DOMINION, the sustainable services and end-to-end projects company, has presented the results for the first six months of the year with an organic growth of 4.7% in sales, reaching a total of €571 M.
The company claims to be in the middle of an investment process to complete the strategic transformation announced during the presentation of its 2023-26 Plan. It seeks to divest from less efficient activities and bet on those that position DOMINION as a benchmark in the field of sustainability and that provide higher profitability margins.
This process entails some investments that the company has addressed during this first half of the year. The outcome is already visible and have led the company to reach an EBITDA of €71M, which represents a percentage of sales of 12.5%. It is the third quarter that DOMINION surpasses the barrier of 12 percentage points, improving its operating profitability.
For its CEO, Mikel Barandiaran “As we announced in the presentation of our Strategic Plan until 2026, we continue to make progress in simplifying our businesses and betting on activities with greater added value that allow us to be a benchmark in 360 Sustainability. Despite the increase in investment requirements this year, the initial results are already visible, with a significant increase – above objectives – in the margins of our services and projects”.
Contribution margins of its two segments
Sustainable Services reached a turnover of €401M this semester despite the business restructuring that occurred in this segment. Its contribution margin on sales exceeds the 12% thanks to the good performance of its Environmental Services area.
The 360º Projects segment achieved a turnover of €163M during this period and registers a contribution margin on sales of 18.8%. The organic growth of the segment has been more moderate than in previous quarters. The company hopes to return to the previous path in the coming months, after finding a European partner to begin the execution of new renewable parks in Spain and Italy.
DOMINION has just inaugurated La Victoria photovoltaic plant in the Dominican Republic, a country where it is about to launch two more projects: Washington Capital 2 and 3. In the last few months, the company has also completed the definition phase of a hydroelectric project in Central America, which will contribute to the future sales of this segment.
Dividend payout
As part of its shareholder remuneration strategy, on July 9th, the company distributed 15 million euros among its shareholders, which represents a dividend yield of 3%.
