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VICAT

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Vicat : 20210505_First-quarter 2021 Sales_Vicat.pdf

05/05/2021 | 12:13pm EDT

Press Release

L'Isle d'Abeau, 5 May 2021

First-quarter 2021 sales

  • First-quarter2021 consolidated sales of €707 million, up +22.1% at constant scope and exchange rates
  • Solid business growth in all regions
  • Pandemic situation still a concern, with limited impact on activity compared with the first quarter of 2020

Consolidated sales

First-quarter

First-quarter

Change

Change

(at constant scope and

(€ million)

2021

2020

(reported)

exchange rates)

France

255

211

+21.0%

+20.7%

Europe (excluding France)

87

86

+0.5%

+2.6%

Americas

142

134

+6.3%

+22.8%

Asia

81

+24.0%

+37.4%

100

Mediterranean

43

33

+30.0%

+61.3%

Africa

71

+13.0%

+13.4%

80

Total

707

615

+14.9%

+22.1%

Commenting on these figures, Guy Sidos, the Group's Chairman and CEO said: "The Vicat group's performance over the first three months of 2021 reflects the dynamic trends in our markets and once again demonstrates the effectiveness of our business strategy and our geographical portfolio. With the pandemic situation still a concern, the measures we have taken since the first half of 2020 have enabled us to seize growth opportunities in our markets and capitalise on governments' economic stimulus measures, especially those targeting the construction sector. Lastly, the Group benefited from a favourable base of comparison during the first quarter, especially in France, India and Italy.

Against this backdrop, The Group continues to commit further technological and financial resources to accelerate its ecological and digital transition."

1

Press Release

First-quarter 2021 sales

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 andexchange rates.
  • The alternative performance measures (APMs), such as "at constant scope and exchange rates", "operational sales", "EBITDA", "EBIT", "net debt", "gearing" and "leverage" are definedin 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 informationabout Vicat is available from its website (www.vicat.fr).

-----------------------------------------------------------------------------------------------------------------------------------

The Vicat Group's consolidated sales in the first quarter of 2021 came to €707 million, up +14.9% on a reported basis and up +22.1% at constant scope and exchange rates compared with the same period of 2020. This reported increase reflects:

  • a negative currency effect of -7.4% given the appreciation in the euro against all the other currencies to which the Group has exposure
  • and, organic growth of +22.1%

It's worth noting that:

  • given the seasonal variations in Vicat's business activities, first-quarter performance should not be considered as representative of the performance that the Group is likely to post over the full year;
  • the Group reaped the benefit of a highly favourable base of comparison in the first quarter given the impact of the pandemic and the government measures taken to address it in March 2020, and more generally during the first six months of 2020, especially in France, India and Italy;
  • the first-quarter performance not only exceeded that recorded in the same period of 2020, but also that reported in the first quarter of 2019, across all regions.

Progressions in operational sales by business were as follows:

  • Cement posted a +15.1% increase on a reported basis and a +24.4% rise at constant scope and exchange rates;
  • Concrete & Aggregates posted a +10.6% increase on a reported basis and a +16.6% increase at constant scope and exchange rates;
  • and, lastly, Other Products & Services posted a +22.5% increase on a reported basis and a +24.4% rise at constant scope and exchange rates.

2

Press Release

First-quarter 2021 sales

1. Consolidated sales in the three months ended 31 March 2021 by geographical region

1.1. France

(€ million)

First-quarter

First-quarter

Change

Change

(at constant scope and

2021

2020

(reported)

exchange rates)

Sales

255

211

+21.0%

+20.7%

Over the first three months of the year, the Group's performance in France moved higher despite the pandemic, in line with the trend seen in late 2020. In addition, the base of comparison for the quarter was favourable given the very sharp slowdown in the first quarter of 2020 as a result of the government measures taken at the beginning of the first lockdown.

  • In the Cement business, operational sales rose +16.3% at constant scope over the period as a whole as a result of the favourable base of comparison in the first quarter of 2020 and a supportive industry environment in the Group's markets. These factors helpedoffset the impact of the more unfavourable weather conditions and the fact there was one business day less than in the same period of 2020. This volume growth was accompanied by a hike in selling prices in the domestic market.
  • The operational sales recorded by the Concrete & Aggregates business rose +21.9% at constant scope (up +22.6% on a reported basis). This performance was underpinned by volume growth in concrete and aggregates. Selling prices moved higher in aggregates and were stable in concrete.
  • In the Other Products & Services business, operational sales advanced +24.1% at constant scope over the period.

1.2 Europe (excluding France)

(€ million)

First-quarter

First-quarter

Change

Change

(reported

(at constant scope and

2021

2020

)

exchange rates)

Sales

87

86

+0.5%

+2.6%

In Europe (excluding France), there was a stark contrast in activity trends between Switzerland and Italy. The Swiss market was barely affected by the pandemic during the first quarter of 2020 and posted a slight increase in the first quarter of this year. Conversely, trends in Italy, where the pandemic and macroeconomic situation was very challenging in the first quarter of 2020, were boosted by this highly favourable base of comparison.

In Switzerland, the Group's consolidated sales climbed +1.9% at constant scope and exchange rates (down -0.3% on a reported basis). Business in the country continued as normal with no significant impact on sector conditions arising from the pandemic.

3

Press Release

First-quarter 2021 sales

  • In the Cement business, operational sales grew by +4.4% at constant scope and exchange rates thanks to solid market trends as well as in the waste recovery activity. Selling prices dipped slightly as a result of an unfavourable customer mix.
  • In the Concrete & Aggregates business, operational sales declined -12.7% at constant scope and exchange rates due to less favourable weather conditions than in the first quarter of 2020. Selling prices picked up in the first quarter, however.
  • The Other Products & Services business recorded an +18.3% increase in sales at constant scope and exchange rates in a market that remains highly competitive.

In Italy, consolidated sales rose +14.4% over the period thanks to the favourable base of comparison created by the business shutdown for several days in the first quarter of 2020.

1.3 Americas

(€ million)

First-quarter

First-quarter

Change

Change

(at constant scope and

2021

2020

(reported)

exchange rates)

Sales

142

134

+6.3%

+22.8%

Despite a still concerning pandemic situation, especially in Brazil, activity levels remained strong in both the United States and Brazil. Growth in Brazil that began from the third quarter of 2020 continued in the first quarter of 2021.

In the United States, the macroeconomic and sector environment remained supportive throughout the first quarter. The Group's consolidated sales rose +12.6% at constant scope and exchange rates to €107 million.

  • In the Cement business, operational sales rose +7.6% at constant scope and exchange rates in the first quarter of 2021 on the back of solid trends in the Group's markets and increases in selling prices. To note, a new price increase was passed on April 1, 2021.
  • In the Concrete business, operational sales rose +14.4% at constant scope and exchange rates thanks to solid market trends, especially in the South-East region, and in average selling prices, especially in California.

In Brazil, consolidated sales came to €35 million, up +18.1% on a reported basis and up +58.5% at constant scope and exchange rates. Business continued to grow at a rapid pace in a dynamic market despite a still very concerning pandemic situation. As a result, the safety of its employees, its suppliers and its customers remains the Group's priority.

  • In the Cement business, operational sales posted a solid increase at €29 million, driven by a strong progression in demand and in selling prices.
  • In the Concrete & Aggregates business, in line with the increase of the Cement business, operational sales settled at €10 million. The improvement in market conditions was accompanied by a rise in selling prices, both in concrete and in aggregates.

4

Press Release

First-quarter 2021 sales

1.4 Asia (India and Kazakhstan)

(€ million)

First-quarter

First-quarter

Change

Change

(at constant scope and

2021

2020

(reported)

exchange rates)

Sales

100

81

+24.0%

+37.4%

The Asia region continues to be severely affected by the pandemic crisis, which is impacting the macroeconomic and sector environment, but to a lesser extent than in the first quarter of 2020. While the industry situation in India remained more favourable in the first quarter of this year than it was in 2020, the country has been hit by a new and highly aggressive wave of the pandemic over the past few weeks. As things stand, the measures taken by the government to counter the situation have enabled the Group to continue operating free of any production- or business-related restrictions, unlike in the first half of 2020, when both the Group's plants had to shut down completely for 30 days. In this uncertain context, the Group remains focused on implementing measures to keep its employees, its suppliers and its customers safe.

Taking these factors into account and given the favourable base of comparison in the first quarter of 2020, business trends in India remained strong during the first quarter as a result of the supportive market environment. The Group recorded consolidated sales of €89 million in the first three months of the year, up +41.7% at constant scope and exchange rates, reflecting the resumption in large projects and the improvement in selling prices.

Consolidated sales in Kazakhstan came to €11 million, up +12.1% at constant scope and exchange rates. This performance was driven by solid trends in the domestic market, which made up for the contraction in exports. Given this favourable geographical mix and the dynamic trends in the domestic market, selling prices recorded a significant increase.

1.5 Mediterranean (Egypt andTurkey)

(€ million)

First-quarter

First-quarter

Change

Change

(reported

(at constant scope and

2021

2020

)

exchange rates)

Sales

43

33

+30.0%

+61.3%

The Mediterranean region remains affected by the deterioration in the macroeconomic and sector situation, although this is gradually improving in Turkey. In Egypt, the security situation and the competitive environment remained a challenge in the first quarter.

In Turkey, while the continuing depreciation in 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 totalled €28 million, up +77.4% at constant scope and exchange rates (up 34.3% on a reported basis) . Due to the strong seasonality in activity in this region, it's important to note that first quarter progressions should not be considered as representative of an expected performance for the full-year.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Vicat SA published this content on 05 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2021 16:12:04 UTC.


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Financials
Sales 2021 2 930 M 3 495 M 3 495 M
Net income 2021 179 M 213 M 213 M
Net Debt 2021 1 251 M 1 492 M 1 492 M
P/E ratio 2021 10,6x
Yield 2021 3,56%
Capitalization 1 860 M 2 219 M 2 219 M
EV / Sales 2021 1,06x
EV / Sales 2022 1,00x
Nbr of Employees 9 731
Free-Float 35,5%
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Technical analysis trends VICAT
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
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Mean consensus BUY
Number of Analysts 8
Last Close Price 42,15 €
Average target price 50,15 €
Spread / Average Target 19,0%
EPS Revisions
Managers and Directors
NameTitle
Guy Dominique Louis Sidos Chairman & Chief Executive Officer
Hugues Chomel Group Chief Financial Officer
╔ric Bourdon Chief Science Officer
Laury Barnes-Davin Research & Development Manager
Didier Petetin Chief Operating Officer
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