Vicat report Q2 financial results

Activity: resilient first-half performance characterised by major negative currency effects and a slowdown in activity in the US

Vicat’s consolidated sales totalled €1,885 million in the first half of 2025, edging up +0.2% at constant scope and exchange rates and declining -2.7% on a reported basis, impacted by negative exchange rate trends:

The currency effects over the period amounted to €-93 million (or -4.8%), chiefly owing to depreciation in the Turkish lira, Egyptian pound, and Brazilian real against the euro;

The scope effect totalled €+37 million (or +1.9%), mainly reflecting the integration of Cermix with Vicat’s construction chemicals business (VPI);

Vicat’s businesses reported a slowdown in the pace of the downturn in cement activity in France, a recovery in activity levels in Switzerland, and a business slowdown in the US. Overall, emerging markets recorded a stronger performance, especially Brazil and the Mediterranean region, with further encouraging momentum in Egypt. Trends in Asia and Africa remained mixed.

The Cement business displayed resilience during the first half, with consolidated sales rising by +1.7% at constant scope and exchange rates, even though volumes fell -2.5% in the first half of the year, chiefly in developed countries (except for Switzerland) and in Asia. Cement prices remained resilient across most of Vicat’s geographies, except for India in the first quarter and Senegal;

The Concrete & Aggregates business recorded a -3.9% decline in concrete volumes and a +5.8% increase in aggregates volumes in the first half, particularly due to the rise in Senegal and Turkey. Pricing trends varied considerably from one region to another, with significant pricing increases in concrete and aggregates in Brazil. Consolidated sales in this business fell by -1.4% at constant scope and exchange rates;

Other Products & Services posted an increase of +17.5% in consolidated sales in the first six months of 2025 on a reported basis owing to the integration of Cermix’s construction chemicals activities. Excluding scope effects, the business contracted by -2.4%, due to an unfavourable base of comparison in Switzerland (Vigier Rail).

Results: EBITDA inflection but higher consolidated net income

EBITDA totalled €331 million in the first six months of 2025, compared to €353 million in 2024, an all-time record for Vicat. This -6.3% decline (down -2.0% at constant scope and exchange rates) chiefly reflects the slight downturn in results in the United States and in France, and a more unfavourable base of comparison during the first six months in India. The trend in reported EBITDA also reflects an unfavourable currency effect of €-17 million and a scope effect of €+2 million. The EBITDA margin was 17.5%, down just -70 basis points over the period.

The EBITDA reduction at constant scope and exchange rates was chiefly attributable to a negative volume effect (€-19 million) in the first six months and a price/cost differential that remained favourable at Group level (€+11 million).

Energy costs amounted to €208 million in the first six months of 2025. At constant exchange rates and volumes, energy costs were -1.0% lower. However, they remained above the 2021 level (€177 million).

Industrial performance improved in the Cement business over the period, notably with an increase in the use of alternative fuels to replace fossil fuels, which rose by +2.4 points compared to H1 2024 to reach 38.9% at Vicat level.

Recurring EBIT declined -4.4% at constant scope and exchange rates, resulting in an EBIT margin of 9.0%, down -70 basis points in line with the trend in EBITDA.

Net financial expense totalled €-28 million in the first half of 2025, an improvement compared to 2024 as a result of an €-11 million reduction in the net cost of debt owing to the decline in the average total volume of debt and the lower net interest rates after hedging.

Tax expense rose €9 million compared to the first six months of 2024. The effective tax rate was 26.4%, above the first-half 2024 level of 21.7%. This increase was attributable to the use of tax losses in Egypt in 2024 that had not been recognised at the beginning of the period.

Consolidated net income totalled €116 million in the first half of 2025, up +6.3% at constant scope and exchange rates and up +1.1% on a reported basis. The net income, Vicat Group share rose +3.1% at constant scope and exchange rates and declined -1.7% on a reported basis to €102 million. This fall was attributable to the impact of higher minority interest deriving from the improvement in the results of subsidiaries in Brazil, Egypt and Turkey.

Read the article online at: https://www.worldcement.com/europe-cis/29072025/vicat-report-q2-financial-results/