- Sales of €3.7 billion (+16% vs 2016), of which 35% on international markets
- Orders intake of €4 billion
- EBITA of €172.7 million, 1.5-point increase in operating profit to 4.7%
- Promising perspectives for 2018
Main consolidated results
|(in millions of euros, IFRS standards)||2017||2016||2015|
|Operating profit (EBITA/sales) in %||4.7%||3.2%||2.1%|
|Consolidated net income, group share||142.2||94.3||68.4|
Orders intake: €4 billion, Book-to-Bill ratio of 1.08Orders taken over the 2017 reporting period represent €4,001 million. The competitiveness of the offers has contributed to the average order-book margin rate, whose total stood at €11,912 million at the end of 2017. The orders taken in France and on international markets over the 2017 reporting period have benefitted all sectors, from new-build programs to services and equipment. The main contract awards relate to the intermediate-size frigates program (FTI), the PROSUB submarine program for the Brazilian Navy, the renovation of La Fayette-class frigates, the nuclear attack submarine program and the Australian submarine program. Measured across the three years 2015 to 2017, the Book-to-Bill ratio (orders taken over sales), which is a measure of the order-book renewal rate, accounts for 1.02 (1.08 for 2017 alone).
Activity: increase in revenues of close to 16%, 35% for international salesThe consolidated sales are €3,698 million, of which 35% earned on the international markets. The increase of 15.9% with respect to 2016 was supported by the major French new-build (principally FREMM multi-mission frigates and Barracuda nuclear attack submarines) and service programs, including the mid-life modernisation of the Charles de Gaulle aircraft carrier, as well as the maintenance programs for the nuclear attack submarines and nuclear ballistic missile submarines. On international markets, Brazil, Egypt, Saudi Arabia and Australia were powerful growth drivers for the activity of the group.
Profitability: significant increase in EBITA and operating profitEBITA (earnings before interest, taxes and amortisation) is €172.7 million. Its significant increase, greater than that for revenues, translates into a further improvement of operating margin, which increased from 3.2% in 2016 to 4.7% in 2017. This solid progression, which has been ongoing for three years now, is the result of the operational improvement of all naval programs and the effectiveness of the actions undertaken in the frame of the industrial and social pact. These results were nevertheless constrained by the impairment of the asset value of our subsidiary, Naval Energies, faced with delays and operational difficulties throughout 2017. Consolidated net income, group share accounts for €142.2 million, thereby increasing of almost €50 million compared to 2016.
Perspectives: an increase in recruitment and investments; continuation of cost-control effortsThe gains achieved through the industrial and social pact allow Naval Group to invest, which is the prerequisite for the growth of the group. In 2017, Naval Group recruited over 1,000 new employees and this trend is set to continue, particularly thanks to Naval Campus initiatives in terms of vocational training for workers and technicians. Furthermore, Naval Group accelerates its investments in self-financing research and development, information systems, infrastructures and industrial and research tools and equipment. Throughout 2018, Naval Group will pursue its continuous competitiveness improvement for its domestic and international offers and ongoing programs, which are subjected to deadlines and cost control. The improvement in operating profitability is expected to continue in 2018 while the consolidated net income - group share should be increasing by 10%.
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