Buzzi SpA sees 1H23 volumes decline in Europe

Buzzi SpA sees 1H23 volumes decline in Europe
08 August 2023

Buzzi SpA reported cement volumes declining across much of western Europe in the 1H23, while the USA saw volumes rise significantly.

Hydraulic binders and clinker sales in Italy were stable in the first six months of the year (-0.3 per cent), thanks to the recovery recorded in the second quarter. Ready-mix concrete output contracted, albeit moderately (-2.5 per cent). Selling prices closed the half-year without any significant changes compared to the level reached at the end of 2022 but, thanks to the carryover effect, they still were a better result than last year. Net sales in Italy came in at EUR424.1m, up 18.5 per cent (EUR357.9m in 2022). EBITDA achieved EUR98.5m, more than double compared to EUR35.6m of last year.

In the USA net sales reached EUR846.8m, up 16.6 per cent compared to EUR726.5m of 2022. The appreciation of the dollar (+1.2 per cent) had a positive impact on the translation of results into euro. EBITDA increased from EUR180.6m to EUR256.9m (+42.3 per cent).

In Germany cement volumes sold showed a rather negative trend (-19 per cent) compared to 2022. Overall net sales thus increased from EUR392.9m to EUR441.3m (+12.3 per cent) while EBITDA increased from EUR64.5m to EUR100.1m (+55.2 per cent).

In Luxembourg and The Netherlands cement deliveries declined by 39 per cent in the 1H23. Net sales came in at EUR115.8m, stable compared to the previous year (EUR116.4m). EBITDA stood at EUR12.6m, increasing compared to EUR4.8m in 2022.

Czech Republic sales of cement closed the 1H23 down 16.7 per cent. Consolidated net sales in the country amounted to EUR102.8m (EUR96.7m in 2022, +6.4 per cent) and EBITDA increased from EUR29.4m to EUR33.6m (+14.6 per cent). 

Meanwhile, Slovakia cement volumes declined 18.5 per cent. Polish cement volumes fell 12.7 per cent in the 1H23, while ready-mix volumes slipped by 12.9 per cent.  Net sales in Poland increased by 11.9 per cent from EUR68.4m to EUR76.6m. EBITDA also increased, by 28.8 per cent from EUR17.6m to EUR22.7m.

Cement volumes in Ukraine rose by 22 per cent in the 1H23, while the ready-mix sector declined by 9.3 per cent. Net sales stood at EUR35.1m, up compared to EUR28.3m achieved in 2022. Despite the recovery, production activity was still impacted by operational difficulties and EBITDA fell to EUR2.3m from EUR3.5m in the 1H22.

Russian subsidiary SLK Cement’s net sales totalled EUR142.8m, up 25 per cent on EUR114.3m in 1H22, while EBITDA rose from EUR36m to EUR48.4m, or by 34.6 per cent.

Meanwhile, the Mexican joint venture with Grupo Ricardo Brennand reported selling prices, in local currency, improved. Net sales stood at EUR189.7m, up 5.7 per cent compared to EUR179.6m of the previous year, while EBITDA reached EUR38.3m, declining compared to EUR46.6m of 2022.

"The most recent forecasts indicate that activity in the construction sector will remain generally subdued also during the second half of 2023, influenced by the increased uncertainty of the dynamics of private investments and by higher financing costs," said Buzzi. Buzzi SpA expect a stable trend both in Italy, thanks to the positive contribution of the infrastructure development plans, and in the United States, supported by the good order backlog and by the early examples of construction sites for projects related to the Building a Better America plan (signed in November 2021). In central Europe, the Czech Republic and Poland, on the other hand, Buzzi believes that "the generalised weakness of demand will persist in the second half of the year, making a clear recovery in sales volumes very difficult."

Published under Cement News