Analysis – Bouygues Group construction businesses*
*Bouygues Construction, Bouygues Immobilier and Colas

At end-September 2021 the backlog in the construction businesses remained high at €31.8 billion, providing good visibility on future activity. 
This was 5% lower than the backlog of €33.5 billion at end-September 2020, reflecting a high basis of comparison related to the very low drawdown of the backlog due to lockdowns, as well as several major contracts won in the first-half of 2020. International markets accounted for 64% of the backlog for Bouygues Construction and Colas at end-September 2021, up 2 points versus end-September 2020. 

International markets accounted for 64% of the backlog for Bouygues Construction and Colas at end-September 2021, up 2 points versus end-September 2020. 
Bouygues Construction’s backlog (-7%** relative to end-September 2020) reflected a high basis of comparison resulting from the slowdown in backlog drawdown and major contracts won in the first half of 2020, and a lower volume of major projects processed in 2021. 
 

Sales
 

The construction businesses reported sales of €20.6 billion in the first nine months of 2021, representing a 9% increase both year-on-year and like-for-like and at constant exchange rates. The increase was driven by a 16% increase in business in France compared to the first nine months of 2020.

The first half of 2020 was affected by the enforcement of a strict lockdown followed by a gradual resumption of activity. International sales were up 3% over nine months compared to the first nine months of 2020.
Sales remained 5% lower than in the first nine months of 2019, due to a high basis of comparison.
Bouygues Construction reported a current operating profit of 9.49 billion euros.
 

Operating profit
 

The construction businesses reported current operating profit of €515 million, representing a sharp year-on-year gain of €382 million and closely in line with the first nine months of 2019. Reaching 2.5%, current operating margin returned to its first nine months of 2019 level, far exceeding nine-month 2020 (0.7%), notably thanks to higher margins at Colas (current operating margin of 2.4% versus 2.2% in nine-month 2019). 

Operating profit reported by the construction businesses was €509 million, up €437 million year-on-year. This included €6 million of non-current charges related to adaptation measures at Bouygues Immobilier, compared to €61 million at Colas in nine months 2020 (related to the reorganization of the roads activities in France and the continued dismantling of the Dunkirk site).
 

A very robust financial structure
 

• The Group had a record level of available cash for an end-September, with a total level of €12 billion, versus €10.1 billion at end-September 2020.
• Net debt at end-September 2021 was €2.6 billion, an all-time low for the period. It represented a year-on-year improvement of €1 billion.
• Net gearing*** was 22% versus 32% at end-September 2020.

Outlook

Based on its nine-month 2021 results, the Group reiterated its outlook:

• In 2021, sales and current operating profit should be very close to the level of 2019. The current operating margin should return to its pre-crisis level. 

• In 2022, current operating profit should continue to grow and exceed the level of 2019. 

Click here to read the full results.


** At constant exchange rates and excluding principal disposals and acquisitions
*** Net debt/shareholders’ equity