*Bouygues Construction, Bouygues Immobilier and Colas
As at the end of September 2022, the backlog of orders for construction businesses was up by 7% to €34.2 billion (at constant exchange rate and excluding main sales and acquisitions, orders increased by 2%). This amount is comparable to the €31.8 billion backlog recorded at the end of September 2021.
At €20.2 billion, the Bouygues Construction backlog (1% lower than at end September 2021) offers good visibility on future activity. There was a slight decline in the backlog for Building & Public Works (lower level of major contracts booked in the last year) while for Energies & Services it remained stable year-on-year. In the first nine months of 2022, Bouygues Construction recorded a 9% increase in order intake compared to the same period in 2021, driven essentially by the normal course of business.
The construction and services businesses reported total sales of €22.4 billion in the first nine months of the year of 2022, up 9% year-on-year. This growth was driven mainly by Colas. Like-for-like and at constant exchange rates, sales were up 4%.
Total sales for Bouygues Construction were up 2%, driven by the excellent performance of Building & Public Works.
Current operating profit for construction and services reached €517 million at end September 2022, very close to the figure for the same period in 2021 (up 2 million). The current operating margin remained stable at 2.3%, compared to 2.5% for the first nine months of 2021.
For Bouygues Construction, current operating profit increased by €32 million for the period and current operating margin improved, reaching 3.0% (compared to 2.7% for the first nine months of 2021). This is thanks to an improvement in the margin for Energies & Services which rose to 3.2% for the first nine months of 2022 (from 2.4% for the same period in 2021) and in that of Building & Public Works, up by a 0.1 percentage point to 2.9%.
Orders taken: €8.1 billion (€3.4 billion in France and €4.7 billion abroad), up 8% on the previous year.
Turnover: €9.7 billion
The Group’s financial situation remains strong
• At €17.7 billion, the Group maintained a very high level of available cash (€12 billion at end September 2021).
• Current operating profit was €1.1 billion, keeping the current operating margin at 4.1%, the same as at end September 2021.
• Net debt was €3,656 million compared to €2,637 million at end September 2021.
• Net gearing remained low at 27% (versus 22% at end September 2022).
Confirmation of the group’s outlook
The Group’s 2022 targets are confirmed:
• In 2022, the Group expects to see a new increase in turnover and in current operating profit.
• After the endorsement of Colas’ greenhouse gas emission reduction targets in 2021, the other business segments are now looking for the SBTi 1 to endorse their own decarbonization targets.
Bouygues remains very vigilant as to any changes in the macroeconomic situation and their direct or indirect consequences on the Group’s activities and results.
Milestones completed in the acquisition of Equans
Bouygues completed a key phase of its growth by finalising the Equans acquisition on 4 October 2022, having obtained all the permissions required under competition and foreign investment law. In addition, on 30 September 2022, it ceded Colas Rail Belgium in order to fulfil its promises to the European Commission. The final acquisition price of the Equans equities was €6.1 billion.
With this operation, Bouygues has become a world market leader in the energies & services sector which is one of the levers of ecological, industrial and digital transition. Equans will be included in Bouygues’ consolidated accounts from October 2022. The “Together” programme has kicked off with the first integration and performance enhancement measures.
• TF1 and RTE1 have joined forces to broadcast an energy consumption weather report based on the EcoWatt system.
• Colas and TF1 have undertaken to reduce their gas consumption by signing the Ecogaz2 charter.
These measures are all aimed at a 10% reduction in the energy consumption of Bouygues Group across all sectors by 2024 in comparison to 2019. They are part of the Bouygues Group climate strategy and will help us to achieve the goals of reducing greenhouse gas emissions of Scopes 1 & 2 as presented during the Group’s Climate Market Day in December 2020.