Regulatory News:
Vicat (Paris:VCT):
Solid operating performance amid exceptional
conditions
- Sales growth of +5.5% at constant scope and exchange
rates
- Increase in operational profitability: EBITDA* up +10.1% and
EBIT** up +17.5% at constant scope and exchange rates
- Decrease in net financial debt of -€88 million to €1,202
million and leverage ratio*** at 2.16x vs. 2.45x at 31 December
2019
Audited condensed consolidated income statement:
(€ million)
2020
2019
Change
(reported)
Change (at constant scope and
exchange rates)
Consolidated sales
2,805
2,740
+2.4%
+5.5%
EBITDA**
557
526
+5.9%
+10.1%
EBITDA margin (%)
19.9%
19.2%
EBIT***
298
267
+11.7%
+17.5%
EBIT margin (%)
10.6%
9.7%
Consolidated net income
172
160
+7.7%
+16.3%
Net margin (%)
6.1%
5.8%
Net income, Group share
156
149
+4.8%
+10.7%
Cash flow
461
425
+8.3%
+12.9%
*EBITDA: sum of gross operating income and other income and
expenses on ongoing business. *EBIT: EBITDA less net depreciation,
amortisation and provisions on ongoing business. ***Leverage ratio:
net debt/consolidated EBITDA
Commenting on these figures, Guy Sidos, the Group’s
Chairman and CEO said: “Thanks to our employees’ tremendous efforts
and commitment, the Vicat group strengthened its position amid the
unprecedented current pandemic situation. Our resilience and
flexibility allowed us to make organizational changes in order to
reconcile our competing imperatives of keeping everyone safe and
healthy, unlocking savings and making rapid adjustments, such as
relocating our Paris head office to L’Isle d’Abeau in the
Auvergne-Rhône-Alpes region. Likewise, we made improvements to
Vicat’s governance and stepped up our environmental and digital
transformation programmes. Given the strength of our cash
generation, we were able to resume key productivity investment
programmes for the future. Despite the adversity we faced, our
teams across all our various regions successfully delivered higher
production efficiency levels and met market demand
cost-effectively, paving the way for a solid increase in the Vicat
group’s results.”
Disclaimer:
- In this press release, and unless indicated otherwise, all
changes are stated on a year-on-year basis (2020/2019), and at
constant scope and exchange rates.
- 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).
1. Income statement
1.1. Consolidated income
statement
Performance in 2020 was significantly disrupted by the Covid-19
pandemic. The Group’s business activities in the 12 countries in
which it operates were affected to different extents, depending on
the political response to the pandemic situation. India, France and
Italy recorded a sharp fall in their sales in the first half
followed by a rebound from June. The -3.2% decline in consolidated
sales in the first six months was erased by a +13.8% rise at
constant scope and exchange rates in the second half of the year.
The Vicat Group’s full-year consolidated sales came to €2,805
million, representing an increase of +2.4% on a reported basis or
+5.5% at constant scope and exchange rates compared with 2019.
The key factors driving consolidated sales were:
- a +0.7% scope effect, corresponding to a positive impact of
+€20 million owing in particular to the consolidation of Ciplan in
Brazil over the full year and small acquisitions in the Concrete
& Aggregates business in Europe;
- an unfavourable currency effect of -3.7%, representing a
negative impact of -€105 million over the full year as a result of
euro appreciation;
- and, lastly, strong organic sales growth (+5.5%) across all
regions, except for France.
The Group’s consolidated EBITDA came to €557 million, up
+5.9% on a reported basis and up +10.1% at constant scope and
exchange rates. The EBITDA margin widened by 0.7 points to 19.9%.
The reported EBITDA performance was the product of very minor
positive scope effects (less than +€2 million), unfavourable
currency effects of almost -€24 million and, lastly, solid organic
growth of +€53 million.
At constant scope and exchange rates, the EBITDA increase was
driven by:
- Business growth despite the impact of the pandemic crisis;
- Benefits of the cost-cutting plan and lower energy costs,
representing a positive impact of around €57 million;
- Broadly firmer selling prices, except in the Mediterranean
region;
- A very sharp improvement in the EBITDA generated in the
Americas (especially in Brazil) and Asia;
- A significant increase in EBITDA in Africa, supported by the
improvement in production performance in Senegal and the ramp-up in
the new grinder in Mali amid favourable volume and pricing
conditions.
These positive factors helped to offset:
- A moderate contraction in the EBITDA generated in France as a
result of the pandemic’s impact across all business activities in
the first half;
- The stoppage of activity during 30 days in Italy and 33 days in
India
- The impact of the downbeat macroeconomic and competitive
environment in Turkey and Egypt;
- An unfavourable base of comparison arising from a non-recurring
gain of €6 million in Brazil.
EBIT totalled €298 million compared with €267 million in
2019. That represented an increase of +11.7% on a reported basis
and of +17.5% at constant scope and exchange rates. The EBIT margin
on consolidated sales improved by almost one point to 10.6%. This
increase reflects a further improvement in operating margins across
the Americas, Africa and Asia. The clear rebound in activity levels
in France from the third quarter onwards was not sufficient to make
up entirely for the decline in the first six months. Lastly, given
the factors presented above, the Europe (excluding France) and
Mediterranean regions experienced a fall in their operating margins
over the period as a whole.
Operating profit rose +6.3% on a reported basis and
+13.4% at constant scope and exchange rates. This performance
reflects the improvement in EBITDA and EBIT, a €6 million gain
resulting from a tax amnesty in Brazil and, lastly, -€19 million
related to the write down of assets in Egypt.
The +€3 million improvement in net financial expense was
largely attributable to a €2 million gain as a result of a tax
amnesty and reflects the tight grip kept on the Group’s overall
debt in 2020 amid the pandemic situation.
Tax expense rose by +€7 million as a result of the higher
pre-tax income. The effective tax rate was stable at 30.7% compared
with 30.6% in 2019. The stable tax rate reflects a slight reduction
in rates in France and Switzerland, as well as deferred tax income
linked to the extension of the rider to the mining agreement in
Senegal. These positive factors helped to offset the unfavourable
impact of the larger loss not subject to tax recorded in Egypt, the
end to the period of tax exemptions in Kazakhstan, and a negative
adjustment to deferred tax assets in India given the reduction in
the tax rate paid by Kalburgi Cement.
Consolidated net income totalled €172 million, up +7.7%
at constant scope and exchange rates and up +16.3% on a reported
basis despite the write down of assets in Egypt. The improved
performance in Brazil and India gave rise to a significant increase
in the share attributable to minority shareholders. Accordingly,
net income, Group share rose +10.7% at constant scope and exchange
rates and +4.8% on a reported basis to €156 million.
Cash flow came to €461 million, up +8.3% on a reported
basis and up +12.9% at constant scope and exchange rates,
reflecting the sharp increase in EBITDA generated over the
year.
On the basis of these full-year 2020 results and confident in
the Group’s ability to pursue further development, the Board of
Directors decided at its meeting on 12 February 2021 to propose
shareholders at the General Meeting to be held on 9 April 2021 to
maintain the dividend at €1.50 per share.
1.2. Income statement analysed by
geographical region
1.2.1. Income statement, France
(€ million)
2020
2019
Change
(reported)
Change (at constant scope and
exchange rates)
Sales
963
987
-2.4%
-3.5%
EBITDA
171
182
-6.5%
-7.3%
EBIT
92
102
-9.4%
-9.8%
During the year, the pandemic had a significant impact on the
Group’s performance in France. Following a near total shutdown in
mid-March, the situation gradually improved, and the Group returned
to solid business growth again in the second half. Even so, this
was not sufficient to offset the impact of the initial lockdown on
the Group’s activities during the first half of 2020. Accordingly,
EBITDA declined over the period as a whole, with the positive
impact of lower energy costs and the benefits of the cost-cutting
plan failing to offset the downturn in activity levels and certain
exceptional costs incurred by the Cement business.
- In the Cement business, operational sales rose +2.8% over the
year as a whole. After the sharp decline in the first half,
activity levels bounced back very strongly in the second half.
Volumes remained robust comforted by exports and selling prices
rose. As a result, the EBITDA recorded by the business fell back
-3.3% over the year. The decrease reflects the sharp contraction in
EBITDA generated in the first half, offset to some extent by the
rebound in EBITDA during the second half.
- In the Concrete & Aggregates business, operational sales
moved -6.5% lower at constant scope owing to a volume decline,
which was partly offset by the impact of higher selling prices. As
a result of these factors, the EBITDA generated by the business in
France was down -15.5% at constant scope compared with 2019.
- In the Other Products & Services business, operational
sales dropped -2.7% over the period. The EBITDA recorded by the
business fell back -2.5%.
1.2.2 Income statement for Europe excluding France
(€ million)
2020
2019
Change
(reported)
Change (at constant scope and
exchange rates)
Sales
423
401
+5.6%
+1.2%
EBITDA
97
96
+1.1%
-2.8%
EBIT
55
58
-5.5%
-9.1%
Activity levels in Europe (excluding France) over 2020 reflect
contrasting trends in Switzerland and Italy. The Swiss market was
only barely affected by the pandemic during the year, while Italy
experienced a very challenging pandemic and macroeconomic
situation. As a result, the EBITDA margin on consolidated sales
slipped 1.1 points to 23.0%.
In Switzerland, the Group’s consolidated sales rose by
+6.5% on a reported basis and by +1.8% at constant scope and
exchange rates. EBITDA rose +1.8% on a reported basis but fell
-2.2% at constant scope and exchange rates.
- In the Cement business, operational sales rose +4.2% at
constant scope and exchange rates. Activity levels remained well
oriented throughout the year despite the Covid-19 related
constraints, supported by several major projects, which helped to
maintain the Group’s market share and raise selling prices. The
EBITDA generated by the business improved +3.2% at constant scope
and exchange rates over the year as a whole.
- In the Concrete & Aggregates business, operational sales
rose +5.5% at constant scope and exchange rates over the year.
Selling prices came under pressure in concrete as a result of
fiercer competition, but moved higher in aggregates. Note that the
aggregates business incorporates the recycling and landfill
activities, which performed well in 2020. Taking these factors into
account plus an unfavourable base of comparison resulting from the
sale of land in the final quarter of 2019, the EBITDA generated by
the business declined -4.3% at constant scope and exchange rates
over the year.
- The Precast business posted a -2.6% decline in operational
sales at constant scope and exchange rates. The competitive
environment remained very unfavourable for consumer products,
particularly as a result of imports. The rail business picked up
only very gradually, with orders lagging below normal levels. As a
result of these factors, EBITDA fell back -27.4% at constant scope
and exchange rates.
In Italy, consolidated sales declined -10.5% over the
full year as a result of the total shutdown of operations for 30
days during the second quarter. However, selling prices firmed up
against a backdrop of significantly lower volumes. As a result,
EBITDA fell -34.4% compared with 2019.
1.2.3 Income statement for the Americas region
(€ million)
2020
2019
Change (reported)
Change (at constant scope and
exchange rates)
Sales
636
589
+8.0%
+17.2%
EBITDA
141
115
+22.6%
+36.3%
EBIT
86
57
+52.7%
+73.5%
Despite a concerning pandemic situation in both
the United States and Brazil, activity levels continued to move in
the right direction thanks to the economic measures implemented in
response to the pandemic. As a result of these factors, the
Americas region’s sales and EBITDA improved significantly. The
EBITDA margin on consolidated sales picked up to 22.3% from 19.6%
in 2019.
In the United States, the construction sector was rapidly
recognised as “essential” by the authorities and thus permitted to
continue operating. Accordingly, infrastructure and residential
markets continued to grow thanks to the economic stimulus measures.
The Group’s consolidated sales in the United States rose +5.7% on a
reported basis and +7.7% at constant scope and exchange rates.
EBITDA came to €99 million over the full year, up +14.0% on a
reported basis and up +16.2% at constant scope and exchange rates.
The investment in a new 5,000-tonne/day kiln at the Ragland plant
in Alabama, launched during 2019, continued during the year and is
scheduled to enter service in the first half of 2022. This new
installation will increase the plant’s existing capacity,
significantly reduce production costs and actively help the Group
to meet its CO2 emission reduction targets.
- In the Cement business, operational sales grew +10.0% at
constant scope and exchange rates. This performance was fuelled by
solid volume growth, particularly in California. Average selling
prices rose over the year as a whole, reflecting the full impact of
the hikes introduced in 2019 and the increase introduced in
California during the third quarter. Against this backdrop, the
EBITDA generated by the business grew +7.3% at constant scope and
exchange rates.
- In the Concrete business, operational sales rose +4.2% at
constant scope and exchange rates, as the business is more
sensitive to the pandemic-related constraints, volumes dipped
slightly over the year as a whole. Conversely, selling prices rose
sharply. Overall, the EBITDA generated by the business rose +57.7%
at constant scope and exchange rates over the year.
In Brazil, where certain regions have been hit harder by
the pandemic, the Group reaped the benefit of fairly favourable
industry conditions supported by the government’s economic
incentives, low interest rates, all of which helped underpin the
residential sector’s development. The Group took full advantage of
its highly efficient production facilities and the operational
improvements made following the acquisition of Ciplan.
Consolidated sales generated in Brazil came to €156 million, up
+15.7% on a reported basis and up +48.9% at constant scope and
exchange rates, reflecting the depreciation in the Brazilian real
against the euro. EBITDA recorded solid growth to €43 million, up
from €29 million in 2019.
- In the Cement business, operational sales came to €170 million,
up from €143 million in 2019. Given the significant fall in energy
costs, plus the favourable activity trends, EBITDA posted a
significant increase on its 2019 level.
- In the Concrete & Aggregates business, operational sales
came to €42 million, up +35.9% at constant scope and exchange
rates. The EBITDA generated in 2020 moved up +37.8% at constant
scope and exchange rates.
1.2.4 Income statement for the Asia region (India and
Kazakhstan)
(€ million)
2020
2019
Change (reported)
Change (at constant scope and
exchange rates)
Sales
348
375
-7.1%
+0.1%
EBITDA
103
89
+15.9%
+24.9%
EBIT
68
54
+26.4%
+36.4%
The Asia region was severely affected by the pandemic crisis,
which led to a significant deterioration in the macroeconomic and
sector environment in the first half, ahead of a clear rebound in
activity levels in the second half. Amid these conditions, the
Group focused on implementing cost-cutting measures without
compromising its ability to seize new market opportunities.
India has been worst hit by the pandemic of all the
countries in the Group’s geographical portfolio. The strict
lockdown measures imposed by the government led to the complete
shutdown of the Group’s manufacturing facilities for over a month
during the first half. The lockdown measures also had a very
negative impact on the resumption of construction projects. These
were affected by a labour shortage preventing a more rapid and
stronger pick-up in the sector until the end of the third quarter.
Once the situation returned to normal in the final quarter, the
government subsidies supporting the economy and the robust level of
activity in the construction sector in particular offset the
negative effects of the pandemic. As a result, the Group recorded
€286 million in consolidated sales in 2020, an almost stable
performance at constant scope and exchange rates (down -0.5%). The
contraction in volumes sold was offset by a solid increase in
average selling prices.
As a result of these factors and the cost reduction plan, EBITDA
rose +35.2% at constant scope and exchange rates over the full year
to €82 million.
In Kazakhstan, after a sharp increase in activity in the
first quarter, supported by export markets in particular, the
operating environment deteriorated in the second and in part of the
third quarter as a result of the pandemic crisis, before volume
growth returned from September onwards. Over the full year, volumes
remained stable. Selling prices declined slightly over 2020 as a
whole despite a firmer trend in the second half. As a result,
consolidated sales rose by +3.1% at constant scope and exchange
rates.
EBITDA declined -3.8% at constant scope and exchange rates to
€20 million in 2020.
1.2.5 Income statement for the Mediterranean region (Egypt
and Turkey)
(€ million)
2020
2019
Change
(reported)
Change (at constant scope and
exchange rates)
Sales
173
171
+1.1%
+19.1%
EBITDA
-11
-4
n.s.
n.s.
EBIT
-29
-23
n.s.
n.s.
Macroeconomic and competitive conditions remained challenging in
the Mediterranean region, with selling prices coming under
significant pressure in Turkey and Egypt. Taking these factors and
also higher energy costs in the region into account, the Group
recorded a negative EBITDA of -€11 million in 2020.
In Turkey, sales totalled €124 million, up +19.4% at
constant scope and exchange rates, demonstrating the Group’s
healthy resilience in a tough environment. The EBITDA generated in
Turkey came to €8 million, down -24.8% at constant scope and
exchange rates. After a breakeven EBITDA performance in the first
half, trends improved significantly during the second half, which
again brought solid growth at constant scope and exchange
rates.
- In the Cement business, operational sales rose +19.5% at
constant scope and exchange rates. After a contraction in
operational sales in the first quarter, solid growth returned over
the next three quarters, supported by an upturn in volumes that
offset the impact of the fall in average selling prices. Taking
these factors and also higher energy costs into account, the EBITDA
generated by the business dropped -18.6% at constant scope and
exchange rates.
- The operational sales recorded by the Concrete & Aggregates
business rose +23.4% at constant scope and exchange rates due to
favourable trends in volumes and selling prices. Accordingly, the
business contributed a breakeven EBITDA performance in 2020.
In Egypt, consolidated sales totalled €49 million, up
+18.2% at constant scope and exchange rates. The pandemic has
exacerbated the effects of what was already an unfavourable
situation, with macroeconomic trends barely improving, a freeze on
new building permits between May and November 2020, severe
logistical constraints and fierce competition. As a result, volumes
recorded a fairly significant increase over the year as a whole,
albeit without moving above a fairly low level. Selling prices
continued to fall as a result of the pressure created by the
Egyptian Army’s new plant, persisting at levels that were too low
to achieve renewed profitability. Accordingly, the Group stepped up
its maintenance efforts at both kilns during the final quarter in a
bid to raise its operating performance. The Group recorded an
EBITDA loss of -€19 million over the full year, compared with a
loss of -€17 million in 2019.
Lastly, the Group decided to write down its Egyptian assets by
€19 million given the persistently unfavourable macroeconomic and
industry conditions and the prospects of a slow improvement in the
situation.
1.2.6 Income statement for Africa
(€ million)
2020
2019
Change
(reported)
Change (at constant scope and
exchange rates)
Sales
262
217
+20.4%
+20.8%
EBITDA
56
47
+18.7%
+19.0%
EBIT
25
18
+36.2%
+36.8%
In Africa, the environment remained positive, despite the
pandemic’s substantial impact, which brought large
government-funded projects to a standstill in Senegal.
- In the Cement business, consolidated sales advanced by +14.8%
at constant scope and exchange rates. This increase reflected a
significant increase in Cement volumes in Senegal thanks to the
improvement in the production performance of the Rufisque plant and
the ramp-up in the new grinder in Mali. Selling prices improved
over the year as a whole despite an unfavourable base of comparison
in the second half following the introduction of a new cement tax
in May. Note that prices were successfully raised slightly once
again very late on in the year. As a result of these factors and
lower energy costs, the EBITDA generated by the business surged
+46.3% over the year as a whole.
- The Aggregates business in Senegal was held back by the
stoppage of numerous government-funded projects given budget
constraints and the pandemic crisis. Its consolidated sales
declined -36.6% over the period as a result of a steep volume
contraction. EBITDA sank -53.4% lower.
The Group’s activity trends in the other West African countries
recorded a strong increase, supported by the rapid ramp-up in its
Ciment et Matériaux du Mali subsidiary’s grinder and strong
momentum in Mauritania. Selling prices edged higher in Mauritania,
but dropped back in Mali. Overall, both Mali and Mauritania
recorded EBITDA increases.
2. Balance sheet and cash flow statement
At 31 December 2020, the Group had a solid financial structure,
with €2,411 million in shareholders’ equity, compared with €2,596
million at 31 December 2019. It is important to note that the
currency devaluation at the balance sheet date had a very major
impact on both assets and equity. Net debt totalled €1,202 million
at 31 December 2020, down €88 million compared with at 31 December
2019. On this basis, gearing stood at 49.9% at 31 December 2020,
compared with 49.7% at 31 December 2019, with the leverage ratio at
2.16x, down from 2.45x at 31 December 2019.
In line with operating profitability, cash flow totalled €461
million during the year, representing an increase of +12.9% at
constant scope and exchange rates. Net capital expenditure during
the year as a whole came to €300 million. Given the strong level of
cash generation in the second half, the Group decided to resume
towards the end of the year the investments it had postponed during
the first half in view of the Covid-19 situation. Close to half
this amount relates to the construction of the new kiln-line at the
Ragland plant in the United States.
Lastly, the Group’s free cash flow came to €228 million in 2020,
compared with €159 million in 2019, as a result of the improvement
in EBITDA and a clear reduction in the working capital
requirement.
3. Outlook for 2021
In 2021, macroeconomic conditions in all of the countries where
the Group operates are still likely to be affected by the Covid-19
pandemic to varying degrees depending on the pandemic situation and
the governmental responses. At present, business is conducted
within the strict framework of the procedures adapted to the public
health conditions in each country where the Group is present.
Within this framework, it is important to note that:
- The twelve countries where the Group operates have been
affected by the Covid-19 epidemic, sometimes with timing
differences in the intensity of its impact;
- The sharing of experience between countries allows good
practice and operating modes to be introduced to help meet the
demands of the situation in each country and ensure business
continuity where this is allowed;
- Given the current environment, business levels are highly
volatile.
In addition, three factors are likely to have an impact on the
Group’s financial performance and its evolution throughout
2021:
- The unfavourable exchange rate trends recorded in 2020 will
have a negative impact on 2021 as a whole. The Group wishes to
reiterate that its currency risk is predominantly a currency
translation risk;
- Energy costs are expected to rise, leading to a more limited
impact on the first half, but a larger one in the second half;
- Lastly, the Group expects to reap the benefit of a favourable
base of comparison in the first six months owing to the pandemic’s
major impact in the same period of 2020, especially in France,
India and Italy. Conversely, given the rebound in activity and
catch-up effect in these countries during the third quarter of
2020, comparisons against the third quarter are likely to be
unfavourable in 2021.
During 2021, the Group will keep up its investment drive
focusing chiefly on:
- The continuing 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 the
market they can serve and lower logistics costs;
- And, lastly, the ramp-up in projects to meet the carbon
footprint reduction targets.
Accordingly, investments industrial capex are expected to be
higher than in 2020 at around €365 million. The Group reserves the
right to adjust its investment plans to the shifting trends in its
markets and its cash generation.
The Group is issuing the following elements to appreciate the
performance expected in the various countries in which it operates.
It wishes to make clear that these trends are highly dependent on
the latest 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. Given the pandemic’s impact on
the first six months of 2020, the base of comparison is set to be
favourable for the first part of the year. Conversely, the Group
anticipates a less dynamic performance in the third quarter as a
result of the very strong rebound in the same period of 2020;
- In Switzerland, business in Cement and in Concrete &
Aggregates should reap the benefit of upbeat conditions in the
construction sector. The Precast business is likely to remain under
pressure, albeit with a gradual upturn in the rail sector;
- In the United States, activity levels are expected to keep
growing in terms of both volumes and selling prices. The roll-out
of the economic stimulus plan presented by the new US
administration is unlikely to have much of an impact until late in
the year and will be more of a factor from 2022 onwards;
- In Brazil, the environment is expected to remain favourable.
That said, given the high base of comparison set in 2020, the Group
expects its performance there to be stable at best in 2021;
- In India, the Group expects to reap the benefit of the market
growth forecast in 2021 and a favourable base of comparison. Prices
are set to remain volatile, however, amid these supportive
conditions;
- In Kazakhstan, 2020 performance levels set a high base of
comparison, although conditions are expected to remain favourable,
albeit potentially with a fiercer competitive environment;
- In Turkey and Egypt, the persistently tough macroeconomic and
competitive conditions will remain a drag on activity levels. Given
the stabilisation in the industry environment and the stirrings of
a recovery in Turkey towards the end of 2020, the situation is
expected to continue improving gradually. As things stand,
visibility in Egypt on the outlook for the construction market is
very limited and the government will need to take action to restore
a viable market environment;
- In West Africa, activity trends are expected to remain strong
in Cement. The base of comparison for prices will remain
unfavourable in the first six months but should be offset by
further improvement in volumes sold and positive pricing trends in
the second half. The Aggregates business in Senegal is likely to
stabilise progressively after the sharp slowdown in public
infrastructure projects since mid-2019.
Given all these factors, the Group expects its EBITDA to rise at
constant scope and exchange rates over the full year. Naturally,
this expectation is subject to change during the year depending on
pandemic-related developments and their impact on the macroeconomic
and industry environment in the countries in which the Group
operates.
Conference call
To accompany the publication of the Group’s full-year 2020
results, Vicat is holding a conference call in English that will
take place on Tuesday, 16 February 2021 at 3pm Paris
time (2pm London time and 9am New York time).
To take part in the conference call live, dial one of the
following numbers:
- USA: +1 212 999 6659
- France: +33 (0) 1 7037 7166
- UK (Standard International Access): +44 (0) 33 0551 0200
You may also access a live audio webcast of the conference,
together with the presentation, on the Vicat website or simply by
clicking here. The replay of the conference call will be
immediately available for streaming via the Vicat website and by
clicking here.
Next report:
First-quarter 2021 sales on 5 May 2021 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):
- Performanceat 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.
Consolidated financial statements at 31
December 2020 approved by the Board of Directors on 12 February
2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS December 31, 2020 December
31,2019 (in thousands of euros) Notes
NON-CURRENT ASSETS
Goodwill
(3)
1,118,874
1,231,538
Other intangible assets
(4)
170,812
187,046
Property, plant and equipment
(5)
1,987,852
2,031,781
Rights of use relating to leases
(6)
186,829
219,066
Investment properties
(7)
14,831
15,125
Investments in associated companies
(8)
77,873
85,212
Deferred tax assets
(24)
71,922
89,938
Receivables and other non-current financial assets
(9)
239,176
236,142
Total non-current assets
2,749,295
4,095,848
CURRENT ASSETS
Inventories and work-in-progress
(10)
354,937
401,551
Trade and other accounts
(11)
440,874
416,568
Current tax assets
3,328
72,811
Other receivables
(11)
152,496
192,776
Cash and cash equivalents
(12)
422,843
398,514
Total current assets
1,374,478
1,482,220
TOTAL ASSETS
4,123,773
5,578,068
LIABILITIES
December 31, 2020 December 31,2019 (in thousands of
euros)
Notes
SHAREHOLDERS' EQUITY
Capital
(13)
179,600
179,600
Additional paid-in capital
11,207
11,207
Treasury shares
(53,587)
(52,416)
Consolidated reserves
2,679,297
2,598,620
Translation reserves
(640,130)
(405,843)
Shareholders' equity, Group share
2,176,387
2,331,168
Minority interests
234,306
264,767
Total shareholders' equity and minority interests
2,410,693
2,595,935
NON-CURRENT LIABILITIES
Provisions for pensions and other post-employment
benefits
(14)
139,022
141,235
Other provisions
(15)
116,764
140,243
Financial debts and put options
(16)
1,270,162
1,109,769
Lease liabilities
(16)
157,563
178,398
Deferred tax liabilities
(24)
213,736
253,194
Other non-current liabilities
37,999
52,072
Total non-current liabilities
1,935,246
1,874,911
CURRENT LIABILITIES
Provisions
(15)
13,522
10,635
Financial debts and put options at less than one year
(16)
165,375
391,594
Lease liabilities at less than one year
(16)
47,382
59,864
Trade and other accounts payable
375,329
354,652
Current taxes payable
24,557
49,162
Other liabilities
(18)
270,543
241,315
Total current liabilities
896,708
1,107,222
Total liabilities
2,831,954
2,982,133
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
5,242,647
5,578,068
CONSOLIDATED INCOME STATEMENT
2020
2019
(in thousands of euros) Notes
Sales revenues
(19)
2,805,162
2,739,993
Goods and services purchased
(1,720,244)
(1,710,592)
Added value
(1.23)
1,084,918
1,029,401
Personnel costs
(20)
(489,921)
(475,396)
Taxes
(62,078)
(64,592)
Gross operating income
(1.23)
532,919
489,413
Other operating income (expense)
(22)
24,396
36,718
EBITDA
(1.23)
557,315
526,131
Net charges to operating depreciation, amortization and provisions
(21)
(259,467)
(259,488)
EBIT
(1.23)
297,848
266,643
Other non-operating income (expense)
(22)
(6,080)
13,622
Net charges to non-operating depreciation, amortization and
provisions
(21)
(14,207)
(19,206)
Operating income (expense)
277,561
261,059
Cost of net financial debt
(23)
(36,870)
(33,367)
Other financial income
(23)
20,671
12,577
Other financial expenses
(23)
(18,630)
(17,266)
Net financial income (expense)
(23)
(34,829)
(38,056)
Earnings from associated companies
(8)
4,021
5,096
Profit (loss) before tax
246,753
228,099
Income tax
(24)
(74,609)
(68,229)
Consolidated net income
172,144
159,870
Portion attributable to minority interests
16,149
11,049
Portion attributable to the Group
155,995
148,821
Earnings per share (in euros)
Basic and diluted Group share of net
earnings per share
(13)
3.47
3.31
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in thousands of euros)
2020
2019
Consolidated net
income
172,144
159,870
Other comprehensive income
Items
not recycled to profit or loss:
Remeasurement of the net defined benefit liability
46
(17,457)
Tax on non-recycled items
307
4,391
Items recycled to profit or
loss: Net income from change in
translation differences
(280,898)
(7,421)
Cash flow hedge instruments
4,878
11,305
Tax on recycled items
(1,157)
(2,919)
Other comprehensive income (after tax)
(276,824)
(12,101)
Total comprehensive
income
(104,680)
147,769
Portion attributable to minority interests
(20,570)
9,554
Portion attributable to the Group
(84,110)
138,215
CONSOLIDATED STATEMENT OF CASH FLOW
(in thousands of euros)
Notes
2020
2019
Cash flows from operating activities
Consolidated net income
172,144
159,870
Earnings from associated companies
(4,021)
(5,096)
Dividends received from associated companies
4,860
1,486
Elimination of non-cash and non-operating items:
- depreciation, amortization and provisions
276,796
284,347
- deferred taxes
5,086
5,852
- net (gain) loss from disposal of assets
(5,114)
(4,639)
- unrealized fair value gains and losses
128
(22)
- others
10,693
(16,702)
Cash flows from operating activities
1.23
460,572
425,096
Change in working capital requirement
67,647
(42,789)
Net cash flows from operating activities(1)
26
528,219
382,307
Cash flows from investing
activities
Outflows linked to acquisitions of non-current assets:
- tangible and intangible assets
(319,370)
(237,484)
- financial investments
(23,613)
(48,621)
Inflows linked to disposals of non-current assets:
- tangible and intangible assets
18,946
14,671
- financial investments
4,912
17,361
Impact of changes in consolidation scope
(2,992)
(322,994)
Net cash flows from investing activities
27
(322,117)
(577,067)
Cash flows from financing
activities
Dividends paid
(74,282)
(73,458)
Increases/decreases in capital
250
500
Proceeds from borrowings
16
210,729
428,933
Repayments of borrowings
16
(209,432)
(43,902)
Repayment of lease liabilities
16
(62,198)
(52,519)
Acquisitions of treasury shares
(7,555)
(7,502)
Disposals or allocations of treasury shares
4,423
8,927
Net cash flows from financing activities
(138,065)
260,979
Impact of changes in foreign exchange rates
(37,552)
486
Change in cash position
30,485
66,705
Net cash and cash equivalents - opening balance
28
328,674
261,969
Net cash and cash equivalents - closing balance
28
359,159
328,674
(1) - Including cash flows from income taxes: € (34.5)
million in 2020 and € (73.7) million in
2019. - Including cash flows from
interest paid and received: € (36) million in 2020 including€ (9.7)
million for financial expenses on IFRS 16 leases and € (22.3)
million in 2019 including€ (3.3) million for financial expenses on
IFRS 16 leases.
STATEMENT OF CHANGES IN CONSOLIDATED
SHAREHOLDER'S EQUITY
(in thousands of euros) Capital
Additionalpaid-incapital Treasuryshares Consolidatedreserves
Translation reserves
Shareholders'equity
Minorityinterests
Totalshareholders'equity
andminorityinterests At January 1, 2019
179,600
11,207
(56,144)
2,524,952
(400,348)
2,259,267
221,474
2,480,741
Net income
148,821
148,821
11,049
159,870
Other comprehensive income(1)
(5,111)
(5,495)
(10,606)
(1,495)
(12,101)
Total comprehensive income
143,710
(5,495)
138,215
9,554
147,769
Dividends paid
(66,434)
(66,434)
(7,030)
(73,464)
Net change in treasury shares
3,728
(1,707)
2,021
2,021
Changes in scope of consolidationand additional acquisitions(2)
(1,713)
(1,713)
40,635
38,922
Other changes
(188)
(188)
134
(54)
At December 31, 2019
179,600
11,207
(52,416)
2,598,620
(405,843)
2,331,168
264,767
2,595,935
At January 1, 2020
179,600
11,207
(52,416)
2,598,620
(405,843)
2,331,168
264,767
2,595,935
Net income
155,995
155,995
16,149
172,144
Other comprehensive income(1)
(5,818)
(234,287)
(240,105)
(36,719)
(276,824)
Total comprehensive income
150,177
(234,287)
(84,110)
(20,570)
(104,680)
Dividends paid
(66,369)
(66,369)
(8,232)
(74,601)
Net change in treasury shares
(1,171)
(1,455)
(2,626)
(2,626)
Changes in consolidation scope andadditional acquisitions
Other changes
(1,676)
(1,676)
(1,659)
(3,335)
At December 31, 2020
179,600
11,207
(53,587)
2,679,297
(640,130)
2,176,387
234,306
2,410,693
(1) Breakdown by nature of other
comprehensive income:
Other comprehensive income includes mainly
cumulative conversion differences from end 2003. To recap, applying
the option offered by IFRS 1, the conversion differences
accumulated before the transition date to IFRS were reclassified by
allocating them to retained earnings as at that date.
(2) : mainly including the minority interests
connected to the acquisition of Ciplan in Brazil (see note 2)
Group translation reserves are broken down by
currency as follows at December 31, 2020 and
2019:
(in thousands of euros)
December 31,2020 December 31,
2019 US Dollar
6,356
42,965
Swiss franc
206,123
202,323
Turkish lira
(299,777)
(267,777)
Egyptian pound
(126,196)
(124,787)
Kazakh tenge
(99,069)
(89,672)
Mauritanian ouguiya
(10,556)
(8,676)
Brazilian real
(100,930)
(15,348)
Indian rupee
(216,081)
(144,871)
(640,130)
(405,843)
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Investor relations contact: Stéphane Bisseuil: Tel.: +33
1 58 86 86 05 stephane.bisseuil@vicat.fr
Press contacts: Marie-Raphaelle Robinne Tel.: +33 (0) 4
74 27 58 04 marie-raphaelle.robinne@vicat.fr
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