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Implenia Record New Profit Highs, Dividends Rise

  • By The Swiss Times
  • 28 February 2024

Implenia record-breaking net profit of 141.8 million Swiss francs in 2023, marking the highest in its history amidst a modest sales increase.

Implenia Record New Profit Highs, Dividends Rise
Keystone/SDA – GAETAN BALLY

Implenia, Switzerland’s largest construction group, reported a profit surge in 2023. The company’s net profit soared to 141.8 million Swiss francs, surpassing previous records. The profit leap from the prior year’s 106.0 million Swiss francs was attributed to operational successes and significant tax advantages.

Specifically, the capitalization of deferred tax assets on loss carryforwards was pivotal in bolstering the bottom line. Despite a challenging economic environment marked by a strong Swiss franc, Implenia elevated its sales by 1.6 percent, reaching 3.6 billion Swiss francs.

Implenia’s equity ratio saw improvement, climbing to 19.8 percent from 17.5 percent in 2022. Adjusting for currency effects would have nudged the ratio to an even 20 percent, slightly missing the company’s own target but still showcasing a solid financial structure.

EBIT Down

However, it wasn’t all upward trends for Implenia. The company’s operating profit (EBIT) experienced an 11.7 percent decline, settling at 122.6 million Swiss francs. This was mainly due to the previous year’s exceptionally high real estate sales, which temporarily inflated the results. Consequently, the operating profit margin adjusted to 3.4 percent, a slight dip from the previous year’s 3.9 percent.

Implenia announced an increased dividend of CHF 0.60 per share in a move that will please shareholders, up from the previous year’s CHF 0.40. This marks a return to shareholder remuneration, underscoring the company’s confidence in its financial stability and prospects.

The company remains committed to its medium-term objectives, aiming for an EBIT margin exceeding 4.5 percent and an equity ratio of 25 percent, signaling continued dividends in the foreseeable future.

©Keystone/SDA

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