Vinci’s results once again driven by its motorway concessions

The group's annual turnover shows an increase of 12%, to 68,83 billion euros.

Like last year, more than half of Vinci's profits come from motorway or airport concessions managed by the group (i.e. 2,77 billion euros), including 2 billion in net profit from French motorways alone.

“Vinci Autoroutes’ traffic continued to grow, driven by light vehicles despite fuel prices still being high,” noted CEO Xavier Huillard, quoted in a press release.

Traffic at Vinci Airports has returned to its level before the health crisis, even if “some airports have not yet returned to their 2019 level”.

Last year, the group notably obtained a 30-year concession extension for six airports in the Dominican Republic, until 2060.

On a general level, "the dynamic of almost all of the group's businesses, both in France and internationally, was very positive throughout the year. The only exception is real estate development which is going through a crisis severe economic situation", noted Mr. Huillard.

In fact, Vinci Immobilier, "penalized by the sharp drop in real estate transactions in France in an environment of high interest rates", recorded a net loss of 48 million euros last year. But without much impact on the group's performance, because its turnover (-19%) only represents 1,2 billion euros.

In residential real estate development, Vinci Immobilier's housing reservations fell by 30% compared to 2022. The drop was limited at the end of the year by block sales of housing to social organizations, the group indicated, which also continues to grow in the managed residences sector (students, elderly people, etc.).

Vinci Constructions, the group's main division with 31,459 billion turnover, recorded a net profit of 793 million euros, a clear increase of 16,6%.

Its order book stands at 61,4 billion euros, an increase of 7% compared to December 31, 2022, including 67% internationally.

In 2023, in this sector, Vinci notably obtained a contract to modernize a dam near Brisbane in Australia, the contract for the market for the recovery of materials from the excavation of the Mont-Cenis tunnel for the Lyon-Turin railway line on 10 years, and the construction of a liquefied natural gas reservoir in the Netherlands.

Infrastructure tax

Vinci Energies, which now represents almost 40% of total turnover, has a net profit of 830 million euros compared to 693 million last year, a jump of 19,7%.

Cobra IS, the subsidiary which installs photovoltaic fields all over the world, made a net profit of 262 million euros (+20%).

The Bloomberg analyst consensus expected a total net profit of 4,65 billion euros on a turnover of 67,9 billion.

A dividend of 4,50 euros per share was approved for the 2023 financial year by the board of directors on Wednesday, in view of the general meeting of shareholders on April 9.

For 2024, Vinci approaches the year “with confidence despite an uncertain geopolitical and macroeconomic context”. It anticipates a further increase in its turnover “but of lesser magnitude than that achieved in 2023”.

Vinci specifies that its forecasts are "before taking into account the new tax on long-distance transport infrastructure" announced by the French government, the amount of which it estimates "at around 280 million euros".

“Despite this negative impact, the net result in 2024 could be close to the level reached in 2023,” predicts the group.

Environmentally, Vinci has reduced its direct CO2 emissions by 14% in 2023 compared to 2018, he said. Its published objective is to reduce its direct and operational emissions (scope 1 and 2) by 40% by 2030 compared to 2018, and by 20% on scope 3 (indirect) compared to 2019.