Buzzi SpA reports net profit fall of 2% in 1H24
Buzzi SpA has reported a 4.5 per cent drop in net sales to EUR2054m in the 1H24 when compared with net sales of EUR2150m in the 1H23. Cement and clinker sales fell by eight per cent to 12.017Mt from 13.057Mt in the 1H23. Ready-mix concrete sales decreased by 8.8 per cent to 4.664Mm3 from 5.116Mt in the 1H23.
The company's consolidated EBITDA reached EUR553m, down 3.9 per cent on the 1H23 result. Recurring EBITDA declined 4.1 per cent YoY to EUR548m from EUR572m in the 1H23. Consolidated net profit slipped 2.2 per cent YoY to EUR422m from EUR431m in the 1H23.
“In this scenario, the overall cement and ready-mix concrete volumes sold by the group were fairly weak in the second quarter, partly due to unfavourable weather conditions in Europe and the United States during the spring, closing the first six months of the year below the levels of 2023,” said a Buzzi Spa statement. “On the other end, the favourable variance in selling prices helped to limit the decline in turnover.
“The decline [of consolidated cement sales] at the beginning of the year continued into the second quarter, albeit to a lesser extent, due to still weak demand in central Europe and increased rainfall, especially in Italy and the United States. Selling prices continued to contribute favourably, allowing the group to close the half-year with a turnover of EUR2053.6m (-4.5 per cent compared to last year).”
Outlook
Going forward the group expects to see its full-year 2024 guidance confirmed with recurring EBITDA similar to the record one achieved in 2023.
"In the second half of the year, we consider it likely that demand in Italy may stabilise with the
start of the nice weather, mainly supported by resources from the PNRR, in a construction market
still hampered by weak dynamics in the residential sector. In the United States, we expect that,
thanks to improved weather conditions, deliveries may show a more favorable trend in the second
half of the year. In central Europe, in line with the most recent market projections, instead, we
continue to anticipate a rather negative demand development, although at a less pronounced
pace than at the beginning of the year. Looking at eastern Europe, in Poland, the latest published estimates predict a recovery in construction activity across all relevant sectors; we therefore
expect our sales volumes to regain ground, mitigating the contraction recorded in the first part
of 2024. In the Czech Republic, we believe that the recent resilience in demand can be maintained
for the rest of the fiscal year," said the company.
