28.07.2022 18:07
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).
• 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).
The use of materials published on the site is allowed only with the reference to the source (the journal «Cement and its application») and a hyperlink to the quoted material.
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