Buzzi Unicem reports EBITDA rose by nearly 14% in 2018
Buzzi Unicem released its consolidated financial statement for 2018, reporting that EBITDA rose by 13.6 per cent in 2018 to EUR577m, up by EUR69m on 2017. Net debt increased to EUR891m rising by EUR28m after investments of EUR444m, of which EUR31m were for expansion projects, EUR45m for the acquisition of Seibel & Sohne in Germany and EUR161m for the strategic agreement with Grupo Ricardo Brennand in Brazil.
In 2018 the group sold 27.9Mt of cement, up 4.3 per cent on 2017 and 12.1Mm3 of ready-mix concrete down 1.6 per cent on 2017.
Buzzi Unicem spent EUR31.5m on capacity expansion projects in 2018. These mainly relate to the phase two of the new production line at Maryneal cement plant in Texas, the reconstruction of the filter system at Cape Girardeau, Missouri, USA and the modernisation of the Dallas Terminal in Texas.
In 2018, the parent company Buzzi Unicem SpA reported a net profit of EUR97.9m compared to EUR50.8m in 2017 and a cash flow of EUR138.7m.
Outlook
Buzzi Unicem sees signs of a slowdown in Italy even though cement consumption should remain 'subtantially stable', with a less fragmented market and the possibility of upward pricing. Cement demand in Poland and Czech Republic are also expected to remain stable with increases in selling prices to absorb the higher energy and CO2 emission rights costs.
The Ukraine has some fragile prospects for recovery and volumes may improve slightly, although any improvements will depend on local currency not depreciating. Russia's market may also see a moderate economic recovery.
The USA has good prospects for construction investment and a positive trend for cement demand which may slightly recover lost volumes in 2018 which were impacted by severe weather.
Buzzi Unicem concludes with a forecast that the recurring EBITDA for 2019 may achieve a favourable variance of between 5-8 per cent versus 2018.
