Eiffage: Annual results 2018 of the Group
Eiffage’s growth momentum gained pace (+9.9%) during 2018. Organic growth again held up at a brisk level (+5.8%), and it was topped up by selective acquisitions that boosted Eiffage’s European coverage. Profitability improvements in Contracting and Concessions and the significant reduction in finance costs paved the way for a 22% increase in profit attributable to the equity holders of the parent . Towards the end of the year, Eiffage acquired a 5.03% stake in Getlink to strengthen its concessions portfolio and extend its maturity.
In France, heavy goods vehicle motorway traffic held up at a brisk level, with passenger vehicle traffic remaining resilient given the disruption at the end of the year. In Contracting, Eiffage won some very large contracts for Grand Paris Express projects, and the works have started up now. Outside France, the positions held by the Group’s subsidiaries in expanding markets across Europe, selective acquisitions in the region and further development in export mode powered a 34.1% increase.
Operating margin improvements in Contracting and Concessions and the significant reduction in finance costs for the fourth year in a row drove a 22% increase to €629 million in profit attributable to the equity holders of the parent.
The free cash generated after substantial investments in the APRR and AREA networks – management contracts and stimulus plan – helped fund the Group’s investments in growth (€528 million, including €308 million devoted to the acquisition of a stake in Getlink). A dividend payment of €2.4 per share will be proposed at the Annual General Meeting on 24 April 2019. Eiffage anticipates a further increase in its revenue and profits on the strength of the 15% increase in its order book.