Order Intake went up +9% and backlog reached a new record with growth accelerating in the second quarter
· Backlog amounted to €4,420m, resulting again in the best-ever figure. Order intake reached €1,930m.
· Revenue expansion accelerated in 2T19, with both T&D and Minsait posting growth. It is worth noting America (+15%).
· Minsait sales increased by +6%. Digital solutions revenues up +18% and now it represents 22% of Minsait sales.
· Within T&D, Transport grew its revenues +23%. Within Minsait, Energy & Industry sales went up by +13%.
· EBITDA up +7% excluding the IFRS 16 impact. EBIT grew +8%.
· Minsait EBIT Margin improved 220 basic points and went up to 2.8% despite the lower contribution of the Elections business.
· Net profit of the group worsened -8% mainly as a consequence of higher taxes.
· Free Cash Flow totaled €-237m in 1H19 vs €-61m in 1H18, impacted by the negative contribution of the working capital. Free Cash Flow before working capital was €72m in 1H19 vs €48m in 1H18.
This report may contain certain forward-looking statements, expectations and forecasts about the Company at the time of its elaboration. These expectations and forecasts are not in themselves guarantees of future performance as they are subject to risks, uncertainties and other important factors that could result in final results differing from those contained in these statements. This should be taken into account by all individuals or institutions to whom this report is addressed and that might have to take decisions or form or transmit opinions relating to securities issued by the Company and in particular, by the analysts and investors who consult this document.
Madrid, July 25, 2019 – Fernando Abril-Martorell, Chairman and Chief Executive Officer of Indra:
“1H19 results are marked by the acceleration of revenue and order intake growth in almost every business and geography where Indra has presence, with our backlog reaching another historic high, as well as by the profitability improvement, boosted by Minsait”.
“T&D and Minsait accelerated their revenue growth in 2Q19, with Transport and Energy & Industry standing out at double digit rates. Digital solutions revenues grew +18% in the half-year. Furthermore, all geographies reflected growth acceleration except for Spain, which stabilized. Latin America posted another sound quarter, with Brazil and the main countries showing revenue expansion, both in local currency and reported figures, and with a significantly lower FX impact vs 2018”.
“Indra improved its profitability in 1H19, with Minsait standing out and posting profitability improvement of 220 basic points despite the lower contribution of the Elections business.”
“Cash generation in 1H19 was affected by the strong seasonality of the working capital, by the revenue growth and other operating items. Working capital evolution will improve during the following quarters thanks to the normalization of the delays in milestone collections concentrated in big projects and the own seasonality of the business”.
“To conclude, 1H19 results are in consonance with our revenue and profitability prospects for the year (Guidance 2019). Our management effort is fully focused on achieving all the targets for 2019, with special attention to the profitability (EBIT) of our operations and the working capital”.
Consolidated Financial Statement – First Half (1H) 2019