Vicat: full-year turnover eases

Vicat: full-year turnover eases
Published: 11 March 2014


Turnover at Vicat eased by 0.3 per cent in 2013 to EUR2286m and EBITDA came off by 2.4 per cent to EUR427m, while at unchanged parameters they would have risen by 2.9 per cent and 0.3 per cent respectively.

The trading profit emerged 3.7 per cent lower at EUR234m. The net financial charge rose by 31.2 per cent as the debt of the Indian subsidiaries Vicat Sagar and Gulbarga Power was no longer being capitalised. After an increase in the effective tax charge from 29.1 per cent to 32.4 per cent, mainly related to France, in part compensated for by a lower minorities' charge, the net attributable profit emerged 6.8 per cent lower at EUR120m.

Net debt at the end of the year was 6.9 per cent lower at EUR1,065m and represented 46.5 per cent of total shareholders' funds, which were 5.1 per cent lower at EUR2,292m. Capital investment year was reduced by 39.4 per cent to EUR174m, while and net spending on acquisitions increased by 12.5 per cent to EUR18m.

In terms of activity split, turnover in cement, being 3.2 per cent lower at EUR1333m accounted for 50.6 per cent of the total, with cement deliveries being 0.9 per cent ahead at 18.05Mt and the EBITDA declined by 6.5 per cent to EUR314m. The concrete and aggregates operations turned over 5.2 per cent more ahead at EUR899m and the EBITDA rose by 18 per cent to EUR80m as volumes improved by 5.8 per cent to 22.77Mt in aggregates and by 7.5 per cent to 8.53m m³ in ready-mixed concrete. Other products and services produced a marginal 0.1 per cent reduction in turnover to EUR400m while the EBITDA eased by 2.9 per cent to EUR33m.

France
The French turnover declined by 2.7 per cent to EUR856m while the EBITDA came down 2.2 per cent to EUR159m. The lower numbers reflect more difficult economic and climatic conditions than in the previous year. Cement deliveries declined by almost six per cent and the turnover by 7.6 per cent while the average price was stable, though the mix was unfavourable. Turnover in aggregates and concrete recovered 0.5 per cent as volumes improved by five per cent in aggregates but eased by almost one per cent in ready-mixed concrete. Other products and services saw a 5.6 per cent reduction in turnover but the EBITDA as just one per cent lower.


Rest of Europe
In the rest of Europe, turnover improved by four per cent to EUR427m, of which Switzerland represented EUR407m, and the EBITDA rose by nine per cent to EUR114m. The Swiss cement turnover reached EUR113m, helped by higher volumes, but a slightly lower average price, while the EBITDA improved by 12 per cent. The turnover in Swiss concrete and aggregates rose by 13.1 per cent, with prices being slightly ahead in ready-mixed concrete but lower in aggregates because of an inferior product mix, leading to an overall stable EBITDA margin. The other Swiss activities registered improvements of 2.2 per cent in sales and 1.8 per cent in turnover. The Italian turnover declined by 18.1 per cent, but the EBITDA staged a 53.2 per cent recovery.


US
The United States turnover improved by a further 12.6 per cent to EUR221m, in spite of a weaker US dollar, and it no longer lost money at the EBITDA but made a EUR5m profit and the trading loss was more than halved to EUR17m. Cement volumes rose by a further five per cent and the turnover improved by 6.3 per cent. Turnover in ready-mixed concrete improved by 21 per cent, with volumes increasing by more than 16 per cent as both California and the Southeast moved ahead, resulting in the EBITDA being a positive EUR3m rather than a EUR2m loss.


Turkey
The Turkish turnover advanced by 16.5 per cent to EUR235m and the EBITDA showed a similar percentage increase, but only on a constant currency basis. In cement, the turnover improved by 16.7 per cent, with cement deliveries advancing by four per cent and prices rising, leading to a 19.2 per cent increase in EBITDA. In aggregates and concrete, the turnover rose by 16.3 per cent as aggregates volumes were stable and ready-mixed concrete deliveries rose by eight per cent. The EBITDA improved by 6.2 per cent while the margin was broadly stable.

India
In India, turnover rose by 12.7 per cent to EUR155m and the cement volume rose by almost 28 per cent, helped by the new Vicar Sagar plant, taking the volume to in excess of 3.2Mt. Increased competitive pressures and higher electricity and transport costs led to a 62.5 per cent drop in the EBITDA. In Kazakhstan volumes improved by almost five per cent, taking production to in excess of 1Mt. The turnover rose by 14.3 per cent to EUR71m and the EBITDA jumped by 99.2 per cent as the margin rose from 20 per cent to 34.9 per cent.


Africa & Middle East
The African and Middle Eastern turnover declined by a further 11.6 per cent to EUR322m and the EBITDA fell by 24.9 per cent to EUR63m, while the trading profit dropped by another 42.7 per cent to EUR26m. In Egypt, turnover declined by 14.1 per cent as shipments fell by some 27 per cent, with poor security leading to lost production and the EBITDA fell by 46.3 per cent. The West African turnover declined by 4.7 per cent as prices stabilised and volumes declined by 2.1 per cent. The average price achieved across the region declined by 13.4 per cent in the year.