Arcadis Trading Update Q1 2019
Continued progress on key strategic metrics
Continued solid results in majority of the business, particularly strong performance in North America
Good progress made in the improvement areas
Operating EBITA margin improved to 7.5% (Q1 2018: 7.2%)
Organic net revenue growth of 2% to €628 million (gross revenues: €829 million)
EBITDA increased by 20% to €56 million (Q1 2018: €47 million)
Net working capital improved to 17.4% (Q1 2018: 19.5%)
Net debt reduced to €409 million (Q1 2018: €474 million)
Organic backlog growth at 4% quarter-to-date
Amsterdam, 18 April 2019 - Arcadis (EURONEXT: ARCAD), the leading global Design & Consultancy organization for natural and built assets, reports 2% organic increase in net revenues for the first quarter of 2019. Operating EBITA margin improved to 7.5% (Q1 2018: 7.2%); driven by continued solid results in the majority of the business and god progress made in the improvement areas.
Peter Oosterveer, CEO Arcadis comments: "I am pleased with the profitable growth, margin improvement and disciplined working capital management. These efforts contributed to a further strengthening of the balance sheet. The performance in the majority of our business, and especially North America, continues to be solid and we progressed our actions to further improve our performance in Asia, the Middle East and Latin America.
Good progress was made in the restructuring of the Asian business, with the completion of the simplified organizational structure and the planned exit from underperforming markets. Our continued selectivity in the Middle East positively contributed to our margin percentage and reduced net working capital. In Latin America our earlier actions, and a slightly improved business environment, led to a profitable quarter.
As part of our broader innovation and growth agenda we strengthened our digital offerings by acquiring a majority stake in EAMS Group, an enterprise asset management company. It follows the launch of our Digital Innovation Hub in Amsterdam and the City of 2030 innovation accelerator in March of this year.
Our strategic priorities for 2019 remain clear. Based on the progress made in the first quarter we are confident that our efforts will further contribute to the targets set for 2020."