- Growth in organic sales: +7.9%
-
Strong contribution from the
United-States and emerging markets - Confirmation of the outlook for 2024
L’ISLE D’ABEAU,
Consolidated sales by geographical region in the first quarter of 2024:
(€ million) |
First-quarter 2024 |
First-quarter 2023 |
Change reported |
Change
|
|
270 |
297 |
-8.8% |
-8.8% |
|
92 |
81 |
+14.2% |
+9.7% |
|
222 |
198 |
+12.5% |
+12.4% |
|
120 |
112 |
+6.8% |
+8.9% |
Mediterranean |
104 |
104 |
+0.7% |
+58.9% |
|
101 |
108 |
-6.5% |
-5.5% |
Total |
911 |
899 |
+1.2% |
+7.9% |
*like-for-like, i.e. at constant scope and exchange rates |
|
|
|
|
“The Vicat Group enters 2024 with organic growth of nearly 8%, driven by dynamic markets in
This strong performance in the first quarter enables us to confirm our full-year outlook for growth in sales and operating profitability.
As previously announced, the 'From Low Carbon to Zero Carbon' initiative is taking shape with the progress of our two ultimate decarbonisation projects in Montalieu,
The Group’s sales rose +1.2% on a reported basis to €911 million in the first quarter. Organic growth in sales came to +7.9% at constant scope and exchange rates. This performance was achieved as a result of:
-
+4.1% growth in Cement volumes to 6.9 million tons, with trends varying from one Group market to another, including:
- a slowdown in European markets, especially inFrance , attributable to weakness in the residential sector;
- the increase in volumes inthe United States as the Ragland plant reached full capacity and volumes rebounded inCalifornia ;
- growth inAsia owing to the strong increase in volumes inIndia and a favourable base of comparison for volumes inKazakhstan ;
- dynamic trends in the Mediterranean region.
-
a +5.4% increase in concrete volumes to 2.2 million m3, especially in
the United States andTurkey ; -
a decrease in aggregate volumes of -6.8% to 5.1 million tons, notably in
France ; - a still resilient pricing environment in most markets with a favourable cost/price differential.
The Group’s sales were impacted by an unfavourable currency effect of –€60 million (–6.7%) chiefly arising from depreciation in the Turkish lira and Egyptian pound against the euro, which was very marginally offset by appreciation in the Swiss franc against the euro in the first quarter. There were no changes in the scope of consolidation during the year.
1. SALES BY GEOGRAPHICAL REGION
1.1.
(€ million) |
First-quarter 2024 |
First-quarter 2023 |
Change reported |
Change
|
Consolidated sales |
270 |
297 |
-8.8% |
-8.8% |
*like-for-like, i.e. at constant scope and exchange rates |
|
|
|
|
In the first quarter, sales in
The Cement business was affected by a further volume decline due to the contraction in the residential market. Nonetheless, the project to build the
The Concrete & Aggregates business was also affected by the volume contraction despite a more favourable base of comparison than in Cement. The downturn in Concrete & Aggregates volumes began back in the first quarter of 2023, while Cement volumes were resilient in the early part of that year. Concrete & Aggregates operational sales fell –10.0% in the first quarter.
Other Products & Services sales posted a small decline.
1.2
(€ million) |
First-quarter 2024 |
First-quarter 2023 |
Change reported |
Change
|
Consolidated sales |
92 |
81 |
+14.2% |
+9.7% |
*like-for-like, i.e. at constant scope and exchange rates |
In
In
The Cement business in
Concrete & Aggregates operational sales grew appreciably as a result of a price hike and favourable base of comparison effects over the period.
Other Products & Services operational sales posted a strong increase thanks to an improvement in the product mix of the precast business (
In
1.3
(€ million) |
First-quarter 2024 |
First-quarter 2023 |
Change reported |
Change
|
Consolidated sales |
222 |
198 |
+12.5% |
+12.4% |
*like-for-like, i.e. at constant scope and exchange rates |
Sales in the
In the
Concrete sales rose strongly in
In
The Group’s Cement business slowed down with volumes and prices falling in the first quarter. The commercial environment in the Mid-West region where Ciplan operates has worsened as a result of fiercer competition.
The Concrete & Aggregates business showed greater resilience, with aggregates and concrete volumes declining, but selling prices moving higher.
1.4
(€ million) |
First-quarter 2024 |
First-quarter 2023 |
Change reported |
Change
|
Consolidated sales |
120 |
112 |
+6.8% |
+8.9% |
*like-for-like, i.e. at constant scope and exchange rates |
The Group’s business in
Business grew in
Sales in
1.5 Mediterranean (
(€ million) |
First-quarter 2024 |
First-quarter 2023 |
Change reported |
Change
|
Consolidated sales |
104 |
104 |
+0.7% |
+58.9% |
*like-for-like, i.e. at constant scope and exchange rates |
The Group’s sales trends in the Mediterranean region were positive, with volume growth in
Despite a persistently hyperinflationary macroeconomic environment, the Cement business in
The Concrete & Aggregates business in
The Cement business in
1.6
(€ million) |
First-quarter 2024 |
First-quarter 2023 |
Change reported |
Change
|
Consolidated sales |
101 |
108 |
-6.5% |
-5.5% |
*like-for-like, i.e. at constant scope and exchange rates |
In the first quarter, the Group’s business in
The Cement business in
Aggregates operational sales in
Cement sales in
Cement operational sales rose +8.6% in
2. OUTLOOK FOR 2024
In 2024, the Group expects a continued increase in its sales, supported by growth in
Based on the significant increase in the first quarter, the Group is reiterating the EBITDA trend expected over the year as a whole.
EBITDA generated by the Group in 2024 should be higher than the 2023 level. |
This objective takes into account further operational savings at the Ragland plant and an easing in energy cost inflation over the period, with a favourable base of comparison effect in the first half of the year.
In 2024, the Group’s capex is likely to total around €325 million following delays to investments in a new kiln in
The increase in EBITDA, tight grip on the working capital requirement and disciplined investment approach will pave the way for a further decrease in the Group’s net debt.
As a result, the Group has set a target of lowering its leverage to below 1.3x by year-end 2025.
Outlook by country:
In
In
In the
In a stabilising market in
In
In
In
In
In
3. CLIMATE PERFORMANCE
The Group has accelerated its decarbonisation roadmap and its net-zero carbon goal with the launch of the “Low carbon to Zero carbon” initiative.
This programme involves two final decarbonisation projects – to capture carbon by storing it or using it to manufacture synthetic fuels at the Montalieu (
The “VAIA” project at Montalieu, designed to capture and store 1.2 million tons of CO2 per year, is advancing. Talks are underway with the French authorities and with the
In
4. HIGHLIGHTS
29 February 2024 – Vicat’s involvement in the
7 March 2024 – Vicat joins the SBF 120 index
16 April 2024 – Vicat arranged a €50 million bilateral line based on the Sustainability Linked Loan format with Bank of America, a new banking counterparty
PRESENTATION MEETING AND CONFERENCE CALL
To accompany this publication, the
To take part in the conference call live, dial in on one of the following numbers:
The conference call will also be livestreamed from the
The presentation supporting the event will be available from
NEXT EVENT
First-half 2024 results after the close on
ABOUT THE VICAT GROUP
For 170 years,
DISCLAIMER
- In this press release, and unless indicated otherwise, all changes are stated on a year-on-year basis (2023/2022), and at constant scope and exchange rates.
- The alternative performance measures (APMs), such as “at constant scope and exchange rates”, “operational sales”, “EBITDA”, “recurring EBIT”, “net debt” and “leverage” are defined in the appendix to this press release.
- This press release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as described in the Company’s Universal Registration Document on its website (www.vicat.fr). These statements do not reflect the future performance of the Company, which may differ significantly. The Company does not undertake to provide updates of these statements.
More comprehensive information about
DEFINITION OF ALTERNATIVE PERFORMANCE MEASURES (APMS):
- Performance at constant scope and exchange rates is used to determine the organic growth trend in P&L items between two periods and to compare them by eliminating the impact of exchange rate fluctuations and changes in the scope of consolidation. It is calculated by applying exchange rates and the scope of consolidation from the prior period to figures for the current period.
- A geographical (or a business) segment’s operational sales are the sales posted by the geographical (or business) segment in question less intra-region (or intra-segment) sales.
- EBITDA (earnings before interest, tax, depreciation and amortisation): sales less purchases used, staff costs and taxes adjusted for other income and expenses on ongoing business.
- Recurring EBIT: (earnings before interest and tax): EBITDA less net depreciation, amortisation, additions to provisions and impairment losses on ongoing business.
- Free cash flow: net operating cash flow after deducting capital expenditure net of disposals and financial investments and before the dividend payment.
- Net debt represents gross debt (consisting of the outstanding amount of borrowings from investors and credit institutions, residual financial liabilities under finance leases, any other borrowings and financial liabilities excluding options to sell and bank overdrafts), net of cash and cash equivalents, including remeasured hedging derivatives and debt.
- Leverage is a ratio based on a company’s profitability, calculated as net debt/consolidated EBITDA.
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INVESTOR RELATIONS:
Tel +33 (0)6 73 25 98 06
pierre.pedrosa@vicat.fr
PRESS:
Tel +33 (0)7 61 74 86 52
raphael.hinninger@vicat.fr
Source: