Buzzi Unicem regional performances in 1H22

Buzzi Unicem regional performances in 1H22
05 August 2022

Buzzi Unicem reported positive development of deliveries in the United States, central Europe, Poland and the Czech Republic in the 1H22, as well as a continued slowdown in Italy and Ukraine.

In Ukraine, at the end of February 2022, Buzzi Unicem was obliged to suspend production and commercial activities in both of our factories. At the end of March, with the repositioning of the conflict in the east and south-east of the country, the activity resumed at the Volyn plant, in the northwest, while the Nikolayev plant, in the south, continued to remain idle. During the whole semester, sales volumes substantially halved, compared with the same period of 2021. Selling prices, in local currency, showed a marked increase.

Overall Ukrainian net sales amounted to EUR28.3m, down 44.5 per cent from EUR51m in 2021, while EBITDA was EUR3.5m compared to EUR5.6m  in the first half of 2021. “The fall in volumes was accompanied by a strong worsening of production costs, both as regards variable and fixed items,” said a Buzz Unicem press release.

Italian sales of hydraulic binders and clinker fell 12.4 per cent in the 1H22 compared to the 1H21. Ready-mix sales in Italy slipped by 5.6 per cent in the 1H22, while selling prices improved in the first three months of the year for both cement and concrete. The price increases did not compensatefor the rising costs in production and overall inflation.

German cement sales slowed in the 2Q22 as construction activity faltered. In the first six months of 2022, cement sales rose by seven per cent in Germany while ready-mix sales increased by 5.6 per cent in the same period compared to the 1H21. Overall net sales totalled EUR292.9m in Germany, up 15 per cent from EUR341.7m in the 1H21. EBITDA stood at EUR64.5m compared to EUR60.6m in the 1H21, up 6.5 per cent.

Polish cement volumes rose by 10.4 per cent on those recorded in the 1H21, despite a contraction in May and June. Polish ready-mix concrete output rose by 6.3 per cent during the period under review. Net sales in Poland totalled EUR68.4m, an increase of 27.3 per cent compared to EUR53.7m in the 1H21.

Meanwhile, Czech Republic cement sales rose by 3.2 per cent in the 1H22 and ready-mix sales, which included Slovakia, rose by one per cent compared to the 1H21. Net sales in the Czech Republic totalled EUR96.7m, a rise of 20.2 per cent compared to EUR80.4m in the 1H21.

Cement deliveries in Luxembourg and the Netherlands rose by 2.6 per cent while ready-mix concert sales grew by 15.1 per cent compared to the 1H21. Net sales totalled EUR116.4m compared to EUR100.6m in the 1H21.

In Russia, due to the sanctions imposed on the country by the European institutions, Buzzi Unicem withdrew from any operational involvement in the activities carried out by the subsidiary SLK Cement in the country. During the first six months of 2022, net sales stood at EUR114.3m, up 21.7 per cent from EUR93.9m in the same period of 2021, while EBITDA reached EUR36m in the 1H22 (up 43 per cent compared to EUR25.2m in the 1H21)

North America
US cement volumes rose 2.6 per cent compared to the levels of the previous year. Ready-mix concrete output, mainly present in Texas, closed the first half down six per cent on the 1H21. Net revenues came in at EUR726.5m, up 21.3 per cent compared to EUR599m in the first sixmonths of 2021. EBITDA dropped from EUR181.6m to EUR180.6m.

Central America
Mexican cement deliveries fell by 11.8 per cent in the 1H22 while ready-mix concrete output also reduced, with a positive price change in local currency. Cemento Moctezuma’s net sales totalled EUR353.1m, up 4.7 per cent on the 1H21 while EBITDA slipped to EUR149.5m down 0.9 per cent from EUR150.9m in the 1H21.

Latin America
Brazilian cement sales of Buzzi Unicem’s joint venture benefited from the additional contribution of the former CRH cement plants acquired in April 2021, and showed marked progress up 19.7 per cent in the 1H21. Net sales, through the BCPAR associate, reached EUR179.6m, up 68.7 per cent compared to EUR106.4m in the 1H21. EBITDA totalled EUR46.6m versus EUR37m in the 1H21.

Published under Cement News