Buzzi SpA reported domestic hydraulic binders and clinker sales in Italy up 2.1 per cent in 2023, while the ready-mix concrete output slightly declined 1.4 per cent. The average prices of cement and concrete confirmed their improvement compared to the previous period. Such trend in volumes and prices led to net sales of EUR818.3m, up 12.7 per cent (EUR726.2m in 2022). Ebitda achieved EUR175.2m, more than doubled compared to EUR82m of last year. 

USA
US cement sales closed the year slightly down compared to 2022 down 1.8 per cent, due to the general weakness in demand as well as to some logistical issues along the Mississippi River. Ready-mix concrete volumes, however, confirmed the unfavourable trend in the final months of the year, closing the year down 7.7 per cent, also penalised by the shortage of drivers. On the contrary, selling prices strongly improved compared to the previous year.

Total net sales amounted to EUR1742.7m, up 9.5 per cent compared to EUR1591.8m of 2022, while EBITDA increased from EUR497.5m to EUR639.1m (+28.5 per cent). 

Central Europe
Shipments of hydraulic binders and ready-mix concrete in central Europe closed 2023 sharply declining, by 20.9 and 20.8 per cent, respectively. Selling prices, both for cement and concrete, confirmed the levels already achieved in the first nine months, also during the last quarter, thus marking a substantial improvement compared to the previous year. Overall net sales thus increased from EUR798.8 to EUR872m (+9.2 per cent) and EBITDA improved from EUR120.5m to EUR189.1m (+57 per cent).  

Luxembourg and The Netherlands
Average selling prices in the Low Countries showed a clear strengthening compared to the previous year, which, however, was unable to balance the unfavourable demand. Net sales came in at EUR214.1m down 5.6 per cent compared to the previous year (EUR226.9m), while EBITDA stood at EUR28.1m, clearly improving compared to EUR7m in 2022. 

Eastern Europe
Cement sales volumesin eastern Europe maintained the rather negative dynamics of the first semester, closing the year down 13.1 per cent. Ready-mix concrete sales also contracted (down eight per cent), albeit with a more favourable pace in the second part of the year. The improvement in the price level remained solid in 2023. Net sales increased from EUR141.3m to EUR156.7m (+10.9 per cent) while EBITDA improved from EUR27.2 to EUR38.2m (up 40.4 per cent). 

Czech Republic and Slovakia
Cement sales in the Czech Republic and Slovakia, after the decline in the first half of the year, continued to show a weak trend, closing 16.1 per cent lower, in line with the general market trend. The ready-mix concrete sector, including Slovakia, recorded similar dynamics, both in terms of volumes (down 19 per cent) and selling prices. Consolidated net sales amounted to EUR204.8m (EUR201.2m in 2022, up 1.8 per cent) and EBITDA increased from EUR56.8m to EUR72m (+26.8 per cent).

Ukraine
Ukraine's cement sales volumes in 2023 largely recovered ground (up 32.7 per cent). Ready-mix concrete sales closed the year up (up 7.1 per cent) but far from pre-war levels. Selling prices confirmed a marked strengthening compared to 2022. Net sales stood at EUR85.6m, increasing compared to EUR59.8m achieved in 2022. EBITDA came in at EUR5.6m (it was negative and equal to EUR6.8m in 2022). On 20 June 2023, Buzzi reached an agreement with CRH regarding the sale of its operations in Ukraine. The completion of the transaction is subject to obtaining the required regulatory approvals.

Russia
In 2023 net sales amounted to EUR284.6m, down compared to EUR290.4mof the previous year (down 2.0) and EBITDA decreased from EUR99.6m to EUR96.2m (down 3.4 per cent). 

Mexico
Net sales, referring to 100 per cent of the joint venture, stood at EUR1025m, up 33.4 per cent on the previous year, while EBITDA came in at EUR465.5m, significantly exceeding EUR305.8m achieved in 2022. 

Outlook
The latest forecasts have revised growth estimates for global economic activity slightly upwards in 2024, thanks to the greater resilience demonstrated in several markets, including the US. In the construction sector, a weak development of the residential segment is still expected in 2024, especially in EU countries, while infrastructure investments will remain the main driver of the market, with more evident effects in the US and Italy. Energy prices should continue to ease, although remaining far from pre-crisis levels.

Buzzi expects a weak dynamic also for our sales volumes, mainly in countries such as Germany and the Czech Republic, albeit with less pronounced decline compared to the trend highlighted in 2023.

Published under Cement News