SNCF: profit of 1.3 billion euros in 2023, down compared to 2022

Europe 1 with AFP / Photo credit: FIORA GARENZI / HANS LUCAS / HANS LUCAS VIA AFP 6:36 p.m., February 28, 2024

SNCF presented on Wednesday positive financial results in 2023 for the third consecutive year with a profit of 1.3 billion euros, however down compared to 2022 (2.4 billion euros), a record year for the group railway.

Its turnover stagnated (+0.7%) at 41.8 billion euros, despite an unprecedented enthusiasm for the train, due to the increase in its costs, strikes against pension reform and a sharp drop in the activity of the logistician Geodis.

TGVs are popular

Record attendance and unprecedented occupancy rate for TGVs: the activity of SNCF Voyageurs, the company responsible for running the trains, boosted the results of the SNCF.

The turnover of this activity jumped by 10.4% to 19.2 billion euros and represents almost half of the total turnover of the public railway group.

“The efforts are paying off,” rejoiced the group’s CEO Jean-Pierre Farandou during the press conference to present the results.

Sales of TGV and Intercity trains are up 13.8%, to 9.7 billion euros, with a record attendance of 156 million travelers on high speed in France and Europe.

The passenger transport activity generally performed well since the public transport operator Keolis also saw its turnover increase significantly, reaching 7 billion euros (+6.6%).

“On an operational level, I consider that the performance is comparable” to 2022, welcomed the group’s financial director, Laurent Trevisani.

SNCF attributes the drop in its results to smaller disposals - 700 million euros less - and to a provision of 500 million euros for salary increases

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 SNCF strike: what cost for the railway company?

The public company, a large consumer of electricity, was also penalized by the rise in energy prices.

For its high-speed activity, its costs increased by 14% while at the same time, the average increase in TGV fares was only 5%.

The strikes in the first half against the pension reform also cost it 350 million euros in margin, she says.

Other bad news is the sharp decline in turnover of its logistics branch Geodis.

The latter had enabled the SNCF to face the crisis of the Covid-19 pandemic thanks to exceptional turnover.

Freight rates, which had reached unprecedented levels due to the disruption of supply chains and strong demand in 2021 and 2022, have since returned to normal.

Geodis therefore saw its turnover drop by 21.6% to stand at 11.6 billion euros.