The French construction and infrastructure group VINCI achieved new sales and earnings records last year despite a slump in the real estate business.
Net profit rose to 4.70 billion euros after 4.26 billion in the previous year, as VINCI SA announced. This was within the analyst expectations of 4.71 billion euros raised by Factset. The company proposes a dividend of 4.50 euros per share.
Sales rose from 61.68 billion euros in the previous year to 68.84 billion euros, slightly above the Factset estimate of 68.29 billion euros.
VINCI benefited from increases in all sectors – inside and outside France – except real estate, which reported a 19 percent decline in sales to 1.23 billion euros. This is due to a lower number of transactions amid rising interest rates, VINCI said.
Earnings before interest and taxes (EBIT) rose from 6.82 billion to 8.36 billion euros. Analysts had expected EBIT of 8.14 billion euros.
Free cash flow for the year was 6.63 billion euros, exceeding the company’s target of at least 4.5 billion euros. VINCI had already announced in January that free cash flow last year was above the previous year’s level of 5.4 billion euros thanks to customer inflows and postponed investments.
For 2024, VINCI expects sales growth, which will, however, be lower than in 2023. Net profit is expected to be around the same level as 2023, despite a burden of around 280 million euros from a new French infrastructure levy for long-distance transport, the company said with.
On EURONEXT Paris, VINCI shares temporarily fell by 0.80 percent to 116.52 euros.
By David Sachs
PARIS (Dow Jones)
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