Glattpark (Opfikon), February 28, 2024
“Implenia achieved its goals for 2023 in a challenging market environment,” says CEO André Wyss, “which underlines that we are excellently positioned with our strong team and our comprehensive, integrated range of services. Our diversified services and extended value chain enable sustainable, profitable growth.”
With an EBIT of CHF 122.6 million, or CHF 126.5 million adjusted for currency effects, Implenia achieved its target; Record consolidated profit of CHF 141.8 million.
Implenia achieved an EBIT of CHF 122.6 million (2022: CHF 138.9 million, including above-average income from the Real Estate division), adjusted for currency effects it was CHF 126.5 million. The group’s sales amounted to CHF 3,596 million (2022: CHF 3,538 million), adjusted for currency effects, it was significantly above the previous year’s level. The EBIT margin was 3.4% (2022: 3.9%). The order backlog remained at a high level of CHF 7,293 million adjusted for currency effects, or CHF 6,985 million reported (2022: CHF 7,221 million). The strict application of Value Assurance – Implenia’s risk management – ensures the solid risk and margin profile of these projects. Consolidated profit was at a record level of CHF 141.8 million (2022: CHF 106.0 million), thanks to strong operating performance and capitalization of deferred tax assets on loss carryforwards.
The group generated free cash flow of CHF 87.3 million (excluding the purchase price paid for Wincasa) and improved the equity ratio to 19.8%, adjusted for currency effects to 20.0%
Implenia was able to increase its equity by CHF 93.1 million to CHF 575.8 million in the 2023 financial year (2022: CHF 482.7 million). The group improved the equity ratio to 19.8% as of December 31, 2023 (2022: 17.5%), adjusted for currency effects to 20.0%. This further strengthened financial stability. Due to the acquisition of Wincasa, total assets increased to CHF 2,906 million (2022: CHF 2,753 million). The free cash flow amounted to CHF −12.7 million (2022: CHF 124.0 million), or CHF 87.3 million, excluding the payment of CHF 100 million already made for Wincasa.
All divisions contributed to the strong group result; Order backlog remains at a high level
The Real Estate Division achieved a good EBIT of CHF 40.5 million (2022: CHF 81.1 million), despite a market-related valuation correction from the investment in Ina Invest of CHF −4.2 million. The result is not comparable to the same period in the previous year Above-average income from sales of large real estate projects in the first half of 2022. After several divestitures and new investments in attractive locations in Switzerland, the book value of the real estate portfolio as of December 31, 2023 was CHF 149 million (2022: CHF 141 million).
The Division Buildings further increased EBIT to CHF 42.8 million (2022: CHF 35.4 million). Both markets, Switzerland and Germany, contributed to this continuous improvement in performance. With an EBIT of CHF 6.7 million, after transaction and integration costs as well as PPA depreciation, Wincasa has already made a good contribution to earnings. The division’s sales increased to CHF 1,861 million (2022: CHF 1,745 million). As expected, the order backlog was lower and amounted to CHF 2,598 million (2022: CHF 3,118 million). The division creates added value for customers through early involvement in projects and collaborative partnerships. The division was able to win new projects and expand its competencies in the growing areas of real estate for healthcare and research as well as in modernization.
The Civil Engineering Division At CHF 37.7 million, achieved a higher EBIT than in the previous year (2022: CHF 35.8 million). Sales amounted to CHF 1,846 million (2022: CHF 1,895 million), adjusted for currency effects, CHF 1,947 million. The order backlog was above the previous year’s level at CHF 4,194 million (2022: CHF 3,951 million), in line with the strategic focus on profitable and complex infrastructure projects. With its many years of experience and comprehensive expertise in large transport and energy infrastructure projects, the division is a sought-after partner for public clients. In this way, the division contributes to the advancing energy transition and to the networked mobility of the future in Europe.
The Specialties Division increased EBIT including one-off effects to CHF 7.6 million (2022: CHF 4.4 million). Sales amounted to CHF 157 million (2022: CHF 163 million); adjusted for currency effects, they were at the previous year’s level despite adjustments to the division’s portfolio. The strategic business units have grown profitably. The order backlog rose to CHF 193 million (2022: CHF 152 million) and was therefore significantly above the previous year’s level. The division will continue to expand its planning and engineering competencies by developing and scaling customer-centric business models, further adapting its portfolio and looking for attractive acquisition opportunities. With its innovative services, the division contributes to the sustainable development of the construction and real estate industry.
Sustainability Report 2023: strong commitment to a more sustainable construction and real estate industry
Proven planning and execution expertise for sustainable real estate and infrastructure is increasingly in demand by private and public customers, especially for large and complex projects. Implenia’s goal is to shape the change towards a more sustainable construction and real estate industry. The group has been publishing a sustainability report since 2012 in accordance with the guidelines of the Global Reporting Initiative (GRI).
The relevant ESG ratings such as Sustainalytics (Industry Top Rated) and MSCI (AAA) confirmed Implenia’s leading position as an industry leader in sustainability in 2023. EcoVadis awarded the group gold status again in 2023.
Based on a broad portfolio study, Implenia 2023 has defined a decarbonization strategy for its own development projects, which is now being implemented. By clearly focusing on the sustainable management of real estate, Wincasa can positively influence the operating phase of real estate, which is crucial for the CO2 footprint. Current information on sustainability indicators and ongoing measures as well as the current status of the 2025 sustainability goals can be found in the one published today Sustainability report 2023.
Implenia is targeting an EBIT of CHF ~130 million for 2024 and is sticking to its medium-term financial targets
Implenia expects an EBIT of CHF ~130 million for the full year 2024, based on strong operating business in a challenging market environment. In the medium term, the group is targeting an EBIT margin of >4.5% and an equity ratio of 25%.
There is a high and increasing demand for large real estate projects in attractive, urban locations as well as for complex infrastructure projects. It is stimulated by the megatrends of population growth and urbanization, energy transition and investments in new or modernized transport and energy infrastructure.
With its comprehensive, integrated range of services along the entire value chain and sector-oriented specialization (health, research, transport and energy infrastructure, etc.), Implenia is excellently positioned in these areas. Based on many years of experience, the group has built up comprehensive competencies for its differentiated and scalable range of services. The portfolio mix of real estate and infrastructure services with high demand enables sustainable profitable growth. By combining organic and inorganic growth, accompanied by an asset-light strategy, the group is also opening up innovative, high-margin business areas.
The Board of Directors will propose a dividend of CHF 0.60 per share to the General Meeting
Implenia wants its shareholders to participate in the company’s increasing success. For this reason, the Board of Directors will propose to the General Meeting on March 26, 2024 to distribute a dividend of CHF 0.60 (previous year: CHF 0.40) per share. The Board of Directors assumes that Implenia will continue to pay dividends continuously in the future.