Vicat reports 20% rise in 1H consolidated sales

Vicat reported a 19.6 per cent increase in consolidated sales as they rose from EUR1.304bn in the 1H20 to EUR1.56bn in the 1H21. At constant scope and exchange rates the advance is 26.2 per cent YoY.

The group enjoyed strong sales growth in the 1H21 as buoyant markets combined with a favourable basis of comparison.  Business was hit particularly hard in the 2Q20, particularly in India and France, by the spread of COVID-19 and the governmental measures introduced to tackle it. Although the pandemic has continued into the early part of this year, and whilst certain markets remain disrupted, the measures introduced have allowed activity to continue in the construction sector.

The cement business posted 20.7 per cent YoY growth on a reported basis and 29.1 per cent at constant scope and exchange rates with sales of EUR938m. When compared with the year-ago period, operational sales in concrete and aggregates increased 16.5 per cent on a reported basis and 22.1 per cent at constant scope and exchange rates to EUR585m.

EBITDA surged 41 per cent to EUR300m in the 1H21 from EUR213m in the 1H20 but by 48.3 per cent at constant scope and exchange rates. As a result the company EBITDA margin edged up from 16.3 to 19.2 per cent over the period.

Consolidated net income leaped from EUR29m in the 1H20 to EUR102m in the 1H21, leading to an increase in net margin from 2.3 to 6.5 per cent in the same period. The group share in net income was EUR94m, up 246 per cent from EUR27m. At constant scope and exchange rates the increase was 256.1 per cent.

Commenting on these figures, Guy Sidos, the group's chairman and CEO, said: "Leveraging the dynamism of its markets, Vicat's financial results continue their progression. The Group once again demonstrates its responsiveness and ability to adapt and confirms the relevance of its industrial and commercial strategy. Focused on its carbon footprint reduction targets, the Group has accelerated the commercialisation of its low-carbon product lines, adapted to the global climate challenge."