EQS-News: STRABAG SE: Higher net income despite declining markets in 2023
Source: EQS
Output volume, revenue and order backlog Financial performance The earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 13% to € 1,418.31 million in 2023. In recent years, the EBITDA has been sustainably established above the € 1.0 billion mark. As a result, the EBITDA margin showed a year-on-year increase from 7.4% to 8.0%. The depreciation and amortisation expense fell slightly by 2.3% to € 538.12 million. The earnings before interest and taxes (EBIT) increased significantly by 25% to € 880.20 million in 2023. The EBIT margin grew to 5.0% (2022: 4.2%), thus exceeding the original forecast. This development is due to positive earnings effects resulting from the strong market positions in the North + West segment. The net interest income increased to € 44.13 million (2022: € 10.7 million). The strong year-on-year growth is primarily due to higher interest income – caused by the higher interest rate level and STRABAG SE’s net cash position. The exchange rate result included in this figure turned negative in 2023 at € -15.90 million (2022: € 3.20 million) due to negative exchange rate differences. The income tax rate, at 31.5%, was slightly lower than in the previous year. The net income amounted to € 633.39 million, which corresponds to an increase of 32% compared to 2022. The earnings owed to minority shareholders totalled € 2.89 million, compared to € 7.68 million in the previous year. The net income after minorities increased by 33% to € 630.51 million, the highest figure in the history of Financial position and cash flows The total of assets and liabilities increased year-on-year from € 12,683.76 million to € 13,706.21 million mainly due to the increase in cash and cash equivalents and inventories. A decline was recorded in other financial assets. The equity as at The cash flow from operating activities increased significantly year-on-year from € 812.86 million to € 1,816.51 million. This development is due to an increase in cash flow from earnings on the one hand and an unexpected reduction in working capital on the other. The forecast reduction in advance payments as a result of higher interest rates did not materialise for the time being. The cash flow from investing activities was more negative, as expected, particularly due to higher investments in financial assets and enterprise acquisitions, including acquisitions in facility services, energy and building services management, and amounted to € -654.87 million (2022: € -560.42 million). The cash flow from financing activities was less negative at € -430.58 million (2022: € -503.66 million). The repayment of a bond in the amount of € 200 million in the previous year resulted in an effect that more than compensated for the acquisition of own shares tendered as part of an anticipatory mandatory offer by the Austrian core shareholders. Outlook Based on the continuing high order backlog, which already extends into 2025, the Management Board expects the output volume to increase slightly from its already high level. Specifically, this figure is forecast to reach around € 19.4 billion in the 2024 financial year. Due to the economic challenges in the construction industry, the earnings for 2023 do not change anything about the target of generating an EBIT margin of at least 4% in the 2024 financial year. “Buildings account for 38% of global CO2 emissions. In order to achieve the European climate targets, there is no way around the renovation and decarbonisation of existing buildings. Reconstruction, conversion and refurbishment is therefore firmly anchored in our strategy 2030,” explains CEO STRABAG SE’s Annual and Sustainability Report is available for the first time as a complete online report at report.strabag.com. Our dense network of subsidiaries in various European countries and on other continents extends our area of operation far beyond the borders of
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Language: | English |
Company: | |
Donau-City-Straße 9 | |
1220 |
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Phone: | +43 1 22422 – 1089 |
Fax: | +43 1 22422 - 1177 |
E-mail: | investor.relations@strabag.com |
Internet: | www.strabag.com |
ISIN: | AT000000STR1, AT0000A36HJ5 |
Listed: | |
EQS News ID: | 1885979 |
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1885979 25.04.2024 CET/CEST