Vicat suffers from currency weakness in several countries

Vicat suffers from currency weakness in several countries
04 August 2017

Vicat's first half turnover edged ahead by 0.8 per cent to EUR1248m, or by 0.9 per cent on a comparative basis, but the EBITDA declined by 8.7 per cent to EUR188m and the margin declined from 16.7 per cent to 15.1 per cent. The trading profit came off by 16.2 per cent to EUR86m, while the net interest charge was 29.9 per cent lower at EUR12.9m, giving a attributable profit 17 per cent lower at EUR40m.  Net debt at the end of the period amounted to EUR1006m, a five per cent reduction, and the gearing level declined from 44.1 per cent to 41.8 per cent.

Cement deliveries were off by 2.6 per cent to 10.79Mt and the share of turnover from cement eased from 53.7 per cent to 51.5 per cent while the cement turnover eased by 3.6 per cent to EUR734m and the EBITDA came down by 8.6 per cent to EUR153m. Aggregates shipments improved by 6.2 per cent to 11.62Mt while ready-mixed concrete deliveries were up by 3.1 per cent to 4.47m m³, leading to a turnover 7.5 per cent higher at EUR490m, or 34.4 per cent of the group total, but the EBITDA was 12.1 per cent lower at EUR24m. The sales contribution from distribution and other activities edged ahead by 0.2 per cent to EUR202m while the EBITDA emerged 2.8 per cent lower at EUR11m.

The French turnover improved by 9.7 per cent to EUR444m and the EBITDA was ahead by 3.8 per cent to EUR52m with the trading profit advancing by three per cent to EUR21m. Cement turnover eased by 0.5 per cent to EUR182m as domestic volumes were slightly ahead, but exports fell, giving at total volume reduction of around two per cent, while the EBITDA improved by 3.8 per cent. Aggregates and concrete turnover improved by 18.3 per cent to EUR226m while the EBITDA recovered strongly, helped by higher concrete prices, thoug concrete volumes were down by some four per cent. Aggregates volumes were almost eight per cent ahead, but the average price achieved was slightly lower.

In the rest of Europe turnover eased by 0.5 per cent to EUR197m, while the EBITDA came off by 5.9 per cent to EUR42m. Swiss cement volumes improved, but prices came under pressure from imports, given the strong Swiss franc and margins suffered. Volumes in aggregates came off by more than 8 per cent but in ready-mixed concrete volumes were off by just 2 per cent. In concrete products, turnover eased by 0.9 per cent but the EBITDA recovered by 7.7 per cent thanks to re-organisation benefits. The Italian turnover improved by 1.6 per cent as volumes were off by  one per cent but pricing recovered and the EBITDA registered a 96 per cent advance.

 US turnover rose by a further 9.1 per cent to EUR192m but the EBITDA was just 6.4 per cent ahead at EUR24m. Turnover in cement improved by 12.3 per cent to EUR105m on volumes that were more than four per cent higher. In California volumes recovered and more than compensated for a reduction in the south-east. Prices were ahead in both regions and the first half EBITDA rose by 24.6 per cent, or more than 260 basis points. In ready-mixed concrete, turnover improved by 7.1 per cent to EUR120m and volumes were ahead by more than two per cent. EBITDA dropped by 68.1 per cent, reflecting exceptional credits in the comparable period, adverse weather conditions and increased competitive pressures.

The Turkish turnover declined by 15.8 per cent to EUR91m, but improved by 1.7 per cent on a constant currency basi9s. The EBITDA declined by 60.9 per cent, or by 52.7 per cent on a constant currency basis. Cement volumes were ahead by over 3 per centll, but volumes sold by the Konya works were little changed and the increase was all in the Ankara region. The cement EBITDA declined by an underlying 68.1 per cent. The concrete and aggregates turnover was 20.1 per cent lower level while volumes improved 1 per cent in aggregates, but declined by almost 7 per cent in concrete.

The two Indian subsidiaries Bharathi Cement Company and Kalburgi Cement between them generated a turnover of EUR150m during the first half, which represents an increase of 7.1 per cent, but at constant exchange rates and parameters the increase was just 1.6 per cent. Cement shipments declined by almost 3 per cent to almost 2.5Mt but average prices improved. As a result, the EBITDA improved by an underlying 12.7 per cent to EUR33m. Jambyl Cement in Kazakhstan saw turnover recover by 16 per cent to and the EBITDA staged an 80.4 per cent recovery as margins increased from 17.7 per cent. to 30.7 per cent, but cement deliveries declined by in almost 12 per cent because of unfavourable weather.

African and Middle Eastern turnover fell by 21 per cent to EUR150m and the EBITDA dropped by 40.2 per cent to EUR22m. The Egyptian turnover dropped by 49.6 per cent to EUR33.7m, influenced by the devaluation of the Egyptian currency last November. Volumes were almost four per cent lower and there was an EBITDA loss of EUR3.8m compared with a profit of EUR11.7m. In West Africa, the turnover declined by an underlying 5.4 per cent as volumes were declined by almost 12 per cent. Prices were slightly lower in Sénégal and in Mauritania, but improved in Mali. Aggregates volumes showed a strong advance. The EBITDA were little changed at EUR26.1m.

Published under Cement News

Tagged Under: Europe Results France Vicat