Regulatory News:
Vicat (Paris:VCT):
- Strong growth in results over the first half
- Dynamic markets and selling prices well oriented
- New low-carbon product line “DECA”
- Strong cash flow generation over the period
(€ million)
30 June 2021
30 June 2020
Change
(reported)
Change (at constant
scope and
exchange rates)
Consolidated sales
1,560
1,304
+19.6%
+26.2%
EBITDA
300
213
+41.0%
+48.3%
EBITDA margin (%)
19.2%
16.3%
EBIT
171
76
+126.3%
+137.4%
EBIT margin (%)
11.0%
5.8%
Consolidated net income
102
29
+247.0%
+260.9%
Net margin (%)
6.5%
2.3%
Net income, Group share
94
27
+246.3%
+256.1%
Cash flow
240
175
+36.8%
+43.9%
Commenting on these figures, Guy Sidos, the Group’s
Chairman and CEO, said:
“Leveraging the dynamism of its markets, Vicat’s financial
results continue their progression. The Group once again
demonstrates its responsiveness and ability to adapt and confirms
the relevance of its industrial and commercial strategy. Focused on
its carbon footprint reduction targets, the Group has accelerated
the commercialisation of its low-carbon product lines, adapted to
the global climate challenge.”
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).
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The Group enjoyed strong sales growth in the first
half of 2021 as buoyant markets combined with a favourable
basis of comparison. The Group’s business was hit particularly hard
in the second quarter of 2020, particularly in India and France, by
the spread of Covid 19 and the governmental measures introduced to
tackle it. Although the pandemic has continued into the early part
of this year, and whilst certain markets remain disrupted, the
measures introduced have allowed activity to continue in the
construction sector.
As a result, the Group’s consolidated sales were €1,560
million, from €1,304 million in the first half of 2020, an increase
of 19.6% on a reported basis and of 26.2% at constant scope and
exchange rates.
Movements in consolidated sales on a reported basis resulted
from:
- organic sales growth of +26.2%, driven by strong markets in all
of the Group’s regions and a favourable basis of comparison;
- a negative currency effect of -6.8%, corresponding to a loss of
reported sales of €89 million over the first half, due to the
appreciation of the euro;
- and lastly, a positive scope effect of +0.3%, adding €3 million
to sales, resulting primarily from small acquisitions in Concrete
and Aggregates in France.
The Group’s operational sales amounted to €1,771 million,
up +19.8% on a reported basis and +26.4% at constant scope and
exchange rates. Each of the Group’s business areas contributed to
this positive trend. The Cement business (€938 million) posted
growth of +20.7% on a reported basis and +29.1% at constant scope
and exchange rates. Operational sales in Concrete & Aggregates
(€585 million) were up by +16.5% on a reported basis and +22.1% at
constant scope and exchange rates. Finally, the Other Products
& Services business area (€249 million) saw growth of +24.7% on
a reported basis and +26.6% at constant scope and exchange
rates.
Consolidated EBITDA was €300 million for the first half
of 2021, up +41.0% on a reported basis and +48.3% at constant scope
and exchange rates. As a result, the EBITDA margin was 290 basis
points higher at 19.2%. The reported change in EBITDA reflects a
negative currency effect of €16 million together with organic
growth of €103 million.
At constant scope and exchange rates, EBITDA growth came
from:
- strong business levels across all markets;
- a widespread upward movement in selling prices, which offset
cost inflation;
- a favourable basis of comparison, given the health situation in
the first half of 2020.
EBIT came to €171 million, from €76 million in the first
half of 2020, an increase of +126.3% on a reported basis and of
+137.4% at constant scope and exchange rates, after inclusion of a
€6.8 million net reversal of provisions relating to the end of the
Article 39 pension scheme. As a result, the EBIT margin on
consolidated sales rose 520 basis points to 11.0%. This performance
reflected a very strong improvement in operating profitability in
France, and the Americas, Asia and Africa zones. The Europe
(excluding France) and Mediterranean zones were more or less stable
over the period at constant scope and exchange rates.
Operating income reaches €161 million, up +161.4% on a
reported basis and +174.3% at constant scope and exchange rates.
This performance was primarily the result of improvements in
operating margins at both the EBITDA and EBIT levels, together with
additional impairment of €11 million on receivables relating to
investment in Egypt.
The €2 million increase in net financial expense (which
rose from €16 million in the first half of 2020 to €18 million) was
the net result of a reduction of nearly €2 million in the cost of
net financial debt, following the refinancing of part of the debt
in 2020 and, on the other hand, a fall in other financial income
and expense caused by the recognition of a non-recurring income
item in Brazil in 2020.
Tax expense increased by €25 million, the result of
growth in pre-tax income. The apparent tax rate fell from 42.8% at
30 June 2020 to 30.7% in 2021. This reduction in the tax rate came
mainly from reductions in the tax rates in France and Switzerland,
a favourable country mix and the reversal of deferred taxation
relating to the final signature of the amendment to the mining
agreement in Senegal.
Consolidated net income was €102 million in the first
half of 2021, an increase of €73 million on the €29 million
reported for the same period of 2020, giving growth of +260.9% at
constant scope and exchange rates and +247.0% on a reported
basis.
Net income, Group share was €94 million, an increase of
+256.1% at constant scope and exchange rates and +246.3% on a
reported basis.
Cash flow came to €240 million, up +36.8% on a reported
basis and +43.9% at constant scope and exchange rates, as a result
of the strong growth in EBITDA over the semester.
1. Income statement broken down by geographical
region
1.1. Income statement, France
(€ million)
30 June 2021
30 June 2020
Change
(reported)
Change (at
constant
scope and
exchange rates)
Consolidated sales
562
444
+26.5%
+25.7%
EBITDA
104
56
+83.9%
+83.7%
EBIT
66
14
+379.8%
+380.5%
Over the first six months of the year, in line with the trend
seen in the second half of 2020, and given a highly favourable
basis of comparison, the Group’s performance in France improved
strongly. Although the effects of the health crisis weighed over
this first part of the year, government measures, along with steps
taken by the Group, allowed it to seize growth opportunities and
report a strong performance across all business areas.
Under these circumstances, EBITDA grew strongly throughout the
period, despite a slight increase in energy costs and an
unfavourable basis of comparison relating to the non-recurrent
effects of the cost-cutting plan introduced at the end of the first
quarter of 2020 to address the impact of lockdown measures.
- In the Cement business, operational sales rose +23.0% at
constant scope over the period as a whole as a result of the
favourable base of comparison of the first half of 2020 and a
supportive industry environment in the Group’s markets. These
factors helped to more than offset the impact of the less
favourable weather conditions, with the sector seeing significant
growth throughout the period. Against this positive background,
selling prices increased. EBITDA rose by +63.8%, and the EBITDA
margin on operational sales in this business area rose by 600 basis
points.
- The Concrete & Aggregates business increased its
operational sales by +29.6% at constant scope. This growth was the
result of increased business levels in both concrete and
aggregates. Selling prices moved higher in aggregates and were
stable in concrete. As a result, EBITDA in this business area grew
by +106.1% at constant scope over the period, producing a 450
basis-point increase in EBITDA margin on operational sales.
In the Other Products & Services business, operational sales
rose +30.9% at constant scope over the period. EBITDA in this
business grew by +154.5% over the period, with the EBITDA margin on
operational sales gaining 320 basis points.
1.2 Income statement for Europe excluding France
(€ million)
30 June 2021
30 June 2020
Change
(reported)
Change (at
constant
scope and
exchange rates)
Consolidated sales
203
198
+2.5%
+5.3%
EBITDA
39
40
-1.9%
+0.8%
EBIT
19
20
-0.9%
+1.8%
Activity in Europe (excluding France) covers Switzerland and
Italy. The Swiss market, which was only slightly affected by the
pandemic during the first half of 2020, saw modest growth in the
first half of the current year. Meanwhile, Italy benefited from a
very favourable basis of comparison given the particularly
difficult health and macroeconomic situations in the first half of
2020. EBITDA, for the region as a whole, was stable (+0.8%) at
constant scope and exchange rates and -1.9% lower on a reported
basis.
In Switzerland, the Group’s consolidated sales rose by
+3.9% at constant scope and exchange rates (+1.0% on a reported
basis). Business in this country continued as normal with no
significant impact on sector conditions from the epidemic. The
EBITDA margin on consolidated sales was down -80 basis points at
19.5%.
- In the Cement business, operational sales grew by +6.3% at
constant scope and exchange rates, bolstered by strong markets and
waste processing activities. Selling prices were down over the
first half, due to an unfavourable client mix. As a result of these
factors and given a non-recurring element in the first half, EBITDA
in this business fell -19.9% at constant scope and exchange rates,
with the EBITDA margin on operational sales coming in at 25.3%
versus 33.6% in the first half of 2020.
- In the Concrete & Aggregates business, operational sales
were down -6.7% at constant scope and exchange rates due to less
favourable weather conditions, particularly in the first quarter,
and a slight decline in selling prices. In contrast, the recycling
business saw a solid increase in prices. As a result of these
factors, EBITDA generated by this business rose +3.5% at constant
scope and exchange rates, with EBITDA margin on operational sales
gaining 180 basis points over the first half.
- In Other Products & Services, operational sales were up
+11.9% at constant scope and exchange rates. EBITDA from this
business was once again significantly positive over the first half,
at nearly €4 million, whereas it was around break-even in the same
period of 2020. The EBITDA margin on operational sales was 5.7%.
Meanwhile, the Group completed the disposal of Creabeton Matériaux
(lightweight precast products) on 30 June 2021.
In Italy, given the shutdown of the business for 30 days
in the first half of 2020, consolidated sales rose +36.7% over the
period. Business levels and selling prices were both significantly
higher over the first half. As a result, EBITDA grew by +44.5% over
the period. EBITDA margin on consolidated sales thus improved by 60
basis points compared to the first half of 2020.
1.3 Income statement for the Americas
(€ million)
30 June 2021
30 June 2020
Change
(reported)
Change (at
constant
scope and
exchange rates)
Consolidated sales
319
298
+7.1%
+20.1%
EBITDA
70
56
+24.9%
+41.2%
EBIT
43
26
+63.3%
+86.0%
Despite a concerning pandemic situation, especially in Brazil,
activity levels remained strong in both the United States and
Brazil. The acceleration in the pace of growth seen in Brazil since
the third quarter of 2020 continued strongly through the first half
of this year. As a result, there was strong growth in both sales
and EBITDA in the Americas region.
In the United States, the macroeconomic and sector
environment remained favourable in the first half. It should be
noted that in California the second quarter was affected by an
unfavourable basis of comparison, given the record level of
delivery volumes in this period in 2020, particularly in May and
June. Even so, consolidated sales in the United-States grew by
+11.1% at constant scope and exchange rates, taking them to €238
million. EBITDA was €46 million, an increase of +21.5% at constant
scope and exchange rates.
The construction of a 5,000 tonnes per day kiln line at Ragland,
Alabama, begun in 2019, continued. This new facility will come into
service in the first quarter of 2022. It will increase the plant’s
capacity, thus helping to meet strong market demand, significantly
reduce production costs and make an active contribution to the
Group’s targets in terms of reducing CO2 emissions.
- In the Cement business, operational sales rose +4.9% at
constant scope and exchange rates in the first half of 2021, on the
back of solid trends in the Group’s markets and increases in
selling prices over the period. EBITDA generated in this business
rose by +16.7% at constant scope and exchange rates. As a result,
the EBITDA margin on consolidated sales improved by 290 basis
points.
- In the Concrete business, operational sales rose +14.9% at
constant scope and exchange rates again thanks to solid market
trends, especially in the South-East region, and increases in
average selling prices. EBITDA saw strong growth over the period,
with an increase of +37.9% at constant scope and exchange rates. As
a result, the EBITDA margin on operational sales rose by 130 basis
points.
In Brazil, consolidated sales were €81 million, an
increase of +53.1% at constant scope and exchange rates. Growth in
this area was strong, despite continued concerns over the health
situation. EBITDA grew solidly over the first half, reaching €24
million, from €15 million in the same period in 2020. The EBITDA
margin improved by 660 basis points.
- In the Cement business, operational sales were €67 million,
from €52 million in the first half of 2020, an increase of +55.1%
at constant scope and exchange rates. This performance was driven
by the strength of the markets in which the Group is active and
positive price trends that allowed higher costs, particularly for
energy, to be passed on in full. EBITDA amounted to €22 million in
the first half of 2021, from €13 million in the same period in
2020; EBITDA margin on operational sales was 32.6%.
- In the Concrete & Aggregates business, operational sales
were €23 million, an increase of +80.9% at constant scope and
exchange rates, in line with the growth recorded in the Cement
business. The improvement in market conditions was accompanied by a
rise in prices, both in concrete and in aggregates. EBITDA was
+54.6% higher at constant scope and exchange rates.
1.4 Asia (India and Kazakhstan)
(€ million)
30 June 2021
30 June 2020
Change
(reported)
Change (at
constant
scope and
exchange rates)
Consolidated sales
206
149
+38.5%
+51.2%
EBITDA
58
38
+51.3%
+65.4%
EBIT
40
19
+114.4%
+134.5%
The Asia region, particularly India, continues to be severely
affected by the pandemic crisis, which is affecting the
macroeconomic and sector environment to a lesser extent than in the
first half of 2020. The measures taken by the Indian government to
counter the situation have enabled the Group to continue operating,
unlike in the first half of 2020, when both the Group’s plants had
to shut down completely for a month.
In the light of these factors, and given the favourable basis of
comparison from the first half of 2020, activity in India
saw strong growth in the first half, on the back of strong demand
and the effects of the government’s recovery programmes. The
shortage of labour in major urban areas, triggered by the latest
restrictions introduced by some states in response to the pandemic,
have had an impact particularly for major infrastructure works over
this period, but now seem to be easing gradually. Under these
conditions, prices have remained strong over the period. Thus, the
Group posted consolidated sales of €177 million in the first half
of 2021, an increase of +60.5% at constant scope and exchange
rates.
Given these trends, EBITDA was €49 million, an increase of
+87.6% at constant scope and exchange rates. EBITDA margin on
consolidated sales rose 400 basis points to 27.6%.
In Kazakhstan the Group posted consolidated sales of €30
million in the first half of 2021, an increase of +13.9% at
constant scope and exchange rates. This reflected further growth
for the Group in the Kazakh domestic market, which offset the fall
in exports. Given this favourable geographical mix and the dynamic
trends in the domestic market, prices recorded a significant
increase.
EBITDA was +2.7% higher at constant scope and exchange rates, at
€9 million.
1.5 Income statement for the Mediterranean region (Egypt and
Turkey)
(€ million)
30 June 2021
30 June 2020
Change
(reported)
Change (at
constant
scope and
exchange rates)
Consolidated sales
103
75
+37.4%
+71.5%
EBITDA
-6
-9
+35.5%
+35.4%
EBIT
-16
-18
+11.3%
-0.5%
The Mediterranean region remains affected by the deterioration
in the macroeconomic and sector situation, although this is
gradually improving, most notably in Turkey. In Egypt, the security
situation and the competitive environment remained a challenge in
the first half. This being the case, the Group once again reported
negative EBITDA in this region in the six months to 30 June
2021.
In Turkey, while the ongoing depreciation of the Turkish
lira since August 2018 and the pandemic crisis continued to affect
the macroeconomic and sector environment, the recovery in the
construction market remains on track. Consolidated sales were €69
million, an increase of +71.0% at constant scope and exchange
rates. EBITDA improved significantly over the first half, reaching
€2 million, having posted a very small loss in the first half of
2020.
- In the Cement business, the firmer trends observed since the
end of 2020 carried through into the first half of 2021, with
favourable weather conditions at the beginning of the year
providing a boost. Business levels and selling prices were both
significantly higher than in the first half of 2020. Operational
sales were €50 million, an increase of +72.6% at constant scope and
exchange rates. Given these factors, EBITDA at constant scope and
exchange rates increased by a factor of seven over the period.
However, price increases only partially offset the sharp inflation
in costs resulting from the depreciation of the currency.
- In the Concrete & Aggregates business, operational sales
rose +64.5% at constant scope and exchange rates to €31 million.
This business benefited over the first half from continued
improvements in market conditions and favourable weather conditions
which resulted in price rises. EBITDA from this business was
slightly positive in the first half, compared to a small loss in
the same period of 2020.
In Egypt, consolidated sales came to €34 million, up
+72.7% at constant scope and exchange rates. Given the difficult
conditions that have existed for a number of years, which have
affected the whole sector, it should be noted that the first half
of 2021 brought the conclusion of a market regulation agreement
between the Egyptian government and all producers. This agreement,
which came into force in July 2021, was approved by the Competition
Authority and aims to create a more rational framework for the
various market participants by limiting (to around 65% of their
capacity) sales from all factories into the domestic market for a
period of one year. As a result, market prices for cement saw, in
the first half of 2021, their first increase since the third
quarter of 2018, even though their average over the first half of
this year was still slightly lower than for the first half of
2020.
Although this marks the first signs of a long-awaited change,
EBITDA in Egypt remained negative, at €-8 million over the first
half of 2021 (from €-9 million in the first half of 2020).
1.6 Income statement for Africa (Senegal, Mali,
Mauritania)
(€ million)
30 June 2021
30 June 2020
Change
(reported)
Change (at
constant
scope and
exchange rates)
Consolidated sales
167
140
+19.4%
+19.7%
EBITDA
35
32
+11.4%
+11.8%
EBIT
18
15
+20.8%
+21.5%
In Africa, the Group continues to benefit from a favourable
sector environment despite the pandemic crisis, helped by
improvements in performance at the Rufisque plant and by the
ramp-up of the new mill in Mali.
- In the Cement business, operational sales in the Africa region
grew +20.1% 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 of the new mill in Mali.
Selling prices in Senegal were lower than in the first half of 2020
given the introduction of the new tax on cement in May 2020. It
should be noted that this unfavourable comparison effect has now
come to an end and that prices in May and June were slightly higher
than in the same period of 2020. Pricing conditions in Mali and
Mauritania are positive. As a result of these factors, EBITDA
generated by this business rose +10.4% at constant scope and
exchange rates, with EBITDA margin on operational sales 170 basis
points lower over the first half, at 19.0%.
- In Senegal, the Aggregates business posted consolidated sales
of €15 million in the first half of 2021, an increase of +16.8% at
constant scope and exchange rates, driven by the gradual resumption
of major government projects against the background of favourable
pricing trends. As a result of these factors, EBITDA generated by
this business rose +21.0%, and EBITDA margin on operational sales
was up 110 basis points.
2. Financial position at 30 June 2021
At 30 June 2021, the Group had a solid financial structure, with
substantial equity and well-controlled borrowing. At this date,
shareholders’ equity was €2,459 million, from €2,411 million at 31
December 2020.
Meanwhile, debt was €1,320 million at 30 June 2021, from €1,202
million at 31 December 2020.
On this basis the Group’s leverage ratio was 2.05x (from 2.16x
at 31 December 2020 and 2.49x on 30 June 2020) and its gearing was
53.7% (from 49.9% at 31 December 2020 and 52.9% at 30 June
2020).
Given the levels of the Group’s net debt and liquidity, the
covenants included in medium- or long-term financing contracts do
not pose a threat to the Group’s financial position. At 30 June
2021, the Group complied with all financial ratios required by
covenants in its borrowing agreements.
In the first-half of 2021, net capital expenditure stood at 170
million euros and was for a large part related to the continued
construction of the new kiln in Ragland in the United-States.
Finally, free-cash flow this first-half stood at -52 million
euros.
3. Recent events
Completion of disposal of Creabeton
Matériaux in Switzerland:
On 30 June 2021, the Vicat Group’s Swiss subsidiary, Vigier
Holding SA, finalised the disposal of Creabeton Matériaux SA to
Müller Steinag Holding, based in Switzerland.
Creabeton Matériaux SA, specialises in precast concrete
products; it has 380 employees and had sales of SFR91 million in
2020. Vigier Holding SA has retained the Rail business, which has
critical mass in its specific sector.
With this acquisition, the Müller Steinag Holding Group, which
has been the joint owner of the Creabeton brand since 2002, will be
able to strengthen its positions in precast products, its core
business, and gain access to new markets. Creabeton Matériaux SA
meanwhile will receive the backing of a leading company with
critical mass in a highly competitive sector and have access to the
resources necessary to continuing its successful development.
Organisation of a Capital Markets
Day:
The Group will organise a Capital Markets Day on 16 November
2021 to present its strategy, roadmap and ambitions for reducing
CO2 emissions.
Further details regarding the organisation of this event will be
provided in the near future and will take into account evolutions
in the public health situation.
4. 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 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 on the best possible terms;
- 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, which will have a
significant impact in the second half. Over the year as a whole,
energy costs are expected to increase by around +9%;
- Lastly, given the recovery in activity seen in France, India
and Italy in the third quarter of 2020, the basis of comparison
will be unfavourable in the third quarter and, to a lesser extent,
the fourth quarter of 2021.
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.
Accordingly, industrial capital expenditure is expected to be
higher than in 2020 at around €385 million. The Group maintains the
possibility to adjust its investment plans in line with evolutions
in its markets and in 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. 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, business in Cement and in Concrete &
Aggregates should reap the benefit of upbeat conditions in the
construction sector. The Other Products & Services business
will clearly be affected by the removal of the Precasting business
from its scope, following completion of its disposal on 30 June
2021. It should be noted that the disposal of this business will
enhance the profitability of this business area as well as the
Group’s overall results in Switzerland. In the retained Rail
business, the gradual recovery seen in the first half is likely to
continue;
- 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 a gradual stabilisation of growth 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, selling prices, though
well-oriented in the first half, may however remain volatile;
- In Kazakhstan, the 2020 performance constitutes a high basis of
comparison in a context that should nevertheless remain favourable,
but with a competitive environment which could see greater pressure
in the second half;
- In Turkey, Given the stabilisation in the industry environment
and the stirrings of a recovery in 2020, the situation is expected
to continue improving gradually over the second half despite the
persistent weakness of the currency;
- In Egypt, visibility is still limited on the outlook for the
construction market, which remains subject to the effective
implementation of government decisions aimed at restoring a viable
market environment;
- In West Africa, activity trends are expected to remain strong
in Cement. The comparison base for prices will be more favourable
in the second half and this is likely to come alongside continued
growth in sales volumes. The Aggregates business in Senegal is
likely to continue its gradual recovery.
Given all of these factors, the Group expects an increase in
EBITDA 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
As part of this publication, Vicat will be holding a conference
call in English that will take place on Wednesday 28 July at
4:30pm CET (3:30pm London time and 10:30am New York time).
To take part in the conference call live, dial one of the
following numbers:
- USA: +1 212 999 6659
- UK (Standard International Access): +44 (0) 33 0551 0200
- France: +33 (0) 1 7037 7166
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:
Third quarter 2021 sales on Wednesday 3 November 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.
Main financial statements for the first-half of 2021.
The full financial statements for the first-half of 2021 are
available for download, together with the annex, at
www.vicat.fr
CONSOLIDATED INCOME STATEMENT
June 30, 2021 June 30, 2020 (in thousands of euros)
Notes
Sales revenues
13
1,559,667
1,303,695
Goods and services purchased
(992,025)
(820,485)
Added value
1.23
567,642
483,210
Personnel costs
(250,214)
(245,721)
Taxes
(34,644)
(38,552)
Gross Operating Income
1.23
282,784
198,937
Other operating income (expense)
15
17,248
13,916
EBITDA
1.23
300,032
212,853
Net charges to operating depreciation, amortization and provisions
14
(128,844)
(137,206)
EBIT
1.23
171,188
75,647
Other non-operating income (expense)
15
(17,592)
132
Net charges to non-operating depreciation, amortization and
provisions
14
7,483
(14,161)
Operating income (expense)
161,079
61,618
Cost of net financial debt
17
(16,647)
(18,141)
Other financial income
17
7,403
9,129
Other financial expenses
17
(8,519)
(6,635)
Net financial income (expense)
17
(17,763)
(15,647)
Earnings from associated companies
3,154
3,066
Profit (loss) before tax
146,470
49,037
Income tax
18
(44,589)
(19,676)
Consolidated net income
101,881
29,361
Portion attributable to minority interests
8,339
2,351
Portion attributable to the Group
93,542
27,010
Earnings per share (in euros)
Basic and diluted Group share of net
earnings per share
9
2.08
0.60
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in thousands of euros)
June 30, 2021 June 30,
2020 Consolidated
net income
101,881
29,361
Other comprehensive income
Items
not recycled to profit or loss :
Remeasurement of the net defined benefit liability
8,656
(6,606)
Tax on non-recycled items
(2,336)
1,900
Items recycled to profit or
loss : Net income from change in
translation differences
29,862
(149,563)
Cash flow hedge instruments
1,075
6,592
Tax on recycled items
(278)
(1,703)
Other comprehensive income (after tax)
36,979
(149,380)
Total comprehensive
income
138,860
(120,019)
Portion attributable to minority interests
12,826
(19,944)
Portion attributable to the Group
126,034
(100,075)
CONSOLIDATED STATEMENT OF CASH FLOW
(in thousands of euros)
Notes June 30, 2021
June 30, 2020
Cash flows from operating
activities
Consolidated net income
101,881
29,361
Earnings from associated companies
(3,154)
(3,066)
Dividends received from associated companies
1,073
1,296
Elimination of non cash and non-operating items:
- depreciation, amortization and provisions
121,010
148,490
- deferred tax
5,261
2,518
- net (gain) loss from disposal of assets
(3,437)
(997)
- unrealized fair value gains and losses
62
108
- other (1)
17,128
(2,598)
Cash flows from operating activities
1.23
239,824
175,112
Change in working capital requirement
(122,035)
44,980
Net cash flows from operating activities (2)
19
117,789
220,092
Cash flows from investing
activities
Outflows linked to acquisitions of non-current assets:
- Tangible and intangible assets
(177,339)
(122,497)
- Financial investments
(8,839)
(12,848)
Inflows linked to disposals of non-current assets:
- Tangible and intangible assets
7,033
2,239
- Financial investments
657
1,576
Impact of changes in consolidation scope
9,915
0
Net cash flows from investing activities
20
(168,573)
(131,530)
Cash flows from financing
activities
Dividends paids
(73,974)
(70,866)
Increases/decreases in capital
Proceeds from borrowings
11
151,673
48,117
Repayments of borrowings
11
(29,315)
(33,461)
Repayement of lease liabilities
11
(25,865)
(24,548)
Acquisitions of treasury shares
(11,543)
(4,931)
Disposals or allocations of treasury shares
14,073
4,303
Net cash flows from financing activities
25,049
(81,386)
Impact of changes in foreign exchange rates
3,848
(16,547)
Change in cash position
(21,887)
(9,371)
Net cash and cash equivalents - opening balance
21
359,159
328,674
Net cash and cash equivalents - closing balance
21
337,271
319,303
(1)- Including non operating net charges as of June 30, 2021 (2) :-
Including cash flows from income taxes: €(45.5) million in 2021 and
€(9.0) million in 2020. - Cash flows from interest paid and
received: € (14.9) million in 2021 including € (5.6) million for
financial expenses on IFRS 16 leases and € (19.3) million in 2019
including € (5.2) million for interest expense on IFRS 16 leases.
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDER'S EQUITY
(in thousands of
euros)
Capital
Additional
paid in
capital
Treasury shares
Consolidated reserves
Translation reserves
Shareholders'
equity
Minority interests
Total shareholders'
equity and minority
interests
At January 1, 2020
179,600
11,207
(52,416)
2,598,620
(405,843)
2,331,168
264,767
2,595,935
Half year net income
27,010
27,010
2,351
29,361
Other comprehensive income (1)
(3,513)
(123,572)
(127,085)
(22,295)
(149,380)
Total comprehensive income
23,497
(123,572)
(100,075)
(19,944)
(120,019)
Dividends paids
(66,373)
(66,373)
(5,042)
(71,415)
Net change in treasury shares
1,733
(1,751)
(18)
(18)
Changes in consolidation scope and additional acquisitions
Other changes
764
764
(1,678)
(914)
At June 30, 2020
179,600
11,207
(50,683)
2,554,757
(529,415)
2,165,466
238,103
2,403,569
At January 1, 2021
179,600
11,207
(53,587)
2,679,297
(640,130)
2,176,387
234,306
2,410,693
Net income
93,542
93,542
8,339
101,881
Other comprehensive income (1)
9,066
23,426
32,492
4,487
36,979
Total comprehensive income
102,608
23,426
126,034
12,826
138,860
Dividends paids
(66,187)
(66,187)
(7,876)
(74,063)
Net change in treasury shares
1,808
507
2,315
2,315
Changes in consolidation scope and additional acquisitions
(13,327)
(13,327)
(3,057)
(16,384)
Other changes
(2,701)
(2,701)
(90)
(2,791)
At June 30, 2021
179,600
11,207
(51,779)
2,700,197
(616,704)
2,222,521
236,109
2,458,630
1) Breakdown by nature of other comprehensive
income: Other comprehensive income includes mainly
cumulative conversion differences from year 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.
Group translation reserves are broken down by currency as follows
at June 30, 2021 and 2020: (in thousands of euros)
June 30 ,
2021 June 30, 2020 US Dollar
19,754
44,208
Swiss franc
186,194
215,065
Turkish new lira
(304,901)
(283,139)
Egyptian pound
(124,233)
(126,675)
Kazakh tengue
(95,164)
(95,957)
Mauritanian ouguiya
(8,837)
(11,789)
Brazilian real
(82,556)
(91,337)
Indian rupee
(206,961)
(179,791)
(616,704)
(529,415)
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version on businesswire.com: https://www.businesswire.com/news/home/20210727006103/en/
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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