Chariman and CEO Xavier Huillard said: "The Group's overall performance in 2016 was outstanding: while consolidated revenue stabilised, Vinci achieved strong growth in operating income and net income and maintained free cash flow at a high level.”
He added: “Despite uncertainty regarding the global economy, we expect increased activity in both our Concessions and Contracting businesses in 2017, along with higher Group earnings, because of our strong order book, the improving outlook of our markets and the momentum arising from our combined Concessions-Contracting business model."
Business levels were down slightly in contracting, but order volumes grew in the three business lines (Vinci Energies, Eurovia, Vinci Construction) in France. Outside France, the company said that its geographical and business diversification meant that it held out well, despite lower investment in oil- and commodity-producing countries. The group completed several bolt-on acquisitions, particularly at Vinci Energies in Australia and Portugal and Eurovia in Canada and Chile.
Companies continued to make adjustments in order to improve their competitiveness, and achieved wider margins.
Contracting revenue (Vinci Energies, Eurovia and Vinci Construction) was €31.5bn, down 3.4%. The like-for-like decline was 3.8%, much smaller than that seen in 2015, which the company said confirmed a stabilisation in business levels that began in the last few months. Recently acquired companies had a positive impact (+1.8%), offsetting the negative impact of exchange rate movements (-1.4%) caused by the euro's rise against most other currencies, particularly sterling. Changes related to companies acquired in 2015 and 2016, at Vinci Energies (Orteng in Brazil, J&P Richardson in Australia), at Eurovia (Rail Cantech in Canada, Bitumix CVV in Chile) and at Vinci Construction (HEB in New Zealand, Grupo Rodio Kronsa in Latin America).
Consolidated revenue totalled €38.1bn, down 1.2% relative to 2015. The 1.8% like-for-like decline in revenue and the negative impact of exchange rate movements were partly offset by the positive impact of recent acquisitions. Concessions revenue totalled €6.3bn, up 8.5% on an actual basis or 6.5% like-for-like.
Earnings before interest, tax, depreciation and amortization (Ebitda) totalled almost €6bn, up 5.3% with respect to 2015. The Ebitda margin was 15.7%, up 100 basis points. That improvement was driven by progress at Vinci Autoroutes and Vinci Airports.
Operating income from ordinary activities (Ebit) rose 11.1% to almost €4.2bn. Ebit margin rose to 11.0% from 9.8% in 2015.
Ebit from the concessions business rose by 14.7% to almost €3bn. Contracting generated Ebit of €1.2bn, an increase of 4.8% and equal to 3.7% of revenue (3.4% in 2015).
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