Vicat advances in Turkey and Kazakhstan
Vicat's first-half turnover increased by 1.7 per cent to EUR1147.7m, which amounts to a 3.2 per cent improvement on a comparative basis as the France-based cement producer made notable advances in Turkey and in Kazakhstan.
EBITDA edged ahead by 0.4 per cent to EUR201.4m and the margin narrowed only slightly from 17.8 per cent to 17.6 per cent. The trading profit improved 2.4 per cent to EUR107m. After a net financial charge 9.8 per cent higher at EUR21.5m and a 33.8 per cent increase in the income from associates, the pretax profit came did improve by 1.3 per cent to EUR87.7m and the net attributable profit rose by 7.0 per cent to EUR54.9m. Capital spending in period dropped by 48.6 per cent to EUR78m. The net debt was 6.0 per cent lower at EUR1241m, giving a gearing level of 53.3 per cent.
Cement deliveries improved 3.8 per cent to 9.21Mt and the share of turnover from cement declined from 54.8 per cent to 52.4 per cent while the cement turnover advanced 1.2 per cent to EUR693.4m. Aggregates shipments increased by 3.8 per cent to 11.13Mt and ready-mixed concrete deliveries rose 12.7 per cent to 4.13Mm³, leading to a turnover 6.4 per cent higher at EUR432.1m, or 32.6 per cent of the group total. The sales contribution from distribution and other activities edged up by 0.4 per cent to EUR198.2m.
French turnover declined by a further 3.4 per cent to EUR425.7m, but the EBITDA edged ahead 1.3 per cent to EUR76m. The cement turnover was down 6.1 per cent as poor weather again depressed first quarter volumes and exports were lower, with the overall volume reduction being in the order of seven per cent, while a slight improvement was seen in the average price. Aggregates and concrete turnover improved by 2.3 per cent and 4.8 per cent respectively, with aggregates volumes recovering by a little over 1 per cent and ready-mixed concrete deliveries advancing by almost six per cent. Prices weakened marginally in concrete, but improved in aggregates, while the EBITDA improved by 31.3 per cent.
In the rest of Europe turnover improved by 3.1 per cent to EUR197.5m and the EBITDA was 0.6 per cent ahead at EUR47m. Swiss cement turnover amounted to EUR55m and competitive pressures did lead to a slight price reduction and the EBITDA came off by 6.2 per cent. Aggregates and concrete turnover advanced by 4.5 per cent and volumes improved in both products though average prices were lower be cause of the mix, but the EBITDA improved by 6.1 per cent. In concrete products, turnover increased by 4.8 per cent and prices by 17.0 per cent. The Italian turnover fell by 16 per cent as volumes fell by more than 23 per cent, but prices continued to recover and the EBITDA rose by more than 49 per cent.
The US turnover improved by a further 8.9 per cent to EUR103.4m, or by 9.8 per cent in dollar terms, while the EBITDA loss was reduced by from EUR7.6m to around EUR1m. The turnover in cement improved by 4.1 per cent on volumes that were about two per cent ahead. In California, increased infrastructure investment boosted volumes and prices showed a slight increase. In Alabama, volumes declined as the weather was unhelpful, but prices did improve. The EBITDA improved and is now close to break-even. In ready-mixed concrete, turnover improved by 12.3 per cent and volumes rose by some eight per cent. Prices were ahead and the EBITDA improved strongly and losses were early eliminated.
The Turkish turnover rose by 24.2 per cent to EUR118m. Cement volumes were well ahead and the turnover increased by 18.9 per cent, while the EBITDA rose by 22 per cent as selling prices improved. The concrete and aggregates turnover advanced by 32.2 per cent and the EBITDA was more than quadrupled. Volumes advanced by 25 per cent in ready-mixed concrete and by 13 per cent in aggregates.
The two Indian subsidiaries Bharathi Cement Company and Vicat Sagar Cement between them generated a turnover of EUR87.3m during the first half of 2013, which represents an underlying increase of 18.4 per cent. Cement shipments rose by some 34 per cent to almost 1.7Mt. Prices, however have been under pressure and costs related to the starting up of the latest cement works combined to lead to a 77.7 per cent reduction in the EBITDA.
Jambyl Cement in Kazakhstan generated a turnover 42.3 per cent higher at EUR38.9m and the EBITDA reached almost EUR14m, compared with EUR1m a year earlier. Cement deliveries were helped by favourable weather conditions and improved efficiency as the new works matured.
The African and Middle Eastern turnover declined by 10.0 per cent to EUR177.0m and the EBITDA fell by 21.1 per cent to EUR39m. The Egyptian turnover declined by an underlying 11.8 per cent as volumes declined by almost 25 per cent. This was partially compensated for by notably higher prices. Costs were also ahead and energy supplies continued to be disrupted, with the result that the EBITDA came down by 18.5 per cent. In West Africa, turnover declined by 4.1 per cent as volumes eased by 0.9 per cent. Prices were stable, but lower than a year earlier and electricity costs were higher. As a result, the EBITDA was off by 18.6 per cent.
