Vicat's 1H16 results in the USA continue to improve

Vicat's first half turnover eased by 0.4 per cent to EUR1237m, which amounts to a 4.3 per cent increase on a comparative basis. The EBITDA improved by 2.3 per cent to EUR208m and the margin improved from 16.3 per cent to 16.8 per cent. The trading profit moved ahead by 11.2 per cent to EUR103m, with the underlying margin improving by 16.5 per cent. The net attributable profit improved by 45.7 per cent to EUR49m, while net debt at the end of the period amounted to EUR1059m and the gearing level declined from 46.8 per cent compared to 43.9 per cent.

Cement sales
Cement deliveries increased by 12.1 per cent to 11.07Mt and the share of turnover from cement eased from 54.8 per cent to 53.7 per cent while the cement turnover eased by 1.6 per cent to EUR761m, but the EBITDA improved by 3.3 per cent to EUR168m. Aggregates shipments recovered by 8.9 per cent to 10.95Mt while ready-mixed concrete deliveries were ahead by 12.1 per cent to 4.33Mm³, leading to a turnover 3.5 per cent higher at EUR456m, or 32.2 per cent of the group total and the EBITDA was 4.3 per cent higher at EUR28m. The sales contribution from distribution and other activities advanced by two per cent to EUR201m while the EBITDA emerged 13.8 per cent lower at EUR11m.

French and European market
The French turnover improved by 4.4 per cent to EUR405m and the EBITDA advanced by 4.1 per cent to EUR51m with the trading profit recovered by 16.7 per cent to EUR21m. The cement turnover improved by 4.8 per cent to EUR181m as domestic and export volumes advanced by almost 10 per cent and the EBITDA rose by 16.6 per cent. Aggregates and concrete turnover recovered by 4.7 per cent to EUR191m while the EBITDA showed a further reduction as prices came under increased pressure. Aggregates volumes were more than one per cent ahead and ready-mixed concrete deliveries rose by over 10 per cent.

In the rest of Europe turnover improved by declined by 4.1 per cent to EUR198m, while the EBITDA fell by 8.1 per cent to EUR45m. Swiss cement volumes declined by more than four per cent while volumes in aggregates improved by more than one per cent but fell by almost three per cent in ready-mixed concrete. In concrete products, turnover decreased by 10.5 per cent and the EBITDA dropped by 46.2 per cent. The Italian turnover showed an 8.7 per cent recovery and volumes were ahead by 10 per cent but pricing continued to weaken and the EBITDA declined by 23.1 per cent.

USA
The US turnover rose by a further 7.1 per cent to EUR176m while the EBITDA jumped by a further 72.1 per cent to EUR22m. The turnover in cement improved by 16.3 per cent to EUR93m on volumes that were 10 per cent higher. In California volumes eased by one per cent while in Alabama there was an increase of almost 22 per cent. Prices were usefully ahead in both regions and the first half EBITDA rose by more than 600 basis points. In ready-mixed concrete, turnover eased by 1.3 per cent to EUR112m and volumes were off by more than seven per cent. Prices advanced more strongly in California and the EBITDA rose by 56.2 per cent on an underlying basis. 

Turkey
The Turkish turnover eased by 1.9 per cent to EUR109m, but improved by 11.7 per cent on a constant currency basis. The EBITDA declined by 3.9 per cent, but improved by 9.5 per cent on a constant currency basis. Cement volumes were ahead overall, but volumes sold by the Konya works were in decline and the underlying EBITDA declined by an underlying 5.7 per cent. The concrete and aggregates turnover was 7.4 per cent higher, rose by 22.3 per cent at the underlying level while volumes improved in both concrete and in aggregates.

Other markets
The two Indian subsidiaries Bharathi Cement Company and Kalburgi Cement between them generated a turnover of EUR140m during the first half, which represents an increase of 1.7 per cent, but at constant exchange rates and parameters the increase was 8.7 per cent. Cement shipments were increased by in excess of 28 per cent to in excess of 2.5Mt but average prices declined. As a result, the EBITDA eased by 1.6 per cent to EUR27.7m. Jambyl Cement in Kazakhstan saw turnover drop by 46.6 per cent to EUR20.2m as a result of the drop in the value of the local currency, and the EBITDA fell by 38.9 per cent to EUR3.6m. Cement deliveries increased by in excess of one per cent.

The African and Middle Eastern turnover declined by 4.5 per cent to EUR190m but the EBITDA staged a 25.6 per cent recovery to EUR38m. The Egyptian turnover eased by 0.3 per cent to EUR67m, but at constant parameter prices there was an 11.6 per cent improvement. Volumes were almost 15 per cent higher and, thanks a full period’s use of the two coal mills, and the EBITDA advanced from break-even to almost EUR12m. In West Africa, the turnover declined by an underlying 6.6 per cent as volumes were off overall with a near four per cent improvement in Sénégal being offset by a decline in Mauritania and Mali were stable. The EBITDA declined by 14.6 per cent to EUR26.1m.