Implenia confirms guidance for full year
As expected, Switzerland's largest construction company fell short of the previous year's profit in the first half of the year, but believes it is on course to achieve the targets already communicated following the Wincasa takeover.
Implenia generated EBIT of CHF 49.9 million in the first half of the year. Although this was well below the previous year's figure (CHF 95.1 million), the construction group has confirmed its communicated target of an operating profit in the region of CHF 120 million for the year as a whole. When presenting the 2022 Annual Report, Implenia had already pointed out that the figures were heavily influenced by project sales in the Real Estate division, which would not be repeated in the new year.
Real Estate division maintains EBIT target of CHF 40 million
In the first half of 2023, the Real Estate division generated EBIT of CHF 16.1 million, compared to CHF 75.6 million in the same period of the previous year. The Real Estate division is on track to achieve its 2023 EBIT target of over CHF 40 million through planned transactions. It is the only one of Implenia's four divisions to report its own EBIT guidance. The carrying amount of the existing real estate portfolio rose from CHF 129.9 million to CHF 158.8 million. At the end of 2022, the market value was CHF 351 million. "The partnership with Ina Invest continued to develop successfully," Implenia also writes.
Sales up on a currency-adjusted basis
At CHF 1.73 billion, Group sales were at the previous year's level (CHF 1.77 billion); adjusted for currency effects, they amounted to CHF 1.81 billion. The order backlog increased from CHF 7.1 billion to CHF 7.3 billion, or CHF 7.5 billion when adjusted for currency effects.
Wincasa: earnings contribution as early as 2023
All divisions were profitable in the first half of the year, according to the report. The Buildings division increased its operating performance at EBIT level excluding Wincasa from CHF 17.6 million to CHF 19.8 million. Including transaction and integration costs as well as PPA amortization from the acquisition of Wincasa, reported EBIT amounted to CHF 18.2 million. For the year as a whole, the division is already expecting a positive EBIT contribution from the Wincasa transaction - even taking into account the transaction costs and PPA amortization. "The acquisition strengthens the sales and margin profile of the entire company", said CEO André Wyss at the analyst conference. An outstanding tranche of the purchase price for Wincasa of CHF 71.6 million is due at the beginning of 2024 according to the agreement. The integration of the real estate services provider as a legally and operationally independent unit within the Buildings division is proceeding according to plan, Implenia announced. Sales in the Buildings division rose from CHF 851 million to CHF 906 million. At CHF 2.81 billion (H1 2022: CHF 3.14 billion), the order backlog was "at a high level and remains of good quality despite the challenging market environment".
Equity ratio increased
Despite the dividend payment in March, Implenia increased equity by CHF 18.7 million to CHF 501.4 million in the first half of the year. The equity ratio increased from 17.5% to 18.0% during the half-year. "The half-year result is another important step on the way to sustainably improving the equity ratio to over 20%," Implenia writes in a press release.
For 2023 as a whole, Implenia confirms not only its EBIT target, but also its forecast for the equity ratio of over 20%. The medium-term target remains a ratio of 25%. The Group also aims to achieve an EBIT margin of around 3.5% in the medium term and over 4.5% in the medium to long term. (aw)
