Implenia: EBITDA and EBIT at record levels
Although Implenia generated slightly lower revenue in the 2016 financial year than in the previous year, it was able to increase EBITDA and EBIT to a new high.
Implenia reported consolidated revenue of CHF 3.26 billion in the 2016 financial year, slightly less than in 2015 (3.28 billion). However, EBITDA climbed to a record 166.2 million (+3%) in the period under review, and reported EBIT for the divisions rose by 20.4 percent to 103.7 million (2015: 86.2 million).
Excluding amortization expense for the intangible assets acquired in the course of the Bilfinger Construction takeover (excl. PPA), EBIT of the business units even reached a new record level of 115 million. Compared with the prior-year figure of 107.7 million, this represents an increase of 6.8 percent.
The Implenia Group's operating profit was 97.9 million, up 22.5 percent on the previous year's figure (79.9 million). Consolidated net profit was 64.5 million, compared with 52 million in the previous year (+23.9%). Free cash flow before acquisitions for fiscal 2016 amounts to 30.1 million - significantly lower than the 103.6 million of the previous year. Implenia admits that it was not possible to maintain net working capital at the low level of the previous year.
Development segment with new record result
The Development segment, with real estate project development in Switzerland, achieved EBIT of 37 million in the 2016 financial year, just exceeding the record result achieved in 2015 (36.3 million). Implenia cites the generally good market conditions and the strong portfolio of its own projects as reasons for this.
Development activity continued to focus on the key regions of Zurich and Arc Lémanique. The full project pipeline, characterized by large sites in western Switzerland (Geneva/Lausanne) and German-speaking Switzerland (Winterthur), will secure the segment's future business, Implenia added.
Switzerland segment with turnaround in Buildings
The Switzerland segment, which includes services in the modernization of residential and commercial real estate, total/general contracting, building construction, road construction and civil engineering, as well as the pavement and gravel plants in Switzerland, was unable to report an increase in sales. However, EBIT increased by 45 percent or 18 million to 56.3 million.
According to Implenia, the increase was largely attributable to the traditional total and general contractor business (Buildings). At 2.63 billion, the Switzerland segment was able to maintain its order backlog at the previous year's level (2015: 2.64 billion).
EBIT target for 2017 confirmed
At 5.17 billion, the order backlog for the entire Group at the end of December 2016 was roughly on a par with the record level of the previous year (5.13 billion). It is therefore confident about 2017 and subsequent years, partly because of the operational progress made and the fact that the Group has emerged stronger from the past year in terms of geographical breadth and technical expertise, Implenia said. In the medium term, Implenia is aiming for a top-line volume of around five billion and an EBITDA margin of between 5.25 and 5.75 percent. The EBIT target for 2017 of 140 to 150 million is confirmed.
Implenia is also announcing two personnel changes at the same time: Calvin Grieder, Vice Chairman of the Board of Directors, has decided not to stand for re-election at the next Annual General Meeting after four years on the Board. In addition, Dr. Jens Vollmar is to assume full responsibility for the management of the Buildings business unit as of February 1, 2017. Vollmar has been with Implenia since 2013 and took over operational management of the business unit under CEO Anton Affentranger in February 2016.
