Alstom's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

Founded in 1928, Alstom is a French company operating in the transport sector, mainly railways. The group is present in over 60 countries. It has almost 38,900 employees worldwide. Its financial year 2020/21 covered the period from 1 April 2020 to 31 March 2021. The following is a detailed breakdown of the company's results for this financial year.

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Alstom's market cap, dividends, sales and earnings in 2020
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Alstom's sales in 2020/21

For the financial year 2020/21, the Alstom Group generated sales of €8.8 billion, compared with €8.2 billion in 2019/20. On a reported basis, this is a 7% year-on-year growth. On a like-for-like basis, it shows a moderate organic decline of 4% compared to the previous year.

This figure takes into account the two-month contribution of Bombardier Transportation in the amount of 1.12 billion euros. In addition, the organic decline in sales is mainly due to the impact of the Covid-19 health crisis (in particular the first containment) on the company's activity in Q1-2020/21.

Overall, the Group experienced a normal recovery in business in the second half of the year under review.

 

Details of turnover by group activity

For the full fiscal year 2020/21, the Rolling Stock business generated sales of €4.5 billion. 4.5 billion, down 1% on an organic basis. It also reflects the normalisation of industrial activities in the second half of the year and the ramp-up of major Rolling Stock projects.

1.56 billion for the financial year 2020/21. 1.56 billion for the financial year 2020/21, an increase of 3% on an organic basis. However, it reflects a moderate decline related to a delay in the installation of products on sites during the first containment. This division grew in the second half of this financial year.

1.74 billion in 2020/21, with organic growth of 2%. This good performance was achieved despite the fall in rail traffic, particularly in the first quarter.

For its part, the Systems business recorded a turnover of 947 million euros as at 31 March 2021. 947 million to 31 March 2021, with a sharp organic decline of 32%. This is mainly due to the anticipated deceleration of the systems project in Riyadh. This decrease is also explained by the conclusion of the Dubai contract and the completion of a contract in Panama.

 

Annual performance of other financial indicators

For the full year 2020/21, the Alstom Group recorded an adjusted operating profit of €645 million. 645 million, including the contribution of Bombardier Transportation and the unfavourable impact of the coronavirus health crisis. The operating margin was 7.3% at company level.

On Alstom's historical perimeter, it came out at 8%. For Bombardier Transportation's historical scope, the operating margin was 2.7%. For the financial year 2020/21, the rail equipment manufacturer generated an adjusted net profit (from continuing operations, group share) of €301 million, compared to €457 million a year earlier.

This indicator takes into account several exceptional items that are partly related to the acquisition of Bombardier Transportation. Net income from continuing operations (group share) was €240 million in 2020/21. It includes the effect of impairment losses on assets valued at the time of the purchase price allocation. These are estimated at € 61 million (after taxes).

 

About orders in 2020/21

For the full year 2020/21, Alstom's order intake reached €9.1 billion, compared to €9.9 billion at 31 March 2020. 9.9 billion at 31 March 2020. This represents an organic decline of 14% year-on-year. 664 million for the two-month contribution from Bombardier Transportation.

In an unprecedented context marked by the Covid-19 health crisis, this level of orders was achieved thanks to the strong recovery in commercial activities. It should be noted that these activities had been slowed down in H1-2020/21.

On Alstom's historical scope, the book-to-sales ratio was strong, above 1. On a company basis, this indicator reached 1.04 in 2020/21. At the end of the year, the group's order book stood at €74.5 billion.

 

Financial structure at the end of March 2021

The Alstom Group reported a strong balance sheet with respect to its financial position. For the financial year 2020/21, the company's free cash flow was negative at €703 million. On the historical Bombardier Transportation perimeter, it includes a negative contribution of 751 million euros. On the historical perimeter of Alstom, it benefited from a positive contribution of 48 million euros.

The cash outflow on Bombardier Transportation's historical perimeter is notably related to a number of items. These are the payment of suppliers, the unwinding of certain working capital management practices and a phasing effect on working capital.

On its historical perimeter, Alstom recorded a remarkable improvement in cash flow in the second half of 2020/21. This is illustrated in particular by an acceleration in deliveries. Also, order intake has grown strongly over this period.

At the end of the financial year 2020/21, the available cash and cash equivalents amounted to EUR 1,250 million. Also, the industrial group has €3,250 million of undrawn revolving credit facilities. Therefore, at the end of March 2021, cash resources reached 4,500 million euros.

As of 31 March 2021, the company had a net cash position (net debt) of EUR 899 million, compared to EUR 1,178 million a year earlier. This was mainly due to the company's free cash flow and the acquisition of Bombardier Transportation. At the end of the financial year 2020/21, the group's equity amounted to €9,117 million, compared to €3,328 million at the end of the financial year 2019/20.

 

Alstom's dividend and market capitalisation in 2020

The company's Annual General Meeting of Shareholders was held on 28 July 2021. During this meeting, Alstom's Board of Directors proposed the payment of a dividend of €0.25 per share for the financial year 2020/21. This corresponds to a payout ratio of 31% of adjusted net profit (Group share).

In addition, the Alstom Group is active in the equity markets. The company is listed on Euronext at the Paris Stock Exchange. Since 21 September 2020, it has been included in the CAC 40 stock market index. At the end of August 2020, its market capitalisation is €10.6 billion.

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