50
Net financial
surplus/(debt) (270) (1,293) -1,023
(a) of which EUR5 million in non-current expenses pertaining to preliminary
work for the dismantling of the Dunkirk site
Revenue at September 30, 2018 is up 11%
At September 30, 2018, the Colas Group recorded 9.6 billion euros in
consolidated revenue, up 11% from September 30, 2017 (+5% at constant scope and
exchange rates). The situation is contrasted between the Roads sector, up 16%,
and Specialized Activities, down 9%.
Roads:
On September 30, 2018, revenue for the Roads sector amounted to 8.2 billion
euros, up 16% from September 30, 2017 (+8% at constant scope and exchange
rates):
* in Mainland France, revenue rose by 10%, in line with market growth. Growth
is strong in the Ile-de-France, Hauts-de-France, Grand Est and
Auvergne-Rhône-Alpes regions;
* revenue in Europe increased by 16% (+ 15% at constant scope and exchange
rates). Activity is boosted by Central European countries, in particular
Hungary, the Czech Republic and Slovakia;
* revenue in North America were up 31% (+ 1% at constant scope and exchange
rates) due to the integration of Miller McAsphalt in Canada as of March 1,
2018;
* in the Rest of the World (International excluding Europe and North America),
revenue was up 5% (+ 8% at constant scope and exchange rates). Growth was
strong in Australia (+ 16%), which recorded an increase in its sales of
bituminous products.
Specialized Activites
At the end of September 2018, revenue for Specialized Activities amounted to
1.4 billion euros, down 9% from the first 9 months of 2017 (-8% at constant
scope and exchange rates). The drop is concentrated in the Railway sector
(-16%) and in the Networks sector at Spac (-16%). Colas Rail is witness to a
sharp drop in its business in France (-29%), due in particular to the negative
impact of SNCF strikes on railway work and freight.
Financial performance
Over the first nine months of 2018, current operating income amounted to 155
million euros, compared to 179 million euros in the first nine months of 2017,
a decrease of 24 million euros.
The improvement in the profitability of road activities is not enough to offset
the sharp decline in Specialized Activities, mainly at Colas Rail but also in
Spac's Network activities, because of the additional costs incurred to make up
for delays on a pipeline project in southwestern France, as announced on
October 18.
The share of income from joint ventures and associates amounts to 22 million
euros compared to 43 million euros at the end of September 2017. In the first 9
months of 2018, the contribution of Tipco Asphalt was significantly lower as
its business suffered from interuptions due to crude oil supply issues.
Net income attributable to the Group amounted to 110 million euros at the end
of September 2018, compared to 160 million euros at the end of September 2017.
This decrease is explained by the decline in current operating income and the
share of income from joint ventures and associates, but also by the rise in
financial expenses.
Net financial debt
The increase in financial expenses is related to the increase in net financial
debt at 1,293 million euros at September 30, 2018 compared to 270 million euros
at the end of September 2017. This change is mainly the consequence of external
growth investments made in 2018 for an amount of 720 million euros, of which
585 million euros for Miller McAsphalt and 128 million euros for Colas Rail's
acquisition of Alpiq Engineering Services' rail operations, completed on July
31, 2018.
Work on hand
Up 13% compared to the end of September 2017, work on hand at the end of
September 2018 stood at 8.7 billion euros, including 0.7 billion euros
corresponding to Miller McAsphalt's work on hand. At constant exchange rates,
it was up 15% (+ 5% excluding Miller McAsphalt). Work on hand in Mainland
France is up 3% whereas work on hand at International and French Overseas units
is up 21%.
Outlook
As announced in the press release dated October 18, revenue for 2018 will be
significantly higher than in 2017, in particular due to the contribution of
Miller McAsphalt. The current operating margin is now expected to slightly
decrease compared to 2017.
The financial statements are 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, is a world leader aiming to promote
transport infrastructuresolutions for sustainable mobility. With 55,000
employees in more than 50 countries on five continents, the Group performs some
80,000 road construction and maintenance projects each year via 800
construction business units and 2,000 material production units.
In 2017, consolidated revenue at Colas totaled 11.7 billion euros (48% outside
of France). Net profit attributable to the Group amounted to 328 million euros.
For further information:
Delphine Lombard (tel.: + 33 6 60 07 76 17) /
Rémi Colin (tel.: + 33 7 60 78 25 74) contact-presse@colas.fr
Jean-Paul Jorro (tel.: + 33 1 47 61 74 23) /
Zorah Chaouche (tel.: + 33 1 47 61 74 36) contact-investors@colas.fr
Consolidated income statement for the
in millions of euros 3rd quarter Change
2017 2018
Revenue 3,615 4,241 +17%
Current operating income 315 329 14
Operating income 314 329 15
Net profit attributable
to the Group 248 240 -8
Revenue by operating segment as at September 30
in millions
of euros At At Change Change with
30/09/2017 30/09/2018 constant
scope and
exchange
rates
Roads Mainland France 3,139 3,438 +10% +9%
Roads Europe 1,156 1,336 +16% +15%
Roads North America 1,901 2,492 +31% +1%
Roads Rest of the World 890 932 +5% +8%
Total Roads 7,086 8,198 +16% +8%
Specialized Activities 1,516 1,386 -9% -8%
Parent company 15 18 ns ns
TOTAL 8,617 9,602 +11% +5%