SNCF reports H1 profit as rail demand swells

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SNCF Group, the parent company of French national train operator SNCF Voyageurs, has reported “sustained growth” for the first half of 2023 despite a “difficult economic and social context”.

The group, which also includes public transport operator Keolis and logistics company Geodis, saw revenue for the first six months of 2023 increase 2.2 per cent year-on-year to €20.7 billion and posted a net profit of €158 million.

In a statement posted on Friday (28 July) SNCF Group reported rail passenger numbers increased 11.3 per cent year on year, including a 21 per cent increase on its long-distance TGV services. Accelerated rail demand in France echoes similar growth in Germany as Deutsche Bahn also reported a “boom” in rail travel in its H1 earnings report this week.

According to the group, the increase in rail passenger traffic confirms the “attractiveness” of rail as an alternative to air in a post-pandemic context.

Keolis, which operates bus, tram and coach networks in France as well as in parts of Sweden, the Netherlands and the US, also posted a 7.3 per cent increase in demand.

“Despite a still high level of inflation and the impact on the accounts of social movements in the first quarter, the group is generating an encouraging performance: net income and free cash flow are positive, reflecting the relevance of its strategy,” the group said in a statement.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached €2.8 billion, however the group said nationwide strikes in April linked to pension reforms “significantly impacted” performance, wiping €500m from revenue estimates and €400m from EBITDA.

SNCF also said it was able to absorb the “significant” impact of inflation through a “proactive commercial policy” and that its positive H1 result will allow it “to continue to develop in the service of sustainable mobility”.

The group added that it will continue to invest in the “regeneration and modernisation” of train stations and the rail network in France, while also making investments to become a solar energy producer.

SNCF Group has been awarded platinum status this year by EcoVadis, the independent corporate social responsibility (CSR) rating agency. The group ranks among the top 1 per cent of companies assessed.

source: BTN Europe