Vicat sees strong growth in net profit

Vicat's 1H18 turnover improved by 2.7 per cent to EUR1281m, or by 9.6 per cent on a comparative basis. EBITDA advanced by 4.5 per cent to EUR197m, or by 12.3 per cent on a comparative basis, and the margin improved from 15.1 to 15.4 per cent. The trading profit rose by 21.3 per cent to EUR104m, while the net interest charge was EUR1.8m lower at EUR11.1m, giving an attributable profit 47.2 per cent higher at EUR59m. The net debt at the end of the period amounted to EUR895m, an 11 per cent reduction, and the gearing level declined from 41.8 to 38.3 per cent.

Cement deliveries were up by 5.3 per cent to 11.36Mt and the share of turnover from cement eased slightly from 51.5 to 51.2 per cent while the cement turnover improved by 1.3 per cent to EUR743m. EBITDA edged ahead by 0.2 per cent to EUR153m. Aggregates shipments declined by 1.3 per cent to 11.47Mt, while ready-mixed concrete deliveries were up by 2.4 per cent to 4.57Mm³, leading to a turnover 0.1 per cent lower at EUR490m, or 33.8 per cent of the group total. EBITDA was 0.2 per cent ahead at EUR153m. The sales contribution from distribution and other activities improved by 8.4 per cent to EUR218m while EBITDA emerged 10.6 per cent lower at EUR10m. 

The French turnover improved by 6.4 per cent to EUR473m and EBITDA was ahead by 19.2 per cent to EUR62m with the trading profit rising by 57.3 per cent to EUR33m. The cement turnover improved by 4.4 per cent to EUR190m as cement volumes were ahead by more than three per cent, while EBITDA advanced by 10.8 per cent. Aggregates and concrete turnover were up by 2.7 per cent to EUR232m. EBITDA rose strongly by 136.2 per cent, helped by higher prices and concrete volumes. Aggregates volumes, on the other hand, were almost six per cent lower. Other products and services showed a 12.2 per cent improvement and EBITDA advanced by 2.3 per cent.

In the rest of Europe turnover declined by 6.4 per cent to EUR184m, largely reflecting a weaker Swiss franc, while EBITDA came off by 16.9 per cent to EUR35m. Swiss cement volumes came down by almost 11 per cent, reflecting unfavourable weather, fewer working days and contract completions. Prices showed a marginal recovery. Volumes in aggregates came off by more than 12 per cent and in ready-mixed concrete volumes were off by over 10 per cent. The turnover declined by 10.5 per cent. In concrete products, turnover improved by 4.8 per cent, but EBITDA fell back by 31.1 per cent because of competitive pressures and exchange rate movements.  The Italian turnover declined by 1.4 per cent as volumes were off by more than three per cent, but pricing advanced while EBITDA registered an 11.7 per cent decline.

The US turnover improved by 0.9 per cent to EUR194m, but at the underlying level there was a 12.9 per cent advance. EBITDA was 45.8 per cent ahead at EUR35m and the trading profit just over doubled to EUR21m. The turnover in cement improved by an underlying 12 per cent, but the published advance was just 0.6 per cent to EUR105m on volumes that were some seven per cent higher. In ready-mixed concrete, underlying turnover was ahead by 10.4 per cent, but the published figure was 1.3 per cent lower. Ready-mixed concrete volumes were up by eight per cent. The turnover increased by an underlying 10.4 per cent, and an actual two per cent to EUR118m. The EBITDA margin improved by some 10 basis points. Prices moved ahead more strongly in California than in the southeastern states.  

The Turkish turnover recovered by 3.9 per cent to EUR95m but improved by 30.7 per cent on a constant currency basis. EBITDA recovered by 135.5 per cent, or by 87.1 per cent on a constant currency basis to EUR15m. Cement volumes were well ahead, with all of the increase coming during the first quarter. Cement EBITDA recovered by a locally published 65.2 per cent and an actual underlying 31.3 per cent. The concrete and aggregates turnover was 29.4 per cent higher, or by 2.8 per cent higher in euros. Volumes improved in ready-mixed concrete but declined in aggregates.

The two Indian subsidiaries Bharathi Cement Company and Kalburgi Cement between them generated a turnover of EUR171m during the first half, which represents an increase of 14.4 per cent, but at constant exchange rates and parameters the increase was 27.8 per cent. Cement shipments recovered strongly and the volume sold rose by more than 34 per cent to almost 3.3Mt, but average prices declined notably. As a result, EBITDA declined by 21.9 per cent to EUR22.7m. Jambyl Cement in Kazakhstan saw turnover rise by 21.4 per cent to and EBITDA rose by a further 45.4 per cent recovery as margins increased from 30.7 to 32.1 per cent, and cement deliveries rose by almost 28 per cent thanks to good domestic volumes and notably strong export sales.

The African and Middle Eastern turnover declined by 9.5 per cent to EUR136m. EBITDA fell by 18 per cent to EUR18m. The Egyptian turnover dropped by a further 53 per cent to EUR14.4m. Volumes fell by more than 62 per cent as military action hindered deliveries and there was an EBITDA loss of EUR3.9m compared with a EUR3.8m loss in the same period last year.  In West Africa the turnover improved by 4.3 per cent as volumes improved by almost six per cent. Aggregates volumes continued to be expanded in Senegal. Higher costs, notably for energy, led to a 14.5 per cent reduction in EBITDA to EUR22.2m.