COLAS (EPA:RE) - Colas - PR Results at end-September 2020

Transparency directive : regulatory news

19/11/2020 07:30

PRESS RELEASE

PARIS, 19/11/2020

- Colas / Blue Iris Photography / Créavision / McAsphalt / Nedim IMRE -
Graphix Images

Results at end-September 2020

* Order backlog: up 3% at EUR9.3 billion, restated for main acquisitions and
  disposals and at constant exchange rates
* Revenue: EUR9.1 billion as of September 30, 2020 (-11% and -9% at constant
  scope and exchange rates). Continued upturn in activity in the 3rd quarter at
  EUR 4.2 billion (-3% and -2% at constant scope and exchange rates)
* Particularly high 3rd quarter current operating income at EUR429 million
  (+19% over one year), current operating margin more than 10% of revenue
* Net profit attributable to the Group: EUR20 million (-EUR120 million)

The Board of Directors of Colas, chaired by Mr. Olivier Roussat, met on
November 17, 2020 to approve the consolidated financial statements as of
September 30, 2020.

Consolidated key figures

In millions of euros         At        At       Change   At constant scope
                         September September            and exchange rates
                         30, 2019  30, 2020
Consolidated revenue     10,182     9,085         -11%         -9%
Of which France           4,885     3,980         -19%        -17%
Of which International    5,297     5,105          -4%         -3%
Current operating profit    223       124         -99
Current operating margin    2.2%      1.4%       -0.8 pt
Operating profit            223        63 (a)    -160
Consolidated net profit
attributable to the Group   140        20        -120
Net debt (b)              1,220       837        -383

The consolidated financial statements have been prepared in accordance with
IFRS 16 applicable since January 1, 2019.

(a) Including EUR 61 million of non-current expenses related to the
reorganization of road activities in France and the continuation of the
dismantling work of the Dunkirk site.
(b) See definition in glossary on page 5.

Impact of the Covid-19 pandemic

As business levels go back to normal, it is no longer possible to clearly
isolate the impact attributable to Covid-19 within the change in Group
performance as a whole.

As a reminder, at June 30, 2020, the impact of the health crisis was estimated
at a roughly EUR810-million loss in revenue and an EUR190-million drop in
current operating profit for the first half of 2020.

Revenue

Consolidated revenue at September 30, 2020 amounted to EUR9.1 billion, down 11%
compared to September 30, 2019 (-9% at constant scope and exchange rates).
Revenue totaled EUR4.0 billion in France (-19% and -17% at constant scope and
exchange rates) and EUR5.1 billion in the international units (-4% and -3% at
constant scope and exchange rates).

The recovery in activity observed in June continued throughout the 3rd quarter,
with revenue of EUR4.2 billion (-3% and -2% at constant scope and exchange
rates).

Roads:

Consolidated revenue for the Roads segment amounted to EUR8.2 billion as of
September 30, 2020, down 10% (-10% at constant scope and exchange rates):

In the Mainland France/French Overseas and Indian Ocean zone, which was the
most heavily impacted by the consequences of the Covid-19 pandemic, business
was down 17% compared to September 30, 2019.

At constant scope and exchange rates, business was virtually stable in the EMEA
zone and in Canada, while it is down 6% in the United States and 11% in the
Asia-Pacific zone.

Railways and other Activities:

After restating the disposal of Smac, whose contribution to Q1 2019 revenue
amounted to EUR141 million, Railways and Other Activities recorded a 7% drop
compared to September 30, 2019.

Financial performance

Current operating profit at September 30, 2020 totaled EUR124 million, down
EUR99 million compared to September 30, 2019. For the 3rd quarter, current
operating profit amounted to EUR429 million, up 19% compared to September 30,
2019. Current operating margin is higher than 10% of revenue. This performance
is the result of good business levels during the summer, cost-cutting efforts
and compensation for the Q2 slump in activity.

Operating profit on September 30, 2020 totaled EUR63 millon, including EUR61
million in non- current expenses relating to the reorganization of the Roads
business in France and to the ongoing dismantling project at the Dunkirk
site.

The share of income from joint ventures and associates amounted to EUR32
million at the end of September 2020, equal to that posted end-September 2019,
boosted by a strong Q3 contribution from Tipco Asphalt.

Net profit attributable to the Group came to EUR20 million as of September 30,
2020, down EUR120 million compared to September 30, 2019.

Net debt

Net debt at September 30, 2020 amounted to EUR837 million, down EUR383 million
compared to September 30, 2019, largely due to the decrease in working capital
requirements in line with the drop in activity during the first half of the
year.

Order backlog

The order backlog at the end of September 2020 totaled EUR9.3 billion euros, up
3% restated for the main acquisitions and disposals and at constant exchange
rates.

In Mainland France, the order backlog was down 1% at EUR3.3 billion, in line
with the decrease in orders secured by Roads Mainland France (decrease in calls
for public procurement bids in a post-electoral period).

The International and French Overseas' order backlog was up 5% at EUR6.0
billion, restated for the main acquisitions and disposals and at constant
exchange rates.

Outlook

After a well-oriented 3rd quarter in terms of business activity and results, Q4
2020 is expected to be down from Q4 2019, against a backdrop of slow recovery
in public procurement in France and uncertainty as to the health crisis in a
number of countries where Colas operates. The various business and
infrastructure recovery plans are not expected to have any impact before
2021.

In addition, on the occasion of the Bouygues Group's "Climate Market Day" to be
held on December 16, 2020, Colas will unveil a target for reducing its
greenhouse gas emissions by 2030 compatible with the Paris Agreement (limiting
global warming to 1.5°C in 2050), as well as the Group's action plan to
achieve it.

Colas (www.colas.com)
Colas, a subsidiary of the Bouygues Group, has one mission: to imagine, build
and maintain sustainable transport infrastructure. Backed by a network of 800
construction business units and 3,000 material production units in more than 50
countries on five continents, the Group's 57,000 employees act locally to
connect communities and foster exchanges for today and tomorrow. Colas'
ambition is to be the world leader in innovative, sustainable mobility
solutions.

In 2019, consolidated revenue at Colas totaled EUR13.7 billion (52% outside of
France).

For further information:
Delphine Lombard (tel. : +33 6 60 07 76 17) / Rémi Colin
(tel.: +33 7 60 78 25 74) contact-presse@colas.fr
Jean-Paul Jorro (tel.: + 33 1 47 61 74 23) / Zorah Chaouche
(tel.: +33 1 47 61 74 36) contact-investors@colas.fr

Condensed consolidated income statement for the 3rd quarter

in millions of euros     Q3 2019     Q3 2020     Change
Revenue                   4,348        4,215     -3%(a)
Current operating profit    359          429      +70
Operating profit            359          413      +54
Net profit attributable
to the Group                242          314      +72

(a) -2% at constant scope and exchange rates

Revenue at September 30 by business segment
                                                            Change
in millions of euros       At        At       Change   at constant scope
                        30/09/2019  30/09/2020         and exchange rates

Roads Mainland France/
Overseas-IO               4,478     3,724       -17%           -17%
Roads EMEA                1,635     1,585        -3%            -1%
Roads United States       1,372     1,327        -3%            -6%
Roads Canada              1,317     1,310        -1%             0%
Roads Asia Pacific          288       262        -9%           -11%
Total Roads               9,090     8,208       -10%           -10%
Railways and other
Activities                1,072       867       -19%            -7%
Parent company               20        10        ns             ns
TOTAL                    10,182     9,085       -11%            -9%

Glossary

Order backlog: the amount of work still to be done on projects for which a firm
order has been taken, i.e. the contract has been signed and has taken effect
(after notice to proceed has been issued and suspensory clauses have been
lifted).

Changes in revenue at constant scope and exchange rates:

- at constant exchange rates: change after translating foreign-currency sales
for the current period at the exchange rates for the comparative period;
- at constant scope: change in revenue for the periods compared, adjusted as
follows:
     for acquisitions, by deducting from the current period those sales of
the acquired entity that have no equivalent during the comparative period;
     for divestments, by deducting from the comparative period those sales of
the divested entity that have no equivalent during the current period. Net
surplus cash/(net debt): the aggregate of cash and cash equivalents, overdrafts
and short-term bank borrowings, non-current and current debt, and financial
instruments.

Net surplus cash/(net debt) does not include non-current and current lease
obligations. A positive figure represents net surplus cash and a negative
figure represents net debt.

COLAS's latest news

06/11/2023 17:45

COLAS (EPA:RE) - Colas - PR Results at end-September 2020

Transparency directive : regulatory news

COLAS's latest news

Other stories