Despite the crisis, Switzerland’s number one construction company saw its net profit drop from 0.54 to 53.61 million francs.
Taking advantage of the IPO of its real estate subsidiary Ina Invest, Implenia easily weathered the headwinds linked to the Covid-19 pandemic in the first half of 2020. Despite declining revenues, Switzerland’s number one construction company saw its net profit soared in the space of one year from 0.54 to 53.61 million francs.
Operating profit before interest, taxes, depreciation and amortization (EBITDA) jumped 39.3% to 101.67 million francs, while operating profit took off, reaching 52.2 million at the end of June 2020, against 9.3 million twelve months earlier, the Zurich group said on Wednesday.
However, turnover fell by 11.8% to 1.926 billion, as a result of the measures implemented to fight against the spread of the new coronavirus.
The decline in revenues led to a drop in EBITDA of around CHF 37 million due to the effects of the Covid-19 pandemic on volumes, productivity and costs. The Unit Civil business unit, integrated into the Civil Engineering division, suffered the most due to the temporary shutdown of certain projects and a drop in productivity.
The rise in Implenia’s profitability mainly reflects the transfer of half of the portfolio of development projects to the newly created company Ina Invest and the latter’s listing on the stock market last June. The operation enabled the construction group to generate a one-time revaluation surplus of 107.1 million francs.
Implenia now has a 42.5% minority stake in Ina Invest. The overall performance turned out to be below average analyst expectations. Surveyed by AWP, the latter had anticipated revenues of 2.05 billion francs and an Ebitda of 103.4 million.
Referring to the rest of the year, Implenia is optimistic. Deeming itself well positioned, the group based in Dietlikon confirms its outlook for 2020 at the group level before the impact of Covid-19 as well as its medium-term EBITDA margin target of around 6.5%.