Vinci Posts Record Revenue, Earnings Despite Real-Estate Sales Hit

By David Sachs

Vinci's 2023 revenue and earnings beat company records despite a drop in performance at its real-estate business.

The French construction and infrastructure firm said net profit was 4.70 billion euros ($5.05 billion), up from EUR4.26 billion in 2022 and in line with expectations of EUR4.71 billion, according to a FactSet poll of 17 analysts. It proposed a dividend of EUR4.50 per share.

Revenue rose to EUR68.84 billion from EUR61.675 billion a year prior, and slightly higher than analyst expectations of EUR68.29 billion, according to FactSet.

Vinci benefited from growth in all sectors--inside and outside of France--except for its real-estate business, which posted a revenue drop of 19% to EUR1.23 billion on fewer transactions against a backdrop of high interest rates, Vinci said.

Earnings before interest and taxes finished the year at EUR8.36 billion, up from EUR6.82 billion. Analysts had estimated EBIT of EUR8.14 billion.

Free cash flow for the year was EUR6.63 billion, trumping the company's target of at least EUR4.5 billion. Vinci had said in January that free cash flow would top EUR5.4 billion.

Looking ahead, Vinci said 2024 revenue will grow, but at a more limited pace than in 2023. It also predicts higher earnings. Vinci is targeting a 2024 net profit close to the 2023 level, citing a hit from a new French tax on long-distance transportation infrastructure that will total around EUR280 million, the company said.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

February 07, 2024 12:46 ET (17:46 GMT)

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