Strong growth for Vinci
By Sandy Guthrie26 October 2018
French construction and concessions group Vinci has reported strong revenue growth, up 7.7% to €31.4 billion in the first nine months of 2018, including a 9.5% increase in the third quarter.
It said that contracting revenue was up 8.4%, with growth in all three of its business lines in that sector – Vinci Energies, transport infrastructure firm Eurovia and Vinci Construction.
The group said it was entering the final quarter of 2018 with confidence, and confirmed its full-year forecasts.
Vinci Construction reported revenue of €10.14 billion, which was up 0.9% on an actual basis, but down 0.7% on a like-for-like basis.
In France, which represented 53% of the total, revenue was €5.38 billion, up 1.8% like-for-like. Vinci said this increase confirmed the strength of the building and public works market, particularly in the Paris region.
Outside France, revenue was €4,761 million, down 1.1% on an actual basis or 3.4% like-for-like. Revenue was reported to have grown in Central Europe, Asia and Oceania, but declined in Africa, the UK and business areas related to the oil and gas industry.
Business levels at Vinci Construction Grands Projets were down, and this was said to be a result of the completion of several large projects.
Order intake fell 6% at Vinci Construction. The company said this was because of a more selective approach to taking on new business, and a high base for comparison after it won some large contracts relating to the Grand Paris Express project in 2017.
The order book at 30 September, 2018, amounted to €17.7 billion, up 2% over 12 months, and representing more than 15 months of Vinci Construction’s average business activity.
Revenue at Eurovia was €6.45 billion, up 9.9% on an actual basis and up 8.2% like-for-like.
France took 57% of this total, and consolidated revenue was €3.67 billion, up 10.4% on an actual basis or up 9.4% like-for-like. After several years of recession, the recovery in traditional roadworks markets that started in 2017 was said to have been confirmed in 2018.
Outside France, consolidated revenue was €2.79 billion, up 9.2% on an actual basis or up 6.7% like-for-like.
Business levels rose in the German and UK markets after a tough start to the year caused by poor weather conditions. They were said to have remained strong in Central Europe (Poland and the Czech Republic), Canada and Chile.
Order intake rose 10% at Eurovia. The order book at 30 September, 2018, amounted to €6.5 billion, up 7% over 12 months, and represented nine months of Eurovia’s average business activity.