Financial performance
The consolidated Group revenue for the 2023 financial year amounted to € 17,666.54 million. As many of the acquisitions involved large-scale projects realised under a joint venture arrangement, the revenue growth, at 4%, was less pronounced than the 8% growth in output. This effect is also reflected in the ratio of revenue to output, which fell year-on-year from 96% to 92%. The operating segments North + West contributed 41%, South + East 42% and International + Special Divisions 17% to the revenue.
The changes in inventories mainly involve real estate project developments. Successful sales were more than compensated for by new projects. The own work capitalised fell at a low level due to the completion of several corporate locations. The total of expenses for construction materials, consumables and services used and employee expense, expressed in relation to the revenue, remained almost constant at 90% (2022: 89%) – despite the at times high inflation.
Expenses
€ mn | 2023 | 2022 | Δ % |
Construction materials, consumables and services used | 11,275.08 | 10,988.65 | 3 |
Employee benefits expense | 4,540.90 | 4,133.73 | 10 |
Other operating expenses | 1,086.60 | 1,013.28 | 7 |
Depreciation and amortisation expense | 538.12 | 550.81 | -2 |
The earnings from equity-accounted investments increased significantly to € 144.13 million in the reporting period, mainly thanks to higher earnings from joint ventures. The net income from investments, which comprises the dividends and expenses of many smaller companies and financial investments, fell slightly compared to the previous year.
Development of EBITDA and EBITDA margin
In total, the earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 13% to € 1,418.31 million, continuing the trend of exceeding the € 1.0 billion mark established in recent years. As a result, the EBITDA margin showed a year-on-year increase from 7.4% to 8.0%. The depreciation and amortisation expense fell slightly by 2.3% to € 538.12 million.
The earnings before interest and taxes (EBIT) increased significantly by 25% to € 880.20 million in 2023. The EBIT margin grew to 5.0% (2022: 4.2%), thus exceeding the original forecast. This development is due to positive earnings effects resulting from the strong market positions in the North + West segment.
The net interest income increased to € 44.13 million (2022: € 10.7 million). The strong year-on-year growth is primarily due to higher interest income – caused by the higher interest rate level and STRABAG SE’s net cash position. The exchange rate result included in this figure turned negative in 2023 at € -15.90 million (2022: € 3.20 million) due to negative exchange rate differences.
31.5%
Effective tax rate
On balance, the earnings before taxes totalled € 924.32 million. The income tax rate, at 31.5%, was slightly lower than in the previous year. The net income amounted to € 633.39 million, which corresponds to an increase of 32% compared to 2022.
€ 6.30
Earnings per share
The earnings owed to minority shareholders totalled € 2.89 million, compared to € 7.68 million in the previous year. The net income after minorities increased by 33% to € 630.51 million, the highest figure in the history of STRABAG SE. The earnings per share amounted to € 6.30 (2022: € 4.60).
Development of ROCE
The return on capital employed (ROCE) rose from 9.2% in the previous year to 12.2%. This is the highest value in the history of STRABAG SE.