Implenia significantly increases half-year profit

Compared with the same period last year, Implenia more than doubled its EBIT. While the key figure was still CHF 40 million in the first half of 2021, the construction services provider now achieved CHF 95.1 million. Operating performance at EBIT level was CHF 93.9 million, compared with CHF 22.9 million in the same period of the previous year.

As expected, sales fell from CHF 1.88 billion to CHF 1.77 billion. The reasons for this were the withdrawal from certain regions, sales of non-strategic business units and foreign currency effects, Implenia wrote in a statement. The order book stood at CHF 7.1 billion (previous year: 6.6 billion).

"Implenia is coming out of the transformation stronger than before," says CEO André Wyss, commenting on the results. The Group is "ideally positioned for profitable growth in the relevant markets".

Real Estate division benefits from sales

The Real Estate Division generated above-average income from the sale of major real estate projects, thus increasing its operating performance to CHF 75.6 million (previous year: CHF 22.3 million), Implenia adds. The book value of the portfolio amounts to CHF 130 million (previous year: 135 million). The division's service business has grown in recent years, and assets under management exceed CHF 1.1 billion. The investment in Ina Invest is valued at CHF 152.6 million (previous year: 144.8 million).

The Buildings Division increased its operating performance from 16.2 million in the previous year to now 17.6 million CHF. Sales decreased slightly to CHF 851 million (previous year: 854 million) and the order backlog amounts to CHF 3.14 billion (previous year: 3.5 billion).

The Civil Engineering division broke even for the first time in the first half of the year, reporting a result of CHF 2.8 million (previous year:-4.8 million) and an EBIT of CHF 3.7 million (previous year: 10.2 million). Sales declined as expected due to the strategic focus on subdivisions and reached CHF 916 million (previous year: 1.04 billion). The order backlog reached a record level of 3.87 billion.

The Specialties Division increased its operating performance to CHF 0.8 million after CHF -1.2 million in the previous year. (operating performance HY1.2021: CHF -1.2 million). The transformation of the division is thus well on track. Due to the sale of non-strategic business units, sales decreased from CHF 96 million in the previous year to CHF 79 million.

Equity base significantly improved

Implenia increased its equity by CHF 106 million to CHF 452 million in the period under review, thus already exceeding the CHF 80 million increase in equity planned for the year as a whole. The revaluation in the first half of the year resulted in a positive effect of CHF 46 million in equity, the company said.

The equity ratio as at 30 June 2022 was 16 percent (previous year: 11.1%). The half-year result is an important step towards the goal of sustainably improving the equity ratio to over 20 percent, Implenia writes in the release.

Confident outlook

Implenia is confident about the year as a whole despite the economic uncertainties caused by the war in Ukraine, higher prices for construction materials and energy, and inflation. Although market growth is weakening, a "continued pleasing order intake and significant milestones in the first half of the year" show that the company is strongly positioned in the relevant markets and that its services are in demand.

For the full year 2022, the company expects an EBIT of over CHF 130 million, excluding further one-off effects from the transformation. If above-average margins were achieved in the reporting period thanks to a significant profit contribution from the Real Estate division, an Ebit margin of 3.5 percent is expected in the medium term, Implenia said. The long-term target is a figure of 4.5 percent.