Regulatory News:
Vicat (Paris:VCT):
- Consolidated sales in the nine months to 30 September 2021
of €2,354 million, up +19.7% at constant scope and exchange
rates
- Solid business growth in all regions
- In the third quarter, sales rose +8.5% at constant scope and
exchange rates despite an unfavourable basis of comparison in
certain regions
Consolidated sales
(€ million)
Nine-months 2021
Nine-months 2020
Change (reported)
Change (at constant scope and
exchange rates)
France
824
713
+15.5%
+14.8%
Europe (excluding France)
301
317
-4.8%
+4.5%
Americas
500
471
+6.2%
+14.6%
Asia
320
245
+30.6%
+39.0%
Mediterranean
166
122
+36.3%
+64.3%
Africa
242
198
+22.3%
+22.4%
Total
2,354
2,066
+13.9%
+19.7%
Commenting on these figures, Guy Sidos, the Group’s
Chairman and CEO said: “Vicat’s performance in the nine months to
30 September reflects the dynamism of its markets amid the gradual
recovery from the pandemic. The Group records solid growth when
compared to the same period of 2020, but also compared to 2019
(+14.9% at reported rates). Business trends in the third quarter
held up at a strong level, with the Group’s sales posting another
increase despite an unfavourable basis of comparison in France, the
Americas and India. Against this backdrop, the Group continues to
take financial and industrial measures to achieve its operational,
environmental and social objectives.”
Disclaimer:
- In this press release, and unless indicated otherwise, all
changes are stated on a year-on-year basis (2021/2020), and at
constant scope and exchange rates.
- The alternative performance measures (APMs), such as “at
constant scope and exchange rates”, “operational sales”, “EBITDA”,
“EBIT”, “net debt”, “gearing” and “leverage” are defined in the
appendix to this press release.
- This press release may contain forward-looking statements. Such
forward-looking statements do not constitute forecasts regarding
results or any other performance indicator, but rather trends or
targets. These statements are by their nature subject to risks and
uncertainties as described in the Company’s annual report available
on its website (www.vicat.fr). These statements do not reflect the
future performance of the Company, which may differ significantly.
The Company does not undertake to provide updates of these
statements.
Further information about Vicat is available from its website
(www.vicat.fr).
-----------------------------------------------------------------------------------------------------------------------------------
The Vicat Group’s consolidated sales in the first nine months
of 2021 totalled €2,354 million, up +13.9% on a reported basis
and up +19.7% at constant scope and exchange rates compared with
the same period of 2020. This increase on a reported basis
reflects:
- a negative currency effect of -4.9% given the appreciation in
the euro against all the other currencies to which the Group has
exposure;
- a small negative scope effect resulting from the sale of
Créabéton in Switzerland, partly offset by an acquisition in
Concrete and Aggregates in France;
- and organic growth of +19.7%.
Over the first nine months of the year, the hike in selling
prices fully offset the impact of higher energy costs.
In the third quarter of 2021, the Vicat Group’s
consolidated sales came to €794 million, up +4.2% on a reported
basis and up +8.5% at constant scope and exchange rates compared
with the same period of 2020. This performance confirms the
strength of the Group’s business trends in a quarter when the basis
of comparison was highly unfavourable in France, the Americas and
India. Last year, activity in the third quarter of 2020 was boosted
by a catch-up in these regions after the pandemic had taken a heavy
toll in the first six months of 2020. Against this backdrop,
selling prices moved significantly higher in the third quarter of
2021, partly offsetting higher energy costs during the period.
1. Analysis of consolidated sales in the first nine months of
2021 by geographical region
1.1. France
(€ million)
Nine-months 2021
Nine-months 2020
Change (reported)
Change (at constant scope and
exchange rates)
Sales
824
713
+15.5%
+14.8%
The Group’s performance in France over the first nine months of
the year improved substantially, boosted by significant growth in
demand, compared not only with 2020 but also with 2019. Although
the pandemic’s effects again dragged down performance, the
favourable basis of comparison for sales in the first six months of
the year, the government measures and the steps taken by the Group
enabled it to seize all the growth opportunities available and to
report a strong performance across all its business areas in the
first nine months of the year. In the third quarter, sales declined
-3.3% at constant scope. This decline reflects an unfavourable
basis of comparison reflecting the exceptionally strong recovery in
the same period of 2020, which was only partially offset by a still
highly supportive industry environment.
- In the Cement business, operational sales rose +10.8% at
constant scope over the period as a whole. This performance is the
result of a dynamic industry environment in all the Group’s markets
and a more favourable basis of comparison than in the first six
months of 2020, which helped to make up for the expected volume
contraction in the third quarter. Amid these supportive conditions,
selling prices and volumes rose significantly during the first nine
months of the year. In the third quarter, operational sales
declined -9.3% at constant scope.
- The operational sales recorded by the Concrete & Aggregates
business rose +19.5% at constant scope. This trend was underpinned
by firmer activity trends in concrete and in aggregates. Selling
prices moved higher in aggregates and were stable in concrete. In
the third quarter, operational sales grew +2.6% at constant scope
despite an unfavourable basis of comparison.
- In the Other Products & Services business, operational
sales advanced +19.9% at constant scope over the period. In the
third quarter, operational sales rose +1.8% at constant scope.
1.2 Europe (excluding France)
(€ million)
Nine-months 2021
Nine-months 2020
Change (reported)
Change (at constant scope and
exchange rates)
Sales
301
317
-4.8%
+4.5%
The Swiss market, which was barely affected by the pandemic in
2020, recorded growth at the start of the year. Italy benefited
from a highly favourable basis of comparison given the very
challenging pandemic and macroeconomic situation in 2020. It
delivered solid growth throughout the period thanks to strong
demand. In the third quarter, business trends in Europe remained
firm both in Switzerland and in Italy, with consolidated sales up
+3.2% at constant scope and exchange rates.
In Switzerland, the Group’s consolidated sales rose +3.6%
at constant scope and exchange rates (down -6.0% on a reported
basis). In the third quarter, consolidated sales increased by +3.2%
at constant scope and exchange rates. On a reported basis, they
fell -17.8% owing to the deconsolidation of Créabéton, the precast
business sold on 30 June 2021.
- In the Cement business, operational sales grew +2.8% at
constant scope and exchange rates thanks to the healthy market
performance. In the third quarter, the operational sales recorded
by this business declined by -3.2% at constant scope and exchange
rates.
- In the Concrete & Aggregates business, operational sales
declined -5.1% at constant scope and exchange rates as a result of
less favourable weather conditions at the beginning of the year. In
the third quarter, operational sales declined by -2.3% at constant
scope and exchange rates.
- In the Other Products and Services business, operational sales
rose by +10.2% at constant scope and exchange rates. Third-quarter
operational sales rose +7.6% thanks to an encouraging level of
deliveries by the Rail business to the state operator and a
favourable product mix. On a reported basis, business declined
-49.0% largely as a result of the sale of precast business on 30
June 2021.
In Italy, consolidated sales advanced by +25.4%. Business
trends and selling prices moved significantly higher throughout the
period. In the third quarter, the basis of comparison was
significantly less supportive than it was in the first six months,
but the industry environment remained upbeat, with selling prices
continuing to move upwards. As a result, consolidated sales rose
+4.9%.
1.3 Americas
(€ million)
Nine-months 2021
Nine-months 2020
Change (reported)
Change (at constant scope and
exchange rates)
Sales
500
471
+6.2%
+14.6%
In the United States and in Brazil, construction sector trends
remain upbeat, providing support for price increases. In the third
quarter, consolidated sales rose +3.2% at constant scope and
exchange rates despite a highly unfavourable basis of comparison
after the exceptionally strong business upswing recorded in the
same period of 2020.
In the United States, the macroeconomic and sector
environment again remained supportive throughout the period. Trends
in the second and third quarter were affected by an unfavourable
basis of comparison in California and poor weather conditions in
the South-East region. Nonetheless, consolidated sales recorded an
increase at constant scope and exchange rates of +8.4% in the first
nine months of the year and of +3.2% in the third quarter.
The construction of the new kiln line at the Ragland plant
(Alabama) made progress during the year, and it is scheduled to
enter service in the first quarter of 2022. The new installation
will help meet the strong market demand by increasing the plant’s
capacity and sharply reducing production costs, and it will help
lower the Group’s CO2 emissions.
- In the Cement business, operational sales rose +2.0% at
constant scope and exchange rates over the first nine months of the
year thanks to upbeat trends in the markets in which the Group
operates and a rise in selling prices over the period. In the third
quarter, operational sales declined by -3.5% at constant scope and
exchange rates. The downturn in business during the quarter was the
result of an unfavourable basis of comparison in 2020 in California
and poor weather conditions in the South-East region. Selling
prices rose in both regions during the quarter.
- In the Concrete business, operational sales rose +13.7% at
constant scope and exchange rates as further upbeat market
conditions provided a boost, especially in the residential and
commercial sectors. Against this backdrop, selling prices moved
significantly higher. Business trends in the third quarter were
again solid despite the storms in the South East region.
Operational sales moved up +11.3% at constant scope and exchange
rates, supported by a steady increase in selling prices and
delivery volumes.
In Brazil, consolidated sales totalled €136 million, up
+34.4% at constant scope and exchange rates. In the third quarter,
consolidated sales rose +10.4% at constant scope and exchange rates
despite the highly unfavourable basis of comparison arising from
the dynamic sales performance of 2020.
- In the Cement business, operational sales totalled €111
million, up from €93 million in the first nine months of 2020 and
up +33.3% at constant scope and exchange rates. This performance
reflects the dynamic market conditions in which the Group operates
and positive pricing trends. In the third quarter, operational
sales rose +6.2% at constant scope and exchange rates against the
unfavourable basis of comparison, supported by the increase in
selling prices.
- In the Concrete & Aggregates business, operational sales
were €39 million, an increase of +44.1% at constant scope and
exchange rates, mirroring trends in the Cement business. The
improvement in market conditions was accompanied by a rise in
prices, both in concrete and in aggregates. In the third quarter,
operational sales rose by +7.4% at constant scope and exchange
rates on the back of a solid increase in selling prices and sales
volumes in concrete.
1.4 Asia (India and Kazakhstan)
(€ million)
Nine-months 2021
Nine-months 2020
Change (reported)
Change (at constant scope and
exchange rates)
Sales
320
245
+30.6%
+39.0%
The Asia region, and particularly India, was again severely
affected by the pandemic, but to a far lesser extent than in 2020.
Contrary to early 2020, the measures taken by the Indian government
to address the situation enabled the Group to continue
operating.
In the third quarter, business trends remained brisk across the
region, with consolidated sales up +20.1% at constant scope and
exchange rates despite a high basis of comparison.
Business in India grew sharply throughout the period,
supported by strong demand supported by government contracts. As a
result of these conditions, prices held up well during the period
and the Group posted consolidated sales of €268 million in the
first nine months of 2021, up +45.7% at constant scope and exchange
rates. In the third quarter, sales rose +22.1% at constant scope
and exchange rates despite an unfavourable basis of comparison.
Consolidated sales in Kazakhstan came to €52 million, up
+13.4% at constant scope and exchange rates. This performance was
achieved through further expansion in the Group’s business in its
domestic market, which helped to make up for the fall in exports.
Given this favourable geographical mix and the dynamic trends in
the Kazakh market, prices recorded a significant increase. In the
third quarter, sales rose +12.6%, with the hike in prices making up
for a slight decline in sales volumes.
1.5 Mediterranean (Egypt and Turkey)
(€ million)
Nine-months 2021
Nine-months 2020
Change (reported)
Change (at constant scope and
exchange rates)
Sales
166
122
+36.3%
+64.3%
The Mediterranean region remains affected by a downbeat
macroeconomic and sector situation with reduced visibility,
although the environment and market conditions are gradually
improving in both Turkey and Egypt. The trend carried through into
the third quarter, with consolidated sales rising +52.9% at
constant scope and exchange rates.
In Turkey, while the macroeconomic and sector environment
remains uncertain, the recovery in the construction market remains
on track. Consolidated sales in the first nine months of 2021
totalled €113 million, up +63.2% at constant scope and exchange
rates. In the third quarter, the environment continued to improve,
with consolidated sales rising by +51.4% at constant scope and
exchange rates.
- In the Cement business, the firmer trends observed since the
end of 2020 carried through into the first nine months of this
year. As a result, business trends and selling prices posted a
significant increase compared with the same period of 2020, paving
the way for an increase in operational sales of +64.6% at constant
scope and exchange rates. Operational sales moved up +52.7% at
constant scope and exchange rates in the third quarter.
- In the Concrete & Aggregates business, operational sales
rose +62.2% at constant scope and exchange rates. The business was
boosted by the ongoing improvement in market and weather conditions
in the first nine months of the year supporting higher prices.
Operational sales moved up +58.4% at constant scope and exchange
rates in the third quarter.
In Egypt, consolidated sales totalled €53 million, up
+67.3% at constant scope and exchange rates. The market regulation
agreement between the Egyptian government and all producers entered
force in July 2021. It paved the way for an improvement in selling
prices in the domestic market during the third quarter as
consolidated sales increased by +57.5% at constant scope and
exchange rates, with selling prices well above the levels recorded
in the third quarter of 2020.
1.6 Africa
(€ million)
Nine-months 2021
Nine-months 2020
Change (reported)
Change (at constant scope and
exchange rates)
Sales
242
198
+22.3%
+22.4%
In Africa, the Group continues to reap the benefit of favourable
sector demand despite the pandemic, backed up by improvements in
performance at the Rufisque plant and by the ramp-up of the new
mill in Mali. Sales moved up +28.9% at constant scope and exchange
rates in the third quarter.
- In the Cement business, operational sales in the Africa region
grew +23.3% at constant scope and exchange rates, with a boost
provided by the dynamic trends in the West African market,
especially in Senegal, and the ramp-up in the new mill in Mali.
Selling prices in Senegal were consistently lower than in the
year-earlier period given the introduction of the new tax on cement
in May 2020. It should be noted that this unfavourable basis of
comparison came to an end in the second quarter of 2021. Pricing
conditions in Mali and Mauritania are positive. In the third
quarter, operational sales moved up +31.2% at constant scope and
exchange rates.
- The Aggregates business in Senegal recorded consolidated sales
of €21 million, up +18.0% at constant scope and exchange rates over
the period as a result of the gradual resumption of major
government projects. In the third quarter, sales rose +21.3% at
constant scope and exchange rates.
2. Financial position at 30 September 2021
The dynamic business trends recorded across the various markets,
the positive trend in selling prices and a persistently tight grip
on costs helped to offset the rise in energy costs throughout the
period. Operating profitability improved significantly over the
first nine months of the year.
At 30 September 2021, the Group’s shareholders’ equity was
€2,544 million, up from €2,381 million at 30 September 2020. The
Group’s net debt came to €1,269 million, compared with €1,265
million at 30 September 2020.
3. Outlook for 2021
Over 2021 as a whole, the Group anticipates an increase in its
full-year EBITDA based on its performance in the first nine months
of 2021 and the following factors:
- The dynamic market conditions in which the Group is operating,
with a significant rise in sales volumes
- Positive trends in average prices
These factors will help to offset:
- Unfavourable currency effects. The Group wishes to reiterate
that its currency risk is predominantly a currency translation
risk;
- A significant increase in energy costs in the second half,
which are expected to increase by around +14% over the year as a
whole, compensated by a marked increase in selling prices over the
full year.
During 2021, the Group is keeping up its investment drive
focusing chiefly on:
- The construction of the new kiln at the Ragland plant in the
United States;
- A drive to incrementally boost capacity at production
facilities in India and to invest in new terminals to expand its
market and lower logistics costs;
- And, lastly, the ramp-up in projects to meet the carbon
footprint reduction targets and in line with its environmental
actions.
Accordingly, capital expenditure committed to production
facilities is expected to be higher than in 2020 at around €410
million, with the Group adjusting the pace of its investment
projects to its cash generation trends.
The Group is issuing the following guidance about the
performance expected over the full year in the various countries in
which it operates. It wishes to make clear that these trends are
intimately linked to developments in the pandemic crisis and the
latter’s impact on each of them:
- In France, activity levels are expected to remain on a growth
trajectory over the year as a whole. The Group expects less dynamic
growth in the second half than in the first, given the very strong
recovery seen in the second half of 2020;
- In Switzerland, the Cement and the Concrete & Aggregates
businesses should reap the benefit of upbeat conditions in the
construction sector. The Other Products & Services business
will of course be affected by the deconsolidation of the Precast
business, following completion of the latter’s disposal on 30 June
2021;
- In the United States, activity levels are expected to keep
growing as a result of higher selling prices, despite volumes
coming up against an unfavourable basis of comparison in the third
quarter. The roll-out of the economic stimulus plan presented by
the new US administration is unlikely to have much of an impact
until 2022;
- In Brazil, the environment is expected to remain supportive.
That said, given the basis of comparison for the second half of
2020, the Group expects its performance there to stabilise
progressively in 2021;
- In India, subject to developments in the pandemic, the Group
expects to reap the benefit of the market growth forecast in 2021.
Amid these supportive conditions, pricing trends are expected to be
positive, but volatile;
- In Kazakhstan, performance in 2020 provides a high basis of
comparison, but market conditions are forecast to remain favourable
nonetheless;
- In Turkey, given the stabilisation in the industry environment
and the stirrings of a recovery in Turkey seen in 2020, the
situation is expected to continue improving gradually in the second
half, despite the persistent currency weakness;
- In Egypt, the uptrend in volumes and selling prices from the
second quarter onwards is likely to make further progress in the
new regulatory framework established for the industry;
- In West Africa, business trends are expected to remain strong
in Cement. The basis of comparison for prices will be more
favourable in the second half and is likely to be supported by
further growth in sales volumes. The Aggregates business in Senegal
is likely to continue its recovery;
Conference call
To accompany the publication of its nine-month 2021 sales, the
Vicat group is organising a conference call in English on 4
November 2021 at 3pm CET (2pm London time and 9am New
York time).
To take part in the conference call live, dial one of the
following numbers:
France: +33 (0)1 70 37 71 66 United Kingdom:
+44 (0)33 0551 0200 USA: +1 212 999 6659
You may also access a live audio webcast of the conference,
together with the presentation, on the Vicat website or simply by
clicking here. A replay of the conference call will be immediately
available for streaming via the Vicat website or by clicking
here.
Next report:
2021 results on 15 February 2022 after the market close.
About Vicat
The Vicat Group has over 9,000 employees working in three core
divisions, Cement, Concrete & Aggregates and Other Products
& Services, which generated consolidated sales of €2.805
billion in 2020. The Group operates in twelve countries: France,
Switzerland, Italy, the United States, Turkey, Egypt, Senegal,
Mali, Mauritania, Kazakhstan, India and Brazil. Some 64% of its
sales are generated outside France.
The Vicat Group is the heir to a family industrial tradition
dating back to 1817, when Louis Vicat invented artificial cement.
Founded in 1853, the Vicat Group now operates three core lines of
business: Cement, Ready-Mixed Concrete and Aggregates, as well as
related activities.
About the Louis Vicat Foundation
Created in 2017 on the occasion of the bicentenary of the
invention of artificial cement, the Foundation's objectives are:
the promotion of scientific and technical culture, the preservation
and enhancement of heritage, education and solidarity. To this end,
in 2020 the Foundation carried out a series of inclusive actions
for the benefit of people with disabilities and those far from
employment. The year 2021 will be the Year of Women.
Vicat group – Financial data – Appendix
Definition of alternative performance measures
(APMs):
- Performance at constant scope and exchange rates is used
to determine the organic growth trend in P&L items between two
periods and to compare them by eliminating the impact of exchange
rate fluctuations and changes in the scope of consolidation. It is
calculated by applying exchange rates and the scope of
consolidation from the prior period to figures for the current
period.
- A geographical (or a business) segment’s operational
sales are the sales posted by the geographical (or business)
segment in question less intra-region (or intra-segment)
sales.
- Value-added: value of production less consumption of
materials used in the production process.
- Gross operating income: value-added, less staff costs,
taxes and duties (other than on income and deferred taxes) plus
operating subsidies.
- EBITDA (earnings before interest, tax, depreciation and
amortisation): sum of gross operating income and other income and
expenses on ongoing business.
- EBIT: (earnings before interest and tax): EBITDA less
net depreciation, amortisation, additions to provisions and
impairment losses on ongoing business.
- Cash flow from operations: net income before net
non-cash expenses (i.e., predominantly depreciation, amortisation,
additions to provisions and impairment losses, deferred taxes,
gains and losses on disposals and fair value adjustments).
- Free cash flow: net operating cash flow after deducting
capital expenditure net of disposals.
- Net debt represents gross debt (consisting of the
outstanding amount of borrowings from investors and credit
institutions, residual financial liabilities under finance leases,
any other borrowings and financial liabilities excluding options to
sell and bank overdrafts), net of cash and cash equivalents,
including remeasured hedging derivatives and debt.
- Gearing is a ratio reflecting a company’s financial
structure calculated as net debt/consolidated equity.
- Leverage is a ratio reflecting a company’s
profitability, which is calculated as net debt/consolidated
EBITDA.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211103005982/en/
Investor relations: Stéphane Bisseuil: Tel.: +33 1 58 86
86 05 stephane.bisseuil@vicat.fr
Press: Marie-Raphaelle Robinne Tel.: +33 (0) 4 74 27 58
04 marie-raphaelle.robinne@vicat.fr
Vicat (EU:VCT)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024
Vicat (EU:VCT)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024