Vicat reports a rise in consolidated sales in its latest quarterly results

1Q14 highlights

In January – March 2014, the Vicat group’s consolidated sales increased by 9.2% y/y to €536 million. At constant scope and exchange rates this represents a rise of 14%. For the company’s cement business, operational sales improved by 13.9% at constant scope and exchange rates, and in the concrete and aggregates business 12.2% growth was recorded. The rise in sales was aided by positive market performances in Turkey, West Africa and the US, improving conditions in Egypt, greater sales volumes in France and Switzerland where weather conditions have been favourable, in addition to Vicat’s ongoing ramp-up in India. However, poor weather in Kazakhstan and the continually unfavourable economic conditions in Italy hampered growth in these regions.

In 1Q14, the cement business accounted for 52.9% of operational sales, down from 53.6% in 1Q13. The concrete and aggregates business contributed 32.4% of the total operational sales, rising from 32% in the corresponding period in 2013. The contribution from the company’s other products and services business increased slightly to 14.7%.

Regional results

• France: total consolidated sales increased by 6.6% to €197 million at constant scope. In the cement business, operational sales improved by 5.2% and sales volumes grew by more than 6%, boosted by the mild weather.
• Switzerland: increased construction activity and good weather conditions enabled consolidated sales to rise to €85 million. Cement sales volumes increased and operational sales were up 13%.
• Italy: sales volumes declined by 19.2% in 1Q14 and consolidated sales dropped 17.6% as the economy and construction sector continued to suffer.
• US: consolidated sales grew from €46 million in 1Q13 to €51 million in 1Q14, aided by the strengthening of the region’s residential construction industry and recovering business and economic activity. Operational sales in the cement business increased by 13.9% and volumes were up by 3%. In California, cement volumes rose by nearly 5%. Concrete sales also picked up, with volumes growing by 7%.
• Turkey: consolidated sales reached €44 million, 25.8% higher than in 1Q13. Operational sales for cement improved by 30.5% at constant scope and exchange rates, with moderate volume growth (3.5%).
• India: volumes were up 33.5% to approximately 1.1 million t, while consolidated sales grew by 27.2% to €47 million.
• Kazakhstan: compared to 1Q13, when weather conditions were much milder, consolidated sales in 1Q14 fell by 14% to €9 million. Volumes were down by 14% in the quarter.
• Egypt: consolidated sales reached €27 million in 1Q14, up 26.7%, and volumes increased by almost 12% as the security situation in the country improved.
• West Africa: Vicat has reported an 11.6% growth in revenue and 14% rise in volumes in this region, aided by strong export markets and developments in the construction sector, as well as a positive performance by the Senegalese market.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/europe-cis/30042014/vicat_releases_1q14_results_118/