Buzzi Unicem records 1Q20 net sales of EUR688.5m
Buzzi Unicem has released its 1Q20 results which saw net sales reach EUR688.5m, up 4.9 per cent on 1Q19. Cement sales rose by 0.4 per cent to 6Mt, while concrete volumes fell by 3.5 per cent to 2.5Mm3, compared to 1Q19. Net debt as at 31 March 2020 amounted to EUR525.2m, EUR46.6m lower compared to the year-end 2019.
Since March production and business activities have been severely hampered by the outbreak of COVID-19 in Italy, Luxembourg and eastern Europe. Buzzi Unicem reports construction has not been directly affected by the lockdown in Germany and the USA.
Regional performance
In Italy, cement and clinker volumes were helped by the favourable climate and the contribution of the Testi cement plant and the two grinding plants in Piedmont. But March saw a market contraction because of COVID-19 and almost a complete stoppage of business. Ready-mix sales showed a marked decline with net sales falling from EUR119.6m to EUR114.7m, down -4.1 per cent.
Central Europe was steadied by Germany's ability to keep shipments from the company's production sites going. Hydraulic binders volumes slightly progressed, with selling prices improving. Total net sales stood at EUR149.3m compared to EUR137.1m in 2019.
Luxembourg and the Netherlands had a strong start to the year, but the Rumelange cement plant had production suspended in March. The ready-mix sector suffered a decline in sales volumes and overall net sales slipped from EUR43.5m to EUR41.2m, down -5.5 per cent.
Eastern Europe saw positive growth in the Czech Republic. Cement sales were strong in January-February but fell due to the COVID-19 pandemic in March. Ready-mix sales, which include Slovakia, recorded sales of EUR30.5m, up 6.9 per cent on year-end 2019.
In Poland the Nowiny cement plant remained operational although cement volumes slowed in March. Ready-mix output also decreased. However, net sales rose from EUR23.4m in 2019 to EUR24.8m in the current year.
In Ukraine net sales rose to EUR22.1m up 18.9 per cent and in Russia net sales revenue increased from EUR40.1m to 40.3m, up 0.2 per cent.
The USA had robust sales in southwest regions. Ready-mix output, mainly in Texas, was stable. Overall net sales rose to EUR273.7m from EUR252.8m, up 8.3 per cent o the previous year.
Mexican net sales decreased by 0.6 per cent. Cement sales saw a slight increase in volumes while ready-mix sales contracted.
Brazilian cement and clinker sales decreased due to heavy rain in the southeast of the country and the epidemic's spread. Net sales fell from EUR33.3m to EUR28.8m, down 13.5 per cent.
Outlook
In its analysis of the 1Q20 results Buzzi Unicem says the impact of COVID-19 was limited and the two central quarters of the year will provide more precise indication of the intensity of the global recession and the demand for building materials.
