Financial expert analyzes: Despite increasing revenues in 2023, Vinci expects lower growth in 2024

Financial expert analyzes: Despite increasing revenues in 2023, Vinci expects lower growth in 2024

According to a report by www.airliners.de, the French infrastructure group Vinci has recorded an unexpectedly strong increase in operating profit and sales for the full year 2023. Despite this positive development, the company remained cautious about revenue growth in 2024. For 2024, Vinci still expects net income in line with 2023 and an increase in total revenue. However, the company forecasts lower growth than last year, mainly due to the introduction of a new transport tax in France.

This cautious forecast from Vinci for 2024 may have various implications. On the one hand, the new transport tax in France could affect the company's profitability, as it is expected to generate annual revenue of an estimated 600 million euros. This would result in an additional charge of 260 million euros, based on 2022 figures. The prospect of a lower growth rate in 2024 could also unsettle investors and shareholders and impact the company's share prices.

In addition, the measures to contain the uncertain geopolitical and macroeconomic situation that Vinci referred to could lead to another challenge. Uncertainties in these areas could result in fluctuations in the Company's revenues and adversely affect its future prospects.

However, the positive development of operating profit and sales in 2023 shows a solid performance from Vinci. The company operates airports such as London-Gatwick and Lyon-Saint-Exupéry, whose traffic volumes have continued to recover and were slightly above pre-pandemic levels at the end of the year. This could indicate long-term recovery opportunities, despite the challenges in 2024.

Overall, it is important that Vinci develops strategies to address potential economic and regulatory challenges in order to continue to deliver robust performance and ensure long-term growth.