Buzzi reports 6.4% decline in cement sales for 9M24
Buzzi SpA has announced that cement and clinker sales of the group, in the first nine months of 2024, declined to 18.8Mt (2023: 20.1Mt), a drop of 6.4 per cent. Ready-mix concrete output also contracted by 7.6 per cent, reaching 7.2Mm3 (2023: 7.7Mm3). Consolidated net sales were equal to EUR3184.3m down 3.6 per cent compared to EUR3302.5m in 2023. The foreign exchange effect had a negative impact of EUR31.7 m and changes to the consolidation scope, related to the sale of concrete operations in France, led to a reduction in net sales of EUR4m. LfL, net sales would have decreased by 2.5 per cent.
However, the positive net financial position at the end of the period amounts to EUR1001.0m, versus EUR798m at 2023 year-end and EUR898.4mat the end of June.
Buzzi SpA commented: “In the third quarter, volumes sold showed an unfavourable trend, though they gradually improved compared to the first part of the year. This trend is mainly attributable to the continued weakness of demand in Central Europe, along with a prolonged slowdown in Italy and the United States. Conversely, sales performed positively in Poland and the Czech Republic.”
Regional performances
In Italy the company’s hydraulic binders and clinker sales contracted in the third quarter. Cement and ready-mix concrete volumes thus ended the first nine months with a decline comparable to the first half of the year. However, sales prices moderately strengthened during the quarter, positively contributing to results. Overall, net sales slightly decreased by 1.4 per cent, from EUR616.1 to EUR607.6m.
In the United States cement sales, continued to show a downward trend during the summer months, impacted by increased rainfall and a general slowdown in demand. As a result, the first nine months saw a reduction in volumes and also affected ready-mix concrete sales. Sales prices remained robust, showing solid YoY growth. Net sales totalled EUR1294.8m, down 2.3 per cent compared to EUR1325.7m achieved in the same period of 2023.
In Germany sales volumes, while still weak, showed improved rates in the third quarter, partly due to an easier comparison with the particularly negative 2H23. The decline also persisted in the ready-mix concrete segment. Overall net sales through September declined by 11.1 per cent, reaching EUR599.4m (EUR674.6m in the first nine months of 2023).
In Luxembourg and the Netherlands, Buzzi cement deliveries in the third quarter showed modest growth compared to the same period last year. Net sales in the period under review amounted to EUR133.2m, down (-19.4 per cent) compared to the previous year (2023: EUR165.2m).
In the Czechia, Buzzi cement volumes increased in the third quarter, aligned with positive market trends supported by significant infrastructure projects in the southeast of the country. Consequently, cement deliveries closed slightly up, with sales prices continuing to improve YoY. Net sales stood at EUR154m, down 3.5 per cent compared to the level reached in 2023 (EUR159.6m).
In Poland net sales of the first nine months stood at EUR127.8m, up five per cent compared to the same period of 2023 (EUR121.7m).
In Ukraine, our deliveries of hydraulic binders and clinker experienced some recovery in the first nine months of the year, albeit with decelerating rates compared to the first half. Conversely, ready-mix concrete sales showed a slight decline. Sales prices in local currency demonstrated a marked YoY improvement. Net sales came in at EUR71.3m, up 12.2 per cent (EUR63.6m in 2023).
In Russia, the local management presiding over the business states that sales volumes decreased during the period under review, although the rate of decline eased compared to the first part of the year. Net sales, therefore, closed the first nine months of the year at nearly the same level, standing at EUR226.4m (2023: EUR226.5m), despite the depreciation of the local currency (-9.1 per cent).
In Mexico net sales amounted to EUR786.5m, improving by 2.6 per cent compared to EUR766.4m achieved in 2023.
In Brazil net sales declined by 2.7 per cent in 9M24 in the period under review, from EUR296.9m to EUR288.9m.
