Indra said Tuesday that net profit was €55 million in the first six months of 2021, as compared to €-75 million for teh same period last year, and €34 million in the first half of 2019. (+63%). First half 2021 revenues were up +11.6% in local currency versus the same period last year (+9% in reported terms) and +10% in local currency and compared to the first six months in 2019 (+5% in reported terms), accelerating its growth until +18% in local currency in the second quarter this year versus the second quarter in 2020.
Cristina Ruiz and Ignacio Mataix, Chief Executive Officers of Indra: “The results of the first half of 2021 already confirm the clear overtaking of revenues and direct margin levels of 2019, prior to the pandemic, both in Minsait and in Transport & Defence, and all this despite the fact that certain uncertainties regarding macroeconomic developments remain due to Covid, with the economic recovery still in its initial phase in the main countries where we operate.”
In addition, revenues in the second quarter of 2021 showed an evident acceleration on its growth compared to the first quarter of the year, which already reached double digits in 2Q21, as a result of the speed up of the conversion of the backlog into revenues. It is also worth noting the improvement of the margins registered in the quarter, boosted by the costs reduction plan implemented last year, especially in Minsait’s EBIT margin, which reached 6.1% in 2Q21.
As a result, net profit in the first half of 2021 was already 63% higher than in 2019, before the crisis. Cash generation (excluding €-25m of the workforce transformation plan) stood at €-25m in the first half of 2021 compared to €-88m in the last year same period, which allows us to continue reducing leverage at a fast pace.
Lastly, commercial activity continued to evolve positively, with the backlog reaching a new record high in Indra’s history.
All in all, although there are still some uncertainties about the containment of the pandemic, the good performance of the first half of the year allows us to increase our annual EBIT and Cash Generation targets for 2021”.