Vinci, the French construction and infrastructure firm, announced impressive financial results for the year 2023, surpassing previous records despite a decline in its real-estate business.
Stellar Financial Performance
The company reported a net profit of €4.70 billion ($5.05 billion), showing a significant increase from €4.26 billion in 2022. This figure was in line with market expectations of €4.71 billion, as stated by a FactSet poll involving 17 analysts. Moreover, Vinci proposed a dividend of €4.50 per share.
Impressive Revenue Growth
Vinci’s revenue also reflected its strong performance, with a rise to €68.84 billion compared to the previous year’s €61.675 billion. This surpassed analyst predictions of €68.29 billion, according to FactSet data.
Diverse Sector Expansion
Vinci experienced growth across all sectors, both domestically and internationally, with the exception of its real-estate business. The revenue generated by this sector declined by 19% to €1.23 billion due to fewer transactions and increased interest rates.
Exceptional Earnings
Earnings before interest and taxes (EBIT) for the year reached an impressive €8.36 billion, surpassing last year’s €6.82 billion. Analysts had initially estimated EBIT to be €8.14 billion.
Robust Free Cash Flow
Vinci achieved outstanding free cash flow of €6.63 billion, surpassing its target of at least €4.5 billion. In January, the company had projected free cash flow to exceed €5.4 billion.
Next Steps
Looking towards the future, Vinci forecasts continued revenue growth in 2024, albeit at a slightly slower pace than in 2023. The company also predicts higher earnings for the upcoming year. Vinci aims to achieve a net profit in 2024 similar to its 2023 level, despite an expected impact from a new French tax on long-distance transportation infrastructure that will amount to approximately €280 million.
