Buzzi Unicem net sales rise 17% in 1H22
Buzzi Unicem recorded 1H22 net sales at EUR1880m, up 17 per cent compared to the 1H21 and EBITDA at EUR365m, an increase of 3.6 per cent on the 1H21. Favourable foreign exchange rates had an effect of EUR77m on net sales and of EUR19m on EBITDA.
Cement sales volumes dropped by four per cent in the 1H22 to 14,233t, compared to the 14,833t in the 1H21.The overall favourable development recorded in the first three months of the year was followed by a slower second quarter, with the exception of the USA and Germany. The negative changes appeared in Italy and eastern Europe, Ukraine and Russia in particular.
Meanwhile, ready-mix sales were almost stable reaching 5.8Mm3, down 0.2 per cent compared to the previous year. In this business, the positive development in Benelux could not offset the unfavourable changes in eastern Europe, Italy, the US and Germany.
Outlook
“The most recent estimates show that the slowdown in the economic cycle, already observed in spring, may also continue into the second half of 2022, due to the continuous increases in the prices of raw materials, energy and non-energy, and by the increased uncertainty on the development of private investments. These dynamics should also impact activity in the construction sector which, in the second half of the year, is expected to drop, mainly in the areas being most exposed to the procurement risk of energy supplies,” said a Buzzi Unicem press release. “In particular, the situation in Italy is of particular concern, where the cost of electricity reached inconceivable levels, with significant repercussions on energy-intensive companies as well as on construction investments.”
Sales volumes may be penalised in the 2H22 by the contraction in construction activity in Italy and central Europe, due to the attenuation of the push in the residential sector, which bears the higher financing and construction costs, and to some delays in the implementation of infrastructure development plans.
As regards the USA, on the other hand, Buzzi Unicem believes that construction activity, and consequently also the demand for cement, should continue to be robust also during the second half of the year, despite the forecasts on the dynamics of the residential sector indicate a likely weakening.
