Vicat sees 12% rise in consolidated sales in the 1Q22
Vicat has posted a 12.4 per cent uptick at constant scope and exchange rates in 1Q22 consolidated sales to EUR789m when compared with the equivalent year-ago period. The reported YoY change was 11.6 per cent. The company saw solid sales growth in all regions and higher selling prices. In addition, no impact from the Ukraine-Russia conflict on the group’s activity was noted in the 1Q22.
Commenting on these figures, the Group's Chairman and CEO, Guy Sidos, said: "Vicat’s first-quarter sales performance reflects the dynamism of its markets despite a high basis of comparison. Recent geopolitical trends did not have any direct impact on the Group's business levels during the first quarter, and we recorded solid growth compared with the same period of 2021. All the regions where we operate posted growth in their sales at constant scope and exchange rates. In a global environment providing little visibility in the short term, especially as regards energy costs, we are executing our strategy to improve our production performance, make greater use of secondary fuels and implement a pricing policy tailored to this new environment in pursuit of our operational, environmental and societal targets."
Regional results
Consolidated sales in France increased 3.2 per cent at constant scope and by six per cent as reported YoY to EUR271m in the 1Q21 from EUR255m in the 1Q21. In the company’s French cement business, operational sales increased 7.4 per cent at constant scope in the 1Q22, reflecting a modest pick-up in demand and sharp selling price rise at the start of the year. Concrete and aggregates operational sales were up 6.1 per cent YoY at constant scope on the back of improving price levels and the division’s expansion. Other products and services saw operational sales advance by 7.7 per cent at constant scope in the 1Q22 when compared with the 1Q21.
In Europe (excluding France) consolidated sales were up 9.3 per cent at constant scope YoY but down five per cent as reported to EUR82m in the 1Q22 from EUR87m in the 1Q21 due to the sale of the Créabéton precast business in Switzerland. Cement operational sales advanced 4.1 per cent YoY at constant scope, reflecting a stable demand and increasing sales prices. In concrete and aggregates operational sales edged up 3.7 per cent at constant scope. Concrete volumes declined but were offset by a higher aggregates sales volume. Other products and services enjoyed a 5.8 per cent uptick at constant scope in operational sales.
In the Mediterranean region sales moved sharply by 23.6 per cent (reported) and 68 per cent (constant scope) to EUR53m in the 1Q22 from EUR43m in the 1Q21. In Turkey consolidated sales totalled EUR27m in the 1Q22 while in Egypt they reached EUR26m, representing YoY increases at constant scope of 67.9 and 68.3 per cent, respectively.
In Africa, the group saw a 12.4 per cent reported and a 11.9 per cent rise at constant scope as consolidated sales expanded from EUR80m in the 1Q21 to EUR90m in the 1Q22. The 8.5 per cent increase in cement sales reflected the strong momentum of the Senegal and Mauritania markets that offset the decline in Mali.
In the Americas both USA and Brazilian operations benefitted from a dynamic construction sector and higher selling prices. Total sales increased 27.7 per cent reported and 17.5 per cent at constant scope to EUR181m in the 1Q22 from EUR142m in the 1Q21. In the USA cement operational sales saw an 18.4 per cent hike at constant scope in the 1Q22 while for the concrete business sales increased by 8.2 per cent YoY. Meanwhile, in Brazil operational sales in the cement business surged 25.4 per cent YoY at constant scope to EUR41m while in concrete and aggregates business, sales were booming, up by 53.9 per cent YoY at constant scope to EUR17m in the 1Q22.
The group’s businesses in Asia reported a 12 per cent uptick and an 8.1 per cent increase at constant scope in consolidated sales to EUR112m in the 1Q22 from EUR100m in the 1Q21. Business in India expanded supported by solid demand while prices rose significantly in a high-inflation environment. Consolidated sales increased by 8.1 per cent at constant scope to EUR100m in India during the period. Consolidated sales in Kazakhstan edged up to 7.9 per cent YoY to EUR12m, mainly supported by higher selling prices as volumes temporarily declined over the winter period.
