VICAT : 2015 sales : €2.46 billion

Microsoft Word - PR FY 2015 Sales VD3

VICAT INVESTOR CONTACTS:

STÉPHANE BISSEUIL TEL.: [phone]

[e-mail]

2015 sales: €2.46 billion

• Sales growth of +1.5% on a reported basis in 2015
• Top-line growth in the United States and Asia
• Lower sales in West Africa and the Middle East
• Stable revenues in the fourth quarter, marked by renewed growth in France

  
  

  Paris La Défense, 4 February 2016: The Vicat group (Euronext Paris: FR0000031775 - VCT) has today reported full-year 2015 sales of

  €2,458 million, up +1.5% compared with the previous year. At constant scope and exchange rates, the Group's sales fell by -4.4% compared with 2014. In the fourth quarter, sales were stable (-0.1%) on a reported basis and slightly down (-1.6%) at constant scope and exchange rates.

  
  

  Consolidated sales by business segment:

  
  

  (€ million)	Full-year 2015	Full-year 2014	Change (%)
  			Reported	At constant scope and exchange rates
  Cement	1,256	1,261	-0.4%	-5.9%
  Concrete &	892	860	+3.7%	-2.8%
  Aggregates
  Other Products	310	301	+2.9%	-2.6%
  & Services
  Total	2,458	2,423	+1.5%	-4.4%

  VICAT PRESS CONTACTS:

  MARION GUERIN

  TEL.: [phone]

  marion.guerin@tbwa- corporate.com

  
  

  HEAD OFFICE:

  
  

  TOUR MANHATTAN 6 PLACE DE L'IRIS F-92095 PARIS - LA DEFENSE CEDEX

  TEL.: [phone]

  FAX: [phone]

  
  

  A FRENCH REGISTERED COMPANY WITH SHARE CAPITAL OF €179,600,000

  EEC IDENTIFICATION: FR 92 - 057 505 539

  RCS NANTERRE

  Commenting on these figures, the Group's Chairman and CEO said: "The sales growth achieved by the Vicat group in 2015 again reflected a contrasting picture from one region to another. Business momentum in the United States and Asia helped to offset the impact of a more challenging macroeconomic and competitive environment in West Africa and the Middle East, as well as in Europe.

  Notably, the Group's activity returned to growth in France in the fourth quarter, helped by a positive weather effect and a stabilising industry environment.

  Against this backdrop, Vicat remains focused on its objectives of maximising its cash flow and reducing its debt, while leveraging the efficiency of its manufacturing facilities, its geographical diversification and its strong positions in its local markets."

  
  

  
  

  Full-year 2015 consolidated sales came to €2,458 million, representing an increase of

  +1.5% and a decline of -4.4% at constant scope and exchange rates compared with 2014.

  A breakdown of operational sales by segment showed:

• growth in the Cement business of +0.8% on a reported basis (down -4.8% at constant scope and exchange rates);

• an increase in the Concrete & Aggregates business of +3.6% on a reported basis (down -2.8% at constant scope and exchange rates);

• stability (+0.4%) in Other Products & Services on a reported basis (down -3.6% at constant scope and exchange rates).

  As a result, an analysis of operational sales by the Group's various businesses shows a very small decrease in the contribution from Cement, which stood at 53.2% of operational sales, down from 53.7% in full-year 2014. The Concrete & Aggregates business accounted for 32.5% of operational sales, compared with 31.9% in 2014. Lastly, Other Products & Services now accounts for 14.3% of operational sales in 2015, compared with 14.4% in 2014.

  Fourth-quarter 2015 consolidated sales came to €575 million, stable (-0.1%) compared with the same period of 2014, and slightly down (-1.6%) at constant scope and exchange rates.

  Operational sales advanced in the fourth quarter by +1.1% on a reported basis and was stable (-0.4%) at constant scope and exchange rates. This overall trend reflected:

• a contraction in the Cement business by -4.7% on a reported basis (-4.6% at constant scope and exchange rates);

• a healthy increase of +9.2% in the Concrete & Aggregates business (+5.3% at constant scope and exchange rates);

• a +5.1% increase in the Other Products & Services business (+3.1% at constant scope and exchange rates).

In this press release, and unless indicated otherwise, all the changes are stated for 2015 on an annual basis (2015/2014), and at constant scope and exchange rates.

1. Geographical breakdown of consolidated full-year 2015 sales

1. France

   
   

   (€ million)	Full-year 2015	Full-year 2014	Change (%)
   			Reported	At constant scope
   Consolidated sales	777	831	-6.5%	-6.5%

   
   

   Consolidated sales in France fell -6.5% at constant scope and exchange rates to

   €777 million. Consolidated sales returned to brisk growth of +4.0% in the fourth quarter, benefiting from supportive weather conditions, but also confirming the gradual stabilisation in the market at a historically low level.

   • In the Cement business, operational sales declined -4.8% over the period as a whole (consolidated sales down -3.1%). This decline was chiefly attributable to a volume contraction of less than -2% and a slight decrease in average selling prices.

     • Operational sales recorded by the business grew by +7.2% in the fourth quarter (consolidated sales rose by +9.6%). Following declines in operational sales of -14.1% in the first quarter, -7.5% in the second quarter and -3.3% in the third quarter, the growth recorded in the final quarter confirms the change in the expected turnaround in this market. This growth also benefited from favourable weather conditions, especially in the regions in which Vicat operates. The firming-up in business trends in the final quarter was driven by volume growth of close to +13% compared with the previous year. Conversely, average selling prices recorded a steeper decline in the final quarter as a result of adjusted end-of-year rebates linked to the strong volume growth during this period and an unfavourable geographical and product mix.

       
       

   • In the Concrete & Aggregates business, operational sales fell back

     -11.3% (consolidated sales down -11.5%) over the full year. The volume contraction of just under -10% in Concrete and slightly over -9% in Aggregates during the period reflected the impact of weak demand in a challenging macroeconomic environment, as well as far less favourable weather conditions than in 2014 over the first part of the year. Selling prices posted a slight increase in Aggregates, but declined slightly in Concrete.

     • After the very steep operational sales contraction in the first three quarters, the trend of a progressive stabilization has been confirmed in the

       
       

       
       

       fourth quarter with a limited decrease of -1.0%. In this final quarter, volumes delivered were stable (-0.3%) in Concrete and increased by close to +3% in Aggregates. Average selling prices declined in Concrete and posted a healthy increase in Aggregates.

       
       

       • In the Other Products & Services business, operational sales fell -2.2% over the full year (up +1.1% on a consolidated basis). The fourth quarter confirmed the firmer trend seen in the third quarter, with operational sales advancing by +8.3% (growth of +9.3% on a consolidated basis).

       
       

2. Europe (excluding France)

   
   

   (€ million)	Full-year 2015	Full-year 2014	Change (%)
   			Reported	At constant scope and exchange rates
   Consolidated sales	425	418	+1.7%	-10.2%

   
   

   Full-year 2015 sales recorded in Europe excluding France rose by +1.7% on a reported basis, but fell -10.2% at constant scope and exchange rates.

   In the fourth quarter, sales dropped -3.9%, with a decline of -12.8% at constant scope and exchange rates.

   
   

   In Switzerland, the Group's consolidated sales grew by +3.1% in 2015. At constant scope and exchange rates, they declined by -9.4%. This contraction reflected an unfavourable base of comparison created by the exceptionally mild weather conditions of the first quarter of 2014, the end of a number of major projects in the second half of 2014 and an unfavourable pricing effect.

   In the fourth quarter, sales declined by -3.1% on a reported basis and by

   -12.5% at constant scope and exchange rates.

   • In the Cement business, operational sales rose by +1.1%, but declined -11.2% at constant scope and exchange rates. Consolidated sales moved up +1.8%, but fell back -10.5% at constant scope and exchange rates. Volumes declined by close to -7% over the period by comparison with the very brisk trends recorded in 2014. Average selling prices dropped significantly owing to fiercer competition and a contraction in the construction market.

     • Fourth-quarter operational sales dropped back -8.3% on a reported basis and by -17.1% at constant scope and exchange rates (consolidated sales down -23.0%). This contraction was attributable to a volume decline of -12% and a significant fall in prices in the third quarter.