Vicat: 1H 2022 results

In an environment characterised by very strong inflation in its costs, Vicat’s first-half 2022 sales posted a substantial increase resulting from a large rise in selling prices, which offset to a significant degree the contraction in volumes delivered.  This performance reflected:
• a high basis for comparison in the first half of 2021, especially in France, India, Brazil and Kazakhstan;
• a steep decline in volumes delivered in Turkey to curb the impact of higher energy costs;
• the impact of non-recurring costs in the United States, France and India;
• the consequences of the geopolitical environment in Mali. 
 
Overall, the Group’s consolidated sales totalled €1,755 million, up from €1,560 million in the first six months of 2021, representing a +12.5% rise on a reported basis and a +14.5% increase at constant scope and exchange rates. 
The trend in consolidated sales on a reported basis reflects:
 • a scope effect of -1.4% (negative impact of -€25 million), resulting from the sale of the lightweight precast business in Switzerland, which was finalised on 30 June 2021; •
 an unfavourable currency effect of -0.4%, representing a negative impact of -€6 million over the first half owing to the depreciation of the Turkish lira and the Egyptian pound; compensated by that of the euro against other currencies;
• organic growth of +12.9% (+€227 million) driven by increases in selling prices across the regions. 
The Group’s operational sales totalled €1,779 million, up +12.1% on a reported basis and up +14.1% at constant scope and exchange rates. Each of the Group’s businesses contributed to this positive trend. In the Cement business, sales (€1,095 million) rose +17.3% at constant scope and exchange rates. The operational sales recorded by the Concrete & Aggregates business (€675 million) rose +14.8% at constant scope and exchange rates. Lastly, the Other Products & Services business (€226 million) posted a -9.0% decline in its sales on a reported basis given the sale of part of this division in Switzerland during the first half of 2021. At constant scope and exchange rates, its sales rose +8.2%. 
Vicat’s consolidated EBITDA came to €269 million in the first half of 2022, down -10.4% on a reported basis and down -9.8% at constant scope and exchange rates. The EBITDA margin was 15.3%, down -390 points from the unfavourably high basis of comparison in the first half of 2021. The trend in reported EBITDA reflects an unfavourable currency effect of -€1 million and an organic decline of -€29 million. It’s worth noting that despite this decline, operating profitability was again well above its pre-pandemic level (€229 million in the first half of 2019).