(AOF) – In the first quarter of 2024, current operating income from Bouygues’ activities stood at 26 million euros, an increase of 17 million euros over one year. This improvement is largely driven by Equans, whose ROCA increased by 35 million euros over the period. The ROCA of Bouygues Immobilier fell by 26 million euros over the period, due to the sharp drop in its activity, the adaptation measures being gradually put in place and having their effects. The group’s turnover for this quarter reached 12.3 billion euros.
Turnover is up 3% compared to the first quarter of 2023. This increase is mainly driven by Equans and Bouygues Construction.
Over the first three months of 2024, its net loss now amounts to 146 million euros compared to a loss of 134 million a year ago for the same period.
Net financial debt stands at 7.7 billion euros. It improves by almost 1.1 billion euros compared to the end of March 2023, with a net debt ratio3 at 55% (compared to 64% at the end of March 2023).
In 2024, Equans will continue to improve its results, in accordance with its Perform strategic plan. Bouygues Immobilier will continue to face a difficult market environment, offering little visibility on the recovery timetable.
In an uncertain economic and geopolitical environment, and after a year of strong growth, Bouygues is targeting a slight increase in turnover and current operating income from activities (ROCA) in 2024 compared to 2023.
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Double penalty for the sector
The French Building Federation (FFB) recently warned of the collapse of the new housing market. Over the first eight months of 2022, sales in the new home market in the diffuse sector collapsed by 26.8% year-on-year. As for sales of new homes in the grouped sector, sales to individuals fell by 17.3% year-on-year in the first half, while sales to institutions fell by 23%. The trend is the same for collective housing sales, down 9.8%.
These bad trends are accompanied by a decline in public investments, while PGE reimbursements begin. Due to a lack of visibility, local authorities prefer to put certain projects on hold. They also have to face a drop in their resources and a significant increase in energy and works costs. However, the largest investments are generally made during the third and fourth years of mandate of communities, that is to say in 2023 and 2024. This therefore represents a significant shortfall for the sector.