- Continued strong demand from clients in Infrastructure, Water and Environment
- Net revenues at €632 million, organic growth of 0.5%, FX impact of -4.5%
- Order intake at €693 million, organic backlog growth at 3% quarter-to-date
- Operating EBITA increased with 21% to €58 million (Q1 2020: €48 million); resulting in a margin improvement to 9.2% (Q1 2020: 7.2%)
- Net working capital of 15.3% (Q1 2020: 19.2%); DSO of 78 days (Q1 2020: 95 days)
- Free cash flow improved to -€39 million (Q1 2020: -€84 million)
CEO STATEMENT
As we have started to implement our new strategy, “Maximizing Impact”, we will obviously continue to focus on creating a lower carbon future and mitigating the impacts of climate change. This is clearly exemplified in the work we have won from both our public and private sector clients. Additionally, our recent wins in Infrastructure demonstrate our excellent position in capitalizing on the significant investments made in sustainable Infrastructure, in particular in
KEY FIGURES
in € millions | |||
Period ended | 2021 | 2020 | change |
Gross revenues | 812 | 872 | -7% |
Net revenues | 632 | 658 | -4% |
FX impact | -4.5% | 1.2% | |
Organic growth | 0.5% | 3.2% | |
EBITDA | 86 | 76 | 13% |
Adjusted EBITDA1) | 66 | 56 | 17% |
EBITA | 57 | 45 | 26% |
EBITA margin | 9.0% | 6.8% | |
Operating EBITA2) | 58 | 48 | 21% |
Operating EBITA margin | 9.2% | 7.2% | |
Net working capital % | 15.3% | 19.2% | |
Free cash flow | -39 | -84 | |
Net debt1) | 107 | 424 | |
Backlog net revenues (billions) | 2.1 | 2.1 | |
Backlog organic growth (year-to-date) | 3% | 2% | |
| |||
REVENUES BY SEGMENT
(33% of net revenues)
in € millions | FIRST QUARTER | ||||
Period ended | 2021 | 2020 | Total | Organic | FX |
Gross revenues | 321 | 362 | -11% | ||
Net revenues | 209 | 226 | -7% | 3% | -10% |
Net revenues in
(49% of net revenues)
in € millions | FIRST QUARTER | ||||
Period ended | 2021 | 2020 | Total | Organic | FX |
Gross revenues | 359 | 352 | 2% | ||
Net revenues | 306 | 302 | 1% | 3% | -2% |
Net revenues in Continental Europe were in line with last year. Revenue decline in
Net revenues in the
Revenue in the
(12% of net revenues)
in € millions | FIRST QUARTER | ||||
Period ended | 2021 | 2020 | Total | Organic | FX |
Gross revenues | 84 | 88 | -5% | ||
Net revenues | 77 | 79 | -3% | -4% | 2% |
Organic net revenue in
CALLISONRTKL
(6% of net revenues)
in € millions | FIRST QUARTER | ||||
Period ended | 2021 | 2020 | Total | Organic | FX |
Gross revenues | 48 | 70 | -30% | ||
Net revenues | 39 | 51 | -23% | -18% | -5% |
Organic net revenues declined by 18%, affecting mainly retail and commercial sectors, which were severely impacted by COVID-19 with signs of recovery in Health Care.
OPERATING EBITA
Operating EBITA increased by 21% to €58 million (Q1 2020: €48 million), due to overall solid performance. The operating EBITA margin improved to 9.2% (Q1 2020: 7.2%); driven by margin improvement especially in
CASH FLOW AND WORKING CAPITAL
Free cash flow was -€39 million (Q1 2020: -€84million), due to the seasonal outflow and the partial repayment of COVID-19 permitted tax deferrals.
Net working capital as a percentage of gross revenues was 15.3% (Q1 2020: 19.2%) and days sales outstanding decreased to 78 days (Q1 2020: 95 days), resulting from our ongoing focus on timely cash collection.
Net debt of €107 million showed the seasonal increase during the quarter and was significantly lower than Q1 2020 (€424 million) due to the strong cash collection in the last 3 quarters.
ORDER INTAKE AND BACKLOG
Order intake was again strong at €693 million, especially in the
STRATEGIC PRIORITIES 2021-2023
The update of our strategy in
Financial objectives:
- Organic net revenue growth: mid-single digit
- Operating EBITA margin to exceed 10% of net revenues in 2023
- Net working capital as percentage of gross revenues: <15.0% and DSO (Days Sales Outstanding): <75 days
- Return on net working capital between 40%-50%
- Leverage: Net debt/EBITDA excluding leases between 1.0x and 2.0x
Non-financial objectives:
- Voluntary employee turnover: <10%
- Women in workforce: >40%
- Reduced emissions aligned with 1.5C science-based target initiative before 2030
- Carbon neutral operations: investing in high quality, certified abatement, and compensation programs from 2020
- Top-3 brand strength index in markets
Arcadis serves - Staff engagement: improving annually
FINANCIAL CALENDAR 2021
Annual General Meeting of Shareholders | |
First half year results | |
Trading update Q3 |
FOR FURTHER INFORMATION PLEASE CONTACT:
ARCADIS INVESTOR RELATIONS
Mobile: +31 6 51599483
E-mail: jurgen.pullens@arcadis.com
ANALYST MEETING
ABOUT
REGULATED INFORMATION
This press release contains information that qualifies or may qualify as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
FORWARD LOOKING STATEMENTS
Statements included in this press release that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward- looking statements. These statements are only predictions and are not guarantees. Actual events or the results of our operations could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are typically identified by the use of terms such as “may,” “will”, “should”, “expect”, “could”, “intend”, “plan”, “anticipate”, “estimate”, “believe”, “continue”, “predict”, “potential” or the negative of such terms and other comparable terminology. The forward-looking statements are based upon our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements.
Attachments
Arcadis Q1 2021 Trading update analyst presentation- Arcadis Trading Update Q1 2021
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