| Press release |
| 26.10.2018 |
| |
Solid performance in Q3 2018 with +10.4% organic growth
- Q3 revenues of € 731.1 m (+37.3% reported growth, 10.4% organic growth and +9.7% economic growth vs. Q3 2017)
- Performance fueled notably by strong growth in our top markets: France, North America, Germany, Iberia, Italy and the UK
- Restoration of Aricent margin materializing. Integration plan on track
- Good momentum and tailwinds across industries, good visibility through clients engagement
Altran delivered consolidated revenues of €731.1m in the third quarter of 2018, up +37.3% year on year, with an organic1 growth of +10.4% and an economic2 growth of +9.7%. Reported revenues benefited from Aricent's contribution of $163.5m / €139.5m, +2% compared to Q3 2017.
Dominique Cerutti, Chairman and Chief Executive Officer of the Altran group, declared: "Altran achieved solid growth over the third quarter, reflecting both strong performance in our top countries and tailwinds across our diversified industry portfolio. The Aricent integration plan is on track, the margin improvement is materializing and we are seeing good client traction on common engagements."
Geographic breakdown of Q3 2018 performance
- France (31% of total revenues): Accelerated growth with +8.4% organic growth, resulting from solid recruitment campaign and a continued focus on project based and client-transformation-led business.
- Europe (42% of total revenues): Germany posted strong growth this quarter (with +20.8% organic growth) due to some large projects reaching peak level, significant improvement in invoicing ratio and a favorable third quarter vacation effect. In the UK, Altran is benefiting from strong traction which again allowed a solid performance with 12.4% of organic growth in Q3. Italy and Iberia continue to post strong growth with organic growth of 7.9% and 12.5% respectively. In Belgium and the Netherlands, the new management is focused on restoring growth.
- Americas (26% of revenues): +24.8% organic growth as the consolidation of our build-up bears its fruits and notably with an hyper growth in our software engineering business. Aricent revenues of $163.5m are consolidated in this geography, bolstering reported growth.
- Asia (1% of revenues): 2.0% organic growth.
| (in €m) | Q3 2018 | Reported Growth% | Organic Growth%1 | Economic Growth%2 |
| FRANCE | 230.1 | 7.8% | 8.4% | 6.8% |
| EUROPE | 302.2 | 9.3% | 10.4% | 9.8% |
| Germany & Austria | 79.1 | 18.2% | 20.8% | 21.0% |
| Iberia | 61.3 | 12.5% | 12.5% | 12.5% |
| Italy | 53.6 | 7.8% | 7.9% | 7.9% |
| UK | 49.9 | 14.7% | 12.4% | 12.4% |
| Belgium & Netherlands | 37.5 | -4.6% | -4.6% | -5.1% |
| Scandinavia | 12.1 | -16.6% | -2.2% | -1.5% |
| Switzerland | 8.7 | 8.7% | 10.6% | 10.5% |
| AMERICAS | 189.2 | 446.8% | 24.8% | 24.3% |
| ASIA | 9.6 | 21.5% | 2.0% | 2.0% |
| TOTAL | 731.1 | 37.3% | 10.4% | 9.7% |
Trends in staff levels
As of 30 September 2018, total headcount of the Altran group was 45,812 employees compared with 33,665 at 31 December 2017 and 32,848 at 30 September 2017.
Outlook
We remain confident with our execution plan, in the context of this encouraging third quarter momentum, the ongoing progress on the restoration of Aricent's margin and the tailwinds observed in the ER&D services market.
Financial calendar
28 February 2019: Full year results - 2018
| A conference call for investors will be held on Friday October 26 at 9:00 am Paris time (CET) Telephone numbers: +33172727403 or +442071943759 Confirmation Code: 63622273# |
About Altran
Altran ranks as the undisputed global leader in Engineering and R&D services (ER&D), following its acquisition of Aricent. The company offers clients an unmatched value proposition to address their transformation and innovation needs. Altran works alongside its clients, from initial concept through industrialization, to invent the products and services of tomorrow. For over 30 years, the company has provided expertise in aerospace, automotive, defense, energy, finance, life sciences, railway and telecommunications. The Aricent acquisition extends this leadership to semiconductors, digital experience and design innovation. Combined, Altran and Aricent generated revenues of €2.9 billion in 2017, with some 45,000 employees in more than 30 countries. www.altran.com
Contacts
Stéphanie Bia
Group Vice-President Investor Relations
Tel: + 33 (0)1 46 41 72 01
stephanie.bia@altran.com
Marine Boulot
Group Vice-President Communications
Tel: + 33 (0)1 46 41 71 73
marine.boulot@altran.com
Follow us on Twitter: @Altran
DISCLAIMER
This press release contains forward-looking statements (as defined in the United States Private Securities Litigation Reform Act, as amended) based upon current management expectations. Numerous risks, uncertainties and other factors (including, risks relating to: government legislation affecting our businesses; competition; our ability to manage rapid technological change in the industries in which we compete; litigation risks, labour issues; unanticipated costs from disposals or restructuring) may cause actual results to differ materially from those anticipated, projected or implied in or by the forward-looking statements. Many of the factors that will determine our future results are beyond our ability to control or predict. These forward-looking statements are subject to risks and uncertainties and, therefore, actual results may differ materially from our forward-looking statements. You should not place undue reliance on forward-looking statements which reflect our views only as of the date of this presentation. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ALTRAN TECHNOLOGIES via Globenewswire
Source(s) : ALTRAN TECHNOLOGIES
