* Work on hand reaches a record EUR10 billion, +18 % at constant exchange
rates, +11 % excluding Miller McAsphalt
* Revenue is up sharply : EUR2.3 billion, +20 % (+14 % at constant scope and
* Current operating income is stable at -EUR298 million, up EUR37 million
excluding Miller McAsphalt (consolidated as of Q2 2018)
* Net profit attributable to the Group: -EUR227 million (vs -EUR217 million)
The Board of Directors of Colas, chaired by Mr. Hervé Le Bouc, met on May 14,
2019 to examine the situation on March 31, 2019 and outlook for the current
Consolidated key figures
1st quarter exchange
in millions of euros 2018 (a) 2019 (a) Change rates
Consolidated revenue 1,898 2,287 +20% +14%
of which France 1,166 1,353 +16% +16%
of which International 732 934 +28% +11%
Current operating profit (298) (298) =
Current operating profit after Leases (b) (301) (301) =
Operating profit (298) (298) =
Operating profit after Leases (b) (301) (301) =
Net profit attributable to the Group (217) (227) -10
Net surplus cash/(net debt)(b) (719) (1,068) -349
(a) The consolidated
financial statements for Q1 2019 have been prepared in accordance with IFRS 16
- Leases and IFRIC Interpretation 23 - Uncertainty over Income Tax Treatment
Uncertainty. The consolidated financial statements for the 1st quarter of 2018
are presented pro forma.
(b) See definitions in glossary on page 6.
Seasonal nature of business activity
Due to the highly seasonal nature of the Group's businesses, operating losses
are recorded each year during the 1st quarter. As such, 1st quarter results are
not representative of a full fiscal year.
Main changes in scope
The Miller McAsphalt Group, acquired on February 28, 2018, was consolidated as
of Q2 2018. The catenary activities of Alpiq Engineering Services, acquired on
July 31, 2018, were consolidated as of August 1, 2018.
The impact of these two acquisitions amounted to 0.9 billion euros on work on
hand at the end of March 2019, 103 million euros on 1st quarter 2019 revenue
and -38 million euros on current operating profit for the 1st quarter of
Changes in the presentation of business segments
Because of its close ties to French road subsidiaries, the Safety and Signaling
business at Aximum is now part of the Mainland France Roads segment as of
January 1, 2019. A pro forma presentation of results by business segment is
included in the appendix of the financial statements.
Consolidated revenue for the 1st quarter of 2019 amounted to 2.3 billion euros,
up 20% compared to 1st quarter 2018 (+ 14% at constant scope and exchange
rates). France accounted for 1.4 billion euros (+ 16%) and the international
units accounted for 0.9 billion euros (+ 28%, and + 11% at constant scope and
Revenue for the 1st quarter of 2019 totaled 1.9 billion euros, up 16% at
constant scope and exchange rates. Business benefited from more favorable
weather conditions than in the 1st quarter of 2018.
In Mainland France, revenue is up 17% in a promising pre-election market.
International and French Overseas revenue is up 26% (+ 13% at constant scope
and exchange rates). Business was up 12% in Europe, 10% in North America and
16% in the Rest of the World at constant scope and exchange rates.
Railways and other Specialized Activities:
Revenue amounted to 0.4 billion euros, up 18% (10% at constant scope and
exchange rates). In Railways, revenue at Colas Rail was up 11% at constant
scope and exchange rates. In Networks, business at Spac was down 10% and in
Waterproofing, revenue at Smac was up 14% at constant scope and exchange
Current operating profit for the 1st quarter of 2019 was -298 million euros,
which is stable compared to the 1st quarter of 2018 and a 37-million euro
improvement excluding the seasonal losses of Miller McAsphalt, consolidated as
of Q2 2018. This is the result of improved current operating profit in the
Roads segment, mainly in Mainland France and in the Rest of the World, and in
Railways and other Specialized Activities.
Net profit attributable to the Group amounted to -227 million euros, compared
with -217 million euros at the end of March 2018.
Net surplus cash/Net debt
Net debt as of March 31, 2019 amounted to 1,068 million euros, compared to net
debt of 475 million euros as of December 31, 2018. The change stems from the
seasonal nature of the Group's businesses.
Colas operates on long-term growth markets, as needs for transport
infrastructure construction and maintenance are high, both in developed and
Colas is pursuing its development in road and rail transport infrastructure
solutions to promote sustainable mobility. The Group has the assets, skills and
financial resources necessary for this growth.
Work on hand at the end of March 2019 reached a record level of 10 billion
euros, up 18% at constant exchange rates and 11% excluding Miller McAsphalt.
Work on hand in France (3.8 billion euros) is up 7%, while work on hand in the
International and French Overseas units (6.2 billion euros) is up 26% at
constant exchange rates. Internationally, the 1st quarter of 2019 was marked by
the securing of the Liège, Belgium tramway project along with several railway
contracts in the United Kingdom.
Revenue will be impacted by approximately 500 million euros through the
disposal of Smac, which is expected to be completed in the second quarter of
2019. The decrease should be partially offset by an increase in revenue for the
Current operating profit should improve thanks to strong markets and a recovery
in profitability at Colas Rail.
Colas, a subsidiary of the Bouygues Group, is a world leader whose mission is
to promote transport infrastructure solutions for sustainable mobility. With
58,000 employees in more than 50 countries on five continents, the Group
performs some 85,000 road construction and maintenance projects each year via
800 construction business units and 2,000 material production units. In 2018,
consolidated revenue at Colas totaled 13.2 billion euros (51% outside of
France). Net profit attributable to the Group amounted to 226 million euros.
As of As of exchange
in millions of euros 31/03/2018 31/03/2019 Change rates
Roads Mainland France 868 1,018 +17% +17%
Roads Europe 225 253 +12% +12%
Roads North America 161 261 +63% +10%
Roads Rest of the World 276 318 +15% +16%
Total Roads 1,530 1,851 +21% +16%
Railways and other
Specialized Activities 363 429 +18% +10%
Parent Company 5 6 ns ns
TOTAL 1,898 2,287 +20% +14%
Work on hand: the amount of work still to be done on projects for which a firm
order has been taken, i.e. the contract has been signed and has taken effect
(after notice to proceed has been issued and suspensory clauses have been
Changes in revenue at constant scope and exchange rates:
- at constant exchange rates: change after translating foreign-currency sales
for the current period at the exchange rates for the comparative period;
- at constant scope: change in revenue for the periods compared, adjusted as
* for acquisitions, by deducting from the current period those sales of the
acquired entity that have no equivalent during the comparative period;
* for divestments, by deducting from the comparative period those sales of
the divested entity that have no equivalent during the current period.
Current operating profit after Leases: current operating profit, after interest
expense on lease obligations Operating profit after Leases: operating profit,
after interest expense on lease obligations
Net surplus cash/(net debt): the aggregate of cash and cash equivalents,
overdrafts and short-term bank borrowings, non-current and current debt, and
financial instruments. Net surplus cash/(net debt) does not include non-current
and current lease obligations. A positive figure represents net surplus cash
and a negative figure represents net debt.