Vinci blames French infrastructure tax for H1 group profits slump

In the company’s results published earlier this week, France-based Vinci said that consolidated net income attributable to owners of the parent stood at €1.995 billion (US$2.2 billion) for the six months to the end of June 2024, compared with €2.089bn (US$2.3 billion) a year earlier.

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Nonetheless, the company said that consolidated revenue in the first half rose to €33.8 billion (US$36.6 billion), up 4.4% compared with a year earlier.

“Remarkable increases were recorded in operating earnings and free cash flow despite the impact of the new tax on long-distance transport infrastructure operators in France, which almost exclusively targets motorway concession companies,” said Xavier Huillard, Vinci chairman and CEO.

“Despite current economic and geopolitical uncertainties, the group is therefore well equipped to maintain its course and move forward with success and enthusiasm.”

Vinci reported that its order book for the first half of 2024 stood at €67.3 billion (US$72.8 billion) – an increase of 9% on the same period in 2023.

Revenue at the group’s building arm, Vinci Construction, increased 2.5% on the previous year to stand at €15.3 billion (US$16.6 billion).

Vinci Construction said that revenue from projects outside France increased by just 1.1% overall to €8.2billion (US$8.9 billion) as a turbulent geopolitical background impacted the group’s Sogea-Satom operations in Benin, Africa. However, it said that revenues in its Major Projects division were supported by the company’s works on the High Speed 2 rail line in the UK.

Revenue from projects in France, on the other hand were up 3.9% on the previous year to €7.1 billion (US$7.7 billion), driven in part by the construction of public buildings, particularly under the ‘Ségur investment programme’ rolled out in the hospital sector by the French government.