Vicat shows good profit growth in the USA, India and Africa

Vicat’s turnover increased by six per cent in 2014 to EUR2422.7m and the EBITDA emerged 3.6 per cent ahead at EUR442m, while at unchanged parameters the increases would have been eight and seven per cent respectively.

The trading profit rose by 12.3 per cent to EUR263.1m.The net financial charge was 8.2 per cent higher at EUR47.6m and after a slightly higher contribution from associates the pre-tax profit improved by 12.5 per cent to EUR203m. After a lower effective tax charge of 29.3 per cent and a higher minorities charge, the net attributable profit emerged eight per cent higher at EUR128.5m. The net debt at the end of the year was 4.0 per cent lower at EUR1022m and represented 41.6 per cent of total shareholders' funds, compared with 46.5 per cent a year earlier. Capital investment year was further reduced by 10.3 per cent to EUR156m, while and net spending on acquisitions rose from EUR18m to EUR74m. 

Activity split
In terms of activity split, turnover in cement improved by 11.3 per cent to EUR1483m and accounted for 53.7 per cent of the total, with cement deliveries increasing by 13.7 per cent to 20.53Mt and EBITDA increased by 8.7 per cent to EUR341m. The concrete and aggregates operations turned over 1.9 per cent less at EUR882m while EBITDA declined by 10.8 per cent to EUR71m with volumes declining by 6.8 per cent to 21.22Mt in aggregates and by three per cent to 8.27Mm³ in ready-mixed concrete. Other products and services produced another marginal reduction in turnover of 0.4 per cent to EUR399m while the EBITDA emerged 10 per cent lower at EUR30m.

France
The French turnover declined by 2.9 per cent to EUR831m while the EBITDA came down 15.9 per cent to EUR134m as the economic environment deteriorated, notably in the construction industry. Cement deliveries declined by more than two per cent and the turnover by three per cent. The product the mix was unfavourable in the early part of the year and the EBITDA declined by 11.7 per cent. Turnover in aggregates and concrete declined by 4.9 per cent as volumes declined by over seven per cent in aggregates but were stable in ready-mixed concrete though prices were under pressure here but not in aggregates and the EBITDA came off by 27.3 per cent. Other products and services saw a 0.5 per cent improvement in turnover but the EBITDA came off by 9.9 per cent.

Rest of Europe
In the rest of Europe, turnover declined by 2.1 per cent to EUR418m, of which Switzerland represented EUR393m, and EBITDA came down by 9.8 per cent to EUR103m.

Swiss cement turnover declined by five per cent to EUR107m after a very strong 2013 and volumes were around four per cent lower and the EBITDA came off by 13.6 per cent. The turnover in concrete and aggregates declined by 4.9 per cent, with prices being stable in ready-mixed concrete and slightly higher in aggregates as the product mix improved, while the Swiss EBITDA eased by almost four per cent. The other Swiss activities reported a 0.4 per cent reduction in turnover and 9.6 per cent fall in EBITDA.

The Italian turnover declined by 3.9 as volumes were off by more than 1 per cent and prices showed a more marked reduction, leading to a more notable fall in the EBITDA.

USA
The United States turnover improved by a further 11.7 per cent to EUR247m, in spite of a weaker US dollar and the EBITDA went from EUR5m to EUR17m with the trading loss being reduced from EUR17m to EUR5m. Cement volumes rose by almost 10 per cent and the turnover improved by 16.7 per cent and the EBITDA was more than quadrupled. Turnover in ready-mixed concrete rose by 9.6 per cent as volumes increased by four per cent with most of the growth being seen in California and the EBITDA was doubled in this activity.

Turkey
The Turkish turnover increased by 11.7 per cent to EUR229m in constant currency and the EBITDA advanced by more than 30 per cent. In cement, the turnover improved by 22.9 per cent, though cement deliveries declined by around two per cent and the EBITDA increased by 34 per cent. In aggregates and concrete, the turnover declined by 4.3 per cent as aggregates volumes declined by more than 17 per cent and ready-mixed concrete deliveries fell by some 11 per cent. The EBITDA declined by 8.5 per cent as the margin eased slightly.

India
In India, turnover rose by 54.7 per cent to EUR230m and the cement volume rose by around 41 per cent, as the volume rose from over 3.2Mt to almost 4.5Mt. Prices started improving from the second quarter and, helped by lower energy costs, the EBITDA more than trebled. In Kazakhstan volumes rose by around 24 per cent, to almost 1.3Mt. The turnover rose by 18 per cent to EUR71m at constant exchange rates and the EBITDA was more or less stable in spite of lower selling prices.

Africa & Middle East
The African and Middle Eastern turnover staged a 23.4 per cent recovery to EUR397m and the EBITDA improved by 22.1 per cent to EUR77m, while the trading profit jumped by 82.2 per cent to EUR48m. In Egypt, the underlying turnover rose by 58.6 per cent as shipments rose by almost 33 per cent in a dynamic market as the security situation improved and the EBITDA doubled.  The West African turnover improved by 12.8 per cent as volumes rose by almost 15 per cent and the EBITDA increased by 5.5 per cent.