Vicat advances in spite of weakness in France
Vicat's first half turnover increased by 6.1 per cent to EUR1217.8m, which amounts to a 10.8 per cent advance on a comparative basis.
EBITDA was ahead by 3.1 per cent to EUR207.7m and the margin narrowed from 17.5 per cent to 17.1 per cent. The trading profit, however, improved by 9.4 per cent to EUR115.2m, an underlying increase of 15.8 per cent. After a net financial charge 38.2 per cent higher at EUR29.7m and a 20 per cent decline in the income from associates to EUR1.7m, the pre-tax profit declined by 3.7 per cent to EUR84.4m and the net attributable profit came off by seven per cent to EUR50.7m.
Capital spending in period declined by 6.4 per cent to EUR73m and should amount to some EUR140m for the full year. The net debt was 4.7 per cent lower at EUR1183m, giving a gearing level of 52.7 per cent.
Cement deliveries ahead
Cement deliveries rose by 14.8 per cent to 10.57Mt and the share of turnover from cement improved from 50.6 per cent to 52 per cent while the cement turnover improved by 7.2 per cent to EUR743m. Aggregates shipments eased by 1.2 per cent to 11Mt while ready-mixed concrete deliveries edged ahead by 0.4 per cent to 4.15Mm³, leading to a turnover 1.8 per cent higher at EUR440m, or 35.3 per cent of the group total. The sales contribution from distribution and other activities improved by 3.4 per cent to EUR 205m.
Domestic volumes increase, average selling prices lower
The French turnover recovered by 2.6 per cent to EUR437m, but the EBITDA declined by 10.9 per cent to EUR68m. The cement turnover was ahead by 1.4 per cent and better weather conditions led to an the overall volume increase in excess of four per cent, but a less favourable product mix led to a lower the average selling price.
Aggregates and concrete turnover improved by 1.5 per cent to EUR217m, but the EBITDA declined by 12.3 per cent. Aggregates volumes improved by more than three per cent but prices were a little weaker and ready-mixed concrete deliveries advanced by over two per cent.
Rest of Europe
In the rest of Europe turnover improved by 2.8 per cent to EUR204m but the EBITDA was off by 1.4 per cent. Swiss cement turnover declined by 6.8 per cent to EUR51m and competitive pressures led to some price reduction, in part reflecting a less favourable mix and the underlying EBITDA came off by 0.9 per cent. Aggregates and concrete turnover, however, improved by 9.4 per cent with volumes increasing by 13 per cent in aggregates and by 12 per cent in ready-mixed concrete while prices improved in aggregates and were stable in concrete. In concrete products, underlying turnover increased by 2.7 per cent and volumes were more than four per cent ahead. Italian turnover declined by 8.6 per cent and volumes were off by more than seven per cent and the average price declined. As a result, the EBITDA declined by 18.8 per cent.
US earnings swing to profit
The US turnover rose by a further 11.8 per cent to EUR116m, or by 16.3 per cent in dollar terms, while the EBITDA turned positive to the extent of EUR2m. The turnover in cement improved by 18 per cent to EUR53m on volumes that were more than 12 per cent higher. In California volumes advanced by 15 per cent while in Alabama the increase was eight per cent. Prices improved, more so in Alabama than in California. The EBITDA went from a EUR0.3m loss to a EUR0.3m profit. In ready-mixed concrete, turnover improved by an underlying 15.1 per cent to EUR82m and volumes rose by almost nine per cent. Prices made a solid advance and the EBITDA went from a EUR0.5m loss to a profit in excess of EUR2m.
Turkish volumes dampened
The Turkish turnover declined by 7.2 per cent to EUR109m but improved by 15.3 per cent on a constant currency basis. Cement volumes suffered from wet weather and were off by more than five per cent but the turnover increased by 16.6 per cent, while the EBITDA rose by 26.1 per cent as selling prices improved further. The concrete and aggregates turnover was just 1.3 per cent higher because of poor meteorological conditions and volumes declined, but the EBITDA rose by 34.1 per cent.
Indian EBITDA jumps
The two Indian subsidiaries Bharathi Cement Company and Vicat Sagar Cement between them generated a turnover of EUR113m during the first half, which represents an increase of 29.4 per cent, but at constant exchange rates the increase reads 49.4 per cent. Cement shipments rose by some 51.8 per cent to almost more than 2.5Mt. Prices began to recover in the second quarter and were back to where they were a year ago. Thanks to the latest cement works now running and commissioning costs being history, the EBITDA staged an underlying 260.2 per cent advance.
Kazakhstan price weakness
Jambyl Cement in Kazakhstan saw its turnover fall by 19.2 per cent to EUR31.4m, all but EUR1.2m of the drop was currency related. The EBITDA eased by 3.7 per cent to some EUR11m. Cement deliveries did increase by 4.3 per cent, having been off by 14 per cent in the first half because of inclement weather and the poor start to the year led to some price weakness.
MEA turnover recovers
The African and Middle Eastern turnover did recover and improved by 17.7 per cent to EUR208m and the EBITDA rose by 16.9 per cent to EUR46m. The Egyptian turnover rose by 40.6 per cent to EUR61.8m as volumes improved by 19 per cent and the EBITDA jumped by 96.6 per cent and prices advanced. In West Africa, the turnover improved by an underlying 13.5 per cent as volumes rose by almost 17 per cent. Prices were lower than a year ago and, the EBITDA eased by 1.5 per cent.
