Vicat's 2017 profits lower at pretax, but higher at net level

Vicat's 2017 profits lower at pretax, but higher at net level
20 February 2018

Vicat's turnover improved by 4.5 per cent in 2017 to EUR2563.5m while EBITDA eased by three per cent to EUR444.2m, while at unchanged exchange rates and other parameters the changes would have been +6.4 per cent and -3.4 per cent, respectively. The trading profit declined by 4.1 per cent to EUR247.2m, with the decline at unchanged parameters being 5.9 per cent.

The net financial charge was 26.85 per cent or EUR9.9m lower at EUR28.2m and after a reduction in the contribution from associates from EUR13.7m to EUR5.6m, the pretax profit came off by 13 per cent to EUR209.1m. After a 20.3 per cent lower tax charge of EUR53.2m and a 46.9 per cent lower minorities charge of EUR13.7m, the net attributable profit emerged 2.2 per cent ahead at EUR142.2m.

The net debt at the end of the year was 8.7 per cent higher at EUR991.5m and represented 45.6 per cent of total shareholders' funds, compared with 36.9 per cent a year earlier and 45.2 per cent the year before. 

In terms of activity split, turnover in cement edged ahead by 0.2 per cent to EUR1493m and accounted for 51 per cent of the total, compared with 52.9 per cent in the previous year. Cement deliveries increased by 4.9 per cent to 22.94Mt, but EBITDA declined by 7.2 per cent to EUR353m. The concrete and aggregates operations turned over 8.6 per cent more at EUR1,008m and EBITDA advanced by 13.8 per cent to EUR65m with volumes improving by 10.4 per cent to 24.41Mt in aggregates and by 9.7 per cent to 9.69m m³ in ready-mixed concrete. Other products and services produced a 6.5 per cent increase in turnover to EUR425m while EBITDA contribution rose by 28.3 per cent to EUR26m.  In terms of turnover, France accounted for 32.7 per cent, Switzerland and Italy for 16.0 per cent, the USA for 15.3 per cent, Asia for 22.6 per cent and Africa and the Middle East for 11.3 per cent. 

The French turnover improved by 12.0 per cent to EUR890m while EBITDA rose by 12.3 per cent to EUR129m and the trading profit advanced by 17.4 per cent to EUR69m. Cement deliveries were 0.6 per cent ahead overall, though exports were lower, and EBITDA managed a 1.9 per cent improvement. The average selling price was stable on the domestic market and lightly better as regards export prices. Turnover in aggregates and concrete improved by three per cent as volumes were almost 10 per cent ahead in aggregates but recorded an underlying decline of four per cent in ready-mixed concrete. EBITDA and margins showed a good improvement. Other products and services saw a turnover improve by 5.5 per cent, but EBITDA declined by 8.7 per cent.

In the rest of Europe, turnover declined by 0.3 per cent, to EUR410m. EBITDA improved by 0.3 per cent to EUR95m and the trading profit recovered by 4.6 per cent to EUR62m. The Swiss turnover came off by a very marginal 0.1 per cent and EBITDA was stable. The Swiss cement turnover declined by 2.9 per cent with volumes improving by just over 1 per cent while EBITDA eased by 0.9 per cent. The turnover in concrete and aggregates same off by 8.3 per cent. Volumes declined by over five per cent in concrete and by eight per cent in aggregates. EBITDA showed a 15.3 per cent reduction. The other Swiss activities reported an underlying 14.4 per cent improvement in turnover and EBITDA staged an underlying 91.6 per cent recovery. The Italian turnover showed a 6.1 per cent reduction as volumes declined by nine per cent, but prices did recover as did the EBITDA margin. 

The United States turnover improved by 8.1 per cent to EUR393m and EBITDA was up by 1.9 per cent to EUR60m with the trading result advancing by 3.3 per cent to EUR34m. Cement volumes rose by almost eight per cent and the turnover advanced by an underlying 12.2 per cent and by a reported 9.9 per cent. EBITDA increased by a further 15.6 per cent.  Turnover in ready-mixed concrete was ahead by 7.1 per cent as volumes went up by almost eight per cent with all of the rise being in California while average selling prices improved more in California than in the south-east. Price competition was severe in the southeast and as a result, EBITDA dropped by 55.5 per cent.

The Asian turnover improved by 7.7 per cent to EUR579m, while EBITDA came off by 1.5 per cent to EUR118m. The Turkish turnover eased by 1.5 per cent to EUR216m and EBITDA declined by 21.7 per cent. In cement, the turnover was 1.7 per cent lower, reflecting the fall in the value of the Turkish currency, but cement deliveries were well ahead though on translation. EBITDA fell by 21.5 per cent. In aggregates and concrete, the turnover declined by 7.3 per cent, though at the underlying level there was a 14.3 per cent improvement. Volumes improved by more than nine per cent in ready-mixed concrete and by close to 20 per cent in aggregates while EBITDA declined by 9.1 per cent, though at the underlying level there was a 12 per cent improvement. 

In India turnover increased by 13.8 per cent to EUR313m with cement volumes being ahead by more than 13 per cent to almost 5.5Mt, with prices showing a slight improvement. EBITDA showed a 7.3 per cent rise, though the margin declined from 22.2 per cent to 20.9 per cent. In Kazakhstan volumes eased by more than 1 per cent, but prices rose and the turnover was 15.1 per cent ahead at EUR51m. EBITDA advanced by 36 per cent and the margin increased from 25.4 per cent to 30.1 per cent.

The African and Middle Eastern turnover declined by 15.9 per cent in euro terms to EUR291m and EBITDA by 39.1 per cent to EUR43m, primarily reflecting the drop in the value of the Egyptian currency. At the trading level the fall was more marked at 67.8 per cent to EUR11m. In Egypt the turnover was 45.3 per cent and volumes declined by in excess of eight per cent and a loss of EUR8.3m was incurred. The west African turnover came off by 0.5 per cent to EUR227m, while volumes were more than four per cent lower. Cement volumes were slightly lower in Senegal and in Mauritania, but improved in Mali, while aggregates deliveries rose in Senegal.

The current year should, in the view of the Vicat management, see continued improvements the USA, India, France and in Kazakhstan and more modest improvements in Switzerland and Italy.

Published under Cement News

Tagged Under: Vicat France business results