Regulatory News:
Vicat (Paris:VCT):
▼ Strong growth in sales across all the Group’s
regions
▼ EBITDA of €740 million thanks to a strong increase in the
United States
▼ Group debt reduction (leverage ratio at 1.9x)
▼ Proposed dividend of €2.0 per share
Key figures for 2023:
(€ million)
2023
2022
Change reported
Change lfl*
Consolidated sales
3,937
3,642
+8.1%
+19.6%
EBITDA
740
570
+29.8%
+41.0%
Margin (%)
18.8%
15.7%
+3.1 pts
Recurring EBIT
433
284
+52.1%
+68.0%
Margin (%)
11.0%
7.8%
+3.2 pts
Consolidated net income
295
175
+68.3%
+88.1%
Margin (%)
7.5%
4.8%
+2.7 pts
Net income, Group share
258
156
+65.6%
+84.8%
Free cash flow
295
-121
*like-for-like, i.e. at constant scope and
exchange rates
Guy Sidos, Group Chairman and CEO commented:
“Vicat’s strong results in 2023 and the prospects hence raised
are a testament to the effectiveness of its development model. The
Group has achieved the highest EBITDA in its history; a performance
driven by the ramp-up in the Ragland plant in the United States and
the success of our commercial strategy in our various markets. I’d
like to congratulate all our teams for their hard work and their
contribution to this fine performance in 2023. Trends in emerging
markets also improved over the course of the year, especially in
Brazil and Turkey, where our profitability advanced significantly.
Nonetheless, the Group’s margins have not yet returned to their
pre-crisis levels. Despite a slowdown in Europe, Vicat should
achieve further growth in 2024, leveraging its performance in the
United States and the opportunities in emerging markets. The Group
is fully focused on its three priorities: deleveraging, restoring
its margins to pre-crisis levels and executing its decarbonation
strategy. We will be launching our “Low carbon to zero carbon”
initiative in 2024 by studying two final decarbonation projects
located in France and the United States that will capture carbon to
either stock or use it.”
Disclaimer:
- In this press release, and unless indicated otherwise, all
changes are stated on a year-on-year basis (2023/2022), and at
constant scope and exchange rates.
- The alternative performance measures (APMs), such as “at
constant scope and exchange rates”, “operational sales”, “EBITDA”,
“recurring EBIT”, “net debt” 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 Universal Registration
Document 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 on its website
(www.vicat.fr).
The 2023 consolidated financial statements were approved by the
Board of Directors on 12 February 2024. The Statutory Auditors have
completed their audit of the consolidated financial statements and
will shortly issue their report.
The Group’s 2023 sales rose +8.1% on a reported basis to
€3,937 million. Organic growth in sales was +19.6% at constant
scope and exchange rates, with all the Group’s regions making a
positive contribution. This performance was achieved as a result
of:
- +6.3% growth in Cement volumes over the year, with trends
varying from one Group market to another, including:
- A slowdown in European markets (France and
Switzerland) attributable to weakness in the residential sector; -
Dynamic trends in the Mediterranean and Asia regions; - The ramp-up
in the Ragland plant’s new kiln in the United States, which made a
strong contribution to volume growth over the year.
- Higher selling prices across almost all Vicat’s markets
amid strong cumulative inflation in production costs.
The Group’s sales were impacted by an unfavourable currency
effect of -€417 million (-9.6%) chiefly arising from depreciation
in the Turkish lira and Egyptian pound against the euro over the
year. There were no changes in the scope of consolidation during
the year.
The Group’s EBITDA increased sharply in 2023 with the
ramp-up in the Ragland plant’s kiln in the United States, the
improvement in production performance across all countries and the
effectiveness of the Group’s commercial policy. Selling price
increases offset the cumulative increase in production costs,
without restoring the Group’s margins to their previous levels. The
2023 EBITDA margin was 100 basis points below the level of 19.8%
recorded in 2021. The trend in reported EBITDA reflects a negative
currency effect of -€64 million.
At constant scope and exchange rates, the EBITDA increase
reflects:
- The performance improvement in the United States, with the
ramp-up in the Ragland plant’s new kiln. Its start-up in June 2022
had weighed on last year’s results;
- The impact of price increases introduced across almost all the
Group’s markets, which offset the cumulative increase in variable
costs linked to inflation:
- In 2023, energy costs totalled €596
million, down from €664 million in 2022 on a constant volume basis,
but well above the 2021 level of €398 million; - Core inflation
(staff and maintenance costs) was close to 10% in 2023.
- The improved production performance of the Cement business,
with greater use of alternatives to fossil fuels, which rose +3.9
points relative to 2022.
Recurring EBIT recorded a significant increase, with
margins up +320 basis points year-on-year after higher depreciation
and amortisation linked notably to the commissioning of the Ragland
plant’s new kiln.
Net financial income/(expense) fell by -€22 million
relative to 2022. This reflected the increase in the net cost of
debt, chiefly as a result of a change in the method used to account
for hedging derivatives introduced in July 2022.
Tax expense declined €7 million compared with 2022. The
effective tax rate was 16.8%, well below the 2022 rate of 28.6%.
This reduction in tax expense was the product of non-recurring
items (adoption in Turkey of hyperinflationary rules by the local
tax authorities and the cancellation of a deferred tax liability
following a merger between subsidiaries in Brazil), which gave rise
to a deferred tax benefit. Adjusted for these non-recurring items,
the effective tax rate was comparable to the 2022 rate.
Consolidated net income totalled €295 million, up +88.1%
at constant scope and exchange rates and up +68.3% on a reported
basis relative to 2022, which lifted the net margin to 7.5% of
sales.
Net income, Group share rose +84.8% at constant scope and
exchange rates and +65.6% on a reported basis to €258 million.
1. RESULTS BY GEOGRAPHICAL REGION
1.1. France
(€ million)
2023
2022
Change reported
Change lfl*
Consolidated sales
1,211
1,177
+2.8%
+2.8%
EBITDA
212
172
+23.3%
+23.3%
Recurring EBIT
111
75
+47.2%
+47.2%
*like-for-like, i.e. at constant scope and
exchange rates
In 2023, the Group’s business trends in France were mixed.
Cement volumes contracted slightly, and concrete and aggregates
volumes declined more significantly, whereas selling prices rose,
offsetting the cumulative rise in energy costs and inflation (staff
and maintenance costs). EBITDA in France recovered over the period,
benefiting from a favourable base of comparison effect relative to
2022. This effect derived from the sudden and substantial increase
in energy costs recorded in the second half and from the costs
arising from the operational upgrade of the Montalieu plant in the
first quarter of that same year.
Cement volumes, which had remained resilient in the first half
of the year when volumes declined only slightly, fell more
significantly in the second half by comparison with the same period
of 2022. The Cement business was affected by the slowdown in
residential construction in France. Non-residential construction
also experienced a slowdown, while public works projects held up.
The price hikes introduced at the beginning of the year helped
offset the cumulative increase in energy prices in France,
especially electricity (more than double historic costs) and other
expense items (staff and maintenance expenses). As a result, the
operational sales recorded by the Cement business rose +11.2% at
constant scope in 2023 and EBITDA posted a significant
improvement.
Concrete & Aggregates sales were affected in 2023 by a
contraction in volumes triggered by the slowdown in residential
construction and by the low level of public roadbuilding projects,
which consume large volumes of aggregates. Price hikes were
introduced during the year in both concrete and aggregates to cover
the substantial rise in costs since 2022. Concrete & Aggregates
operational sales declined -1.9% at constant scope in 2023, and
EBITDA increased slightly.
Other Products & Services sales and EBITDA posted a small
decline.
1.2 Europe (excluding France)
(€ million)
2023
2022
Change
reported
Change lfl*
Consolidated sales
407
388
+4.9%
+1.7%
EBITDA
101
85
+19.1%
+15.3%
Recurring EBIT
66
51
+29.0%
+25.0%
*like-for-like, i.e. at constant scope and
exchange rates
Cement volumes continued to contract during the second half
in Switzerland. This trend mirrored the decline in the first
six months of 2023 caused by the weakness in residential markets
and public works. Prices moved higher following the hikes
introduced at the beginning of the year to offset the effects of
the cumulative inflation in costs, especially energy. Cement
operational sales rose +4.4% at constant scope and exchange rates
in 2023 and EBITDA posted a large increase, which was supported by
an encouraging production performance.
Concrete & Aggregates operational sales in Switzerland edged
-1.6% lower at constant scope and exchange rates in 2023. The
volume weakness was only partially offset by the hikes in concrete
& aggregates prices. EBITDA moved lower over the year as a
whole.
Other Products & Services sales and EBITDA were stable in
Switzerland.
In Italy, consolidated sales rose +12.3% at constant
scope in 2023 amid stable volumes and a hike in selling prices
relative to the previous year. Overall, EBITDA also moved higher,
despite being held back by higher intrants and energy costs.
1.3 Americas
(€ million)
2023
2022
Change reported
Change lfl*
Consolidated sales
979
860
+13.9%
+15.8%
EBITDA
216
135
+59.9%
+62.5%
Recurring EBIT
139
72
+92.4%
+95.3%
*like-for-like, i.e. at constant scope and
exchange rates
In 2023, the Group’s sales in the Americas region posted
a very significant increase. They were supported by favourable
pricing conditions and by the strong volume growth generated by the
ramp-up in the Ragland plant’s new kiln (US). In the United States,
EBITDA totalled €151 million during 2023, representing an increase
of +76.4% at constant scope and exchange rates relative to
2022.
In the United States, Cement volumes achieved further
growth in the second half as the Ragland plant’s new kiln continued
to ramp up. It reached its full nominal capacity in the fourth
quarter. Demand in the South-East US held up at a high level thanks
to the boost provided by the local infrastructure programmes
launched in 2021 (IIJA1) and by the IRA2, which champions
reindustrialisation across the United States. The new rail
terminals that have opened in Georgia and Tennessee expanded the
Ragland plant’s catchment area and supported the ramp-up in its
output. This strong volume increase in the South-East US largely
offset the fall in volumes in California caused by unfavourable
meteorological conditions in the first half of the year. Prices
remained firm in both regions, with further hikes introduced at the
end of the summer to offset the cumulative effects of inflation
over the past two years. Cement operational sales rose +27.5% in
the United States at constant scope and exchange rates in 2023.
EBITDA increased sharply at constant scope and exchange rates.
The Concrete business in the United States also delivered growth
in 2023. Dynamic market conditions in the South-East more than
offset the volume contraction in California against the backdrop of
more sluggish local market conditions than in 2022. Selling prices
again moved higher in both regions. Concrete operational sales rose
+18.9% in the United States at constant scope and exchange rates in
2023. EBITDA surged higher on a year-on-year basis.
Amid broadly resilient macroeconomic conditions in 2023, the
Cement business in Brazil recorded a volume contraction as a
result of slower demand. Prices remained stable in the second half
by comparison with 2022, but were higher on a year-on-year basis.
Cement operational sales in Brazil fell -1.0% at constant scope and
exchange rates. EBITDA hit a record high in 2023. The substantial
increase was driven by a tight grip on production costs, strong
acceleration in the use of alternative fuels and the addition of
activated clays to cement, which helped lower CO2 emissions per
tonne produced.
The Concrete & Aggregates business showed resilience, with
aggregates and concrete volumes stable over the year. Concrete
prices moved higher, while aggregates prices held stable in 2023.
Concrete & Aggregates operational sales rose +9.8% in Brazil at
constant scope and exchange rates in 2023, and EBITDA posted a
smaller increase.
1.4 Asia (India and Kazakhstan)
(€ million)
2023
2022
Change
reported
Change lfl*
Consolidated sales
492
500
-1.6%
+5.4%
EBITDA
88
98
-10.2%
-4.1%
Recurring EBIT
56
64
-12.5%
-6.7%
*like-for-like, i.e. at constant scope and
exchange rates
The Group’s business in Asia recorded growth at constant
scope and exchange rates in 2023 thanks to a positive performance
in India and Kazakhstan in the second half of the year.
After a tough first six months, the Cement business in
India powered ahead in the second half, with volumes moving
higher over the year as a whole. The fall in cash costs helped
restore its competitiveness from the second half. Market conditions
remained dynamic amid pre-electoral conditions favourable for the
construction sector and were supported by a continuing drive to
develop infrastructure. In a competitive environment, selling
prices moved slightly lower over the year as a whole. Cement
operational sales in India moved up +5.6% at constant scope and
exchange rates in 2023. EBITDA also increased in local currency
terms.
After the tension seen across the rail logistics supply chain in
the first half of the year, the Cement business in
Kazakhstan recovered in the second six months of the year.
Volumes recorded strong growth in the second half of the year as an
additional fleet of wagons was secured. Prices fell back slightly
over the period amid fiercer competition. As a result, Cement
operational sales grew +5.2% in Kazakhstan at constant scope and
exchange rates. EBITDA fell significantly in 2023 as a result of
the downturn in selling prices, additional logistics costs and
higher electricity costs.
1.5 Mediterranean (Turkey and Egypt)
(€ million)
2023
2022
Change
reported
Change lfl*
Consolidated sales
464
374
+24.1%
+125.1%
EBITDA
68
44
+54.9%
+186.6%
Recurring EBIT
48
20
+142.3%
+350.0%
*like-for-like, i.e. at constant scope and
exchange rates
In 2023, the Group’s business in the Mediterranean region
was boosted by a volume recovery in Turkey and significantly higher
selling prices in local currency terms amid a hyperinflationary
environment. The business was affected by the strong fall in the
value of the Turkish lira and Egyptian pound against the euro.
Despite a hyperinflationary macroeconomic environment, the
Cement business in Turkey posted solid volume growth
throughout the year. The support provided by the government to the
construction sector and the direct and indirect effects of the
earthquake that struck south-east Turkey injected momentum into the
business. Selling prices were strongly hiked to offset the effects
of inflation on production costs. A waste heat recovery system3
commissioned at Bastas during the fourth quarter will help to lower
cash costs significantly. As a result, Cement operational sales in
Turkey grew +25.2% in 2023 (up +135.1% at constant scope and
exchange rates). EBITDA posted a significant increase thanks to a
tighter grip on costs, especially maintenance costs, during the
year and greater use of alternative fuels.
The Concrete & Aggregates business in Turkey expanded in
2023 as a result of strong growth in concrete volumes and higher
selling prices. As a result, operational sales grew +38.7% in 2023
(up +160.5% at constant scope and exchange rates). EBITDA rose
significantly.
The Cement business in Egypt experienced sluggish
domestic market conditions, with volumes declining slightly over
the year. In a competitive environment governed by the market
regulation agreement introduced by the authorities in 2021 and
renewed annually since, prices moved sharply higher in 2023. The
Group grasped opportunities to export clinker to the Mediterranean
and Africa regions, benefiting from export incentives introduced by
the government. Cement operational sales in Egypt rose +11.1% in
2023 (up +82.9% at constant scope and exchange rates). EBITDA moved
into positive territory in 2023 after a breakeven performance in
2022.
1.6 Africa (Senegal, Mali, Mauritania)
(€ million)
2023
2022
Change
reported
Change lfl*
Consolidated sales
384
343
+11.9%
+12.0%
EBITDA
54
36
+51.5%
+51.9%
Recurring EBIT
13
2
+540.8%
+545.9%
*like-for-like, i.e. at constant scope and
exchange rates
The Group’s sales in Africa rose in 2023 with the return
of volumes to normal in Mali and the full-year impact of the price
hike introduced in September 2022 in Senegal.
The Cement business in Senegal recorded a small volume
contraction in 2023. Production is expected to remain constrained
until the new kiln enters service, which is scheduled for late
2024. Conditions remain dynamic in the domestic market, which is
supported by strong residential demand and various infrastructure
projects. Prices also rose throughout the year following the most
recent hike in regulated prices in September 2022. Cement
operational sales rose +3.7% in Senegal at constant scope in 2023.
EBITDA recovered sharply over the year as a whole.
The Aggregates business in Senegal posted growth in 2023 as a
result of positive price and volume effects. It again received a
boost as major public works projects went ahead. Operational sales
grew +15.6% at constant scope in 2023. EBITDA was stable given the
increase in maintenance costs.
The Cement business in Mali benefited from the strong
market recovery after the political crisis that significantly
reduced deliveries in 2022. In 2023, operational sales grew +58.8%
at constant scope. EBITDA rose significantly.
Cement operational sales rose +15.3% in Mauritania at
constant scope and exchange rates as a result of dynamic volume and
pricing trends. EBITDA rose significantly.
2. FINANCIAL POSITION AT 31 DECEMBER 2023
(€ million)
2023
2022
2021
Gross financial debt
1,915
2,070
1,845
Cash
(493)
(503)
(527)
Net financial debt (excluding
option)
1,422
1,567
1,318
EBITDA
740
570
619
Leverage ratio (x)
1.92x
2.75x
2.13x
At 31 December 2023, the Group’s financial structure remained
solid, with a strong equity base and net debt down €145 million
year-on-year. The leverage ratio was 1.92x, down from 2.75x at 31
December 2022.
Medium- to long-term borrowings are subject to special clauses
(covenants) requiring certain financial ratios to be met. Given the
level of Group’s net debt and balance sheet liquidity, the bank
covenants do not pose a risk for the Group’s financial
position.
The Group can call on confirmed credit lines, which have not
been drawn down or assigned to hedging the liquidity risk on
commercial paper amounting to €683 million at 31 December 2023
(versus €400 million at 31 December 2022).
3. CAPITAL EXPENDITURE AND FREE CASH FLOW
(€ million)
2023
2022
2021
Maintenance capex
151
161
155
Strategic capex
178
261
232
► o/w climate capex
40
85
75
► o/w growth capex
138
176
156
Total capital expenditure
outlays
329
422
387
Proceeds from sales of non-current
assets
(29)
(14)
(11)
Total net capex outlays
300
408
376
Capital expenditure totalled €329 million in 2023, below the
level recorded in 2022. A large proportion of this capex was
devoted to the final stages of the construction of the Ragland
plant’s new kiln in the United States and continuing construction
of the new kiln in Senegal. Certain capex related to construction
of kiln 6 in Senegal, which was not disbursed in 2023, will be
committed in early 2024.
Lastly, the Group allocated €40 million in strategic capex to
reducing its carbon footprint in 2023. This €40 million allocation
does not include any “climate share” of the strategic growth
investments in kiln 2 at the Ragland plant in the United States or
in kiln 6 in Senegal, which made a strong contribution to the
Group’s climate performance. These strategic growth investments
will significantly increase the use of alternative fuels, lower the
clinker rate and improve the energy efficiency of these production
facilities and thus bring Vicat closer towards its overall
decarbonisation targets.
The Group remains committed to its climate investment target of
€800 million over 10 years. The strategic “climate” capex in 2023
and 2024 is thus likely to be below the 10-year average given the
strategic growth capex committed over this period, with a catch-up
effect anticipated over the 2026-2030 period.
Free cash flow totalled €295 million, representing a strong
improvement over the year as a result of:
- The increase in EBITDA;
- The decline in “strategic” capex following the end of the
investment cycle for the new kiln at the Ragland plant in the
United States and the calendar shift in outlays on kiln 6 in
Senegal, which will now go ahead in 2024;
- A reduction in the working capital requirement.
4. CLIMATE PERFORMANCE
2023
2022
Change
Objectives
2030
Direct specific emissions
(kg CO2 net per tonne of cement
equivalent)
588
608
-3.3%
497
Direct specific emissions in
Europe
(kg CO2 net per tonne of cement
equivalent)
501
530
-5.5%
430
Alternative fuel rate (%)
32.0%
28.1%
+3.9 pts
50.0%
Clinker rate (%)
76.8%
77.5%
-0.7 pts
69.0%
All the indicators across all the Group’s geographical regions
pointed to further improvement in Vicat’s climate performance in
2023. In Brazil, there was a strong improvement in the clinker rate
and a significant increase in use of alternative fuels.
The Vicat Group is reiterating its climate roadmap and its 2030
target of reducing its direct specific carbon emissions to 497 kg
CO2 net per tonne of cement equivalent, and 430 kg CO2 net per
tonne of cement equivalent in Europe. This objective is solely
based on existing proven technologies and does not rely on any
technological breakthroughs, such as carbon capture and
storage/use.
The “Low carbon to Zero carbon” initiative will be launched in
2024. In addition to the ongoing drive to modernise and move away
from fossil fuels in the production process, alongside the advent
of sophisticated cement compounds, the Group is studying two final
decarbonisation projects to capture carbon by stocking it or using
it to manufacture synthetic fuels at the Montalieu (France) and
Lebec (California) plants. Major public subsidies will be required
to get these projects off the ground.
5. OUTLOOK FOR 2024
In 2024, the Group expects a continued increase in its
sales, supported by growth in the United States and the
resilience of emerging markets, even taking into account the
residential sector’s weakness in Europe.
EBITDA generated by the Group
in 2024 should be higher than the 2023 level.
This objective takes into account further operational savings at
the Ragland plant and an easing in energy cost inflation over the
period, with a favourable base of comparison effect in the first
half of the year.
In 2024, the Group’s capex is likely to total around €325
million following delays to investments in a new kiln in Senegal,
which will now take place in 2024. The cumulative investment budget
for 2023 and 2024 remains unchanged.
The increase in EBITDA, tight grip on the working capital
requirement and disciplined investment approach will pave the way
for a further decrease in the Group’s net debt. As a result, the
Group has set a target of lowering its leverage to below 1.3x by
year-end 2025.
Outlook by country:
In France, business trends are expected to be held back
by the marked slowdown in residential construction, offset
partially by demand from the infrastructure segment. The
progressive start-up in a large rail infrastructure project in the
South-East region should support the business in the future.
In Switzerland, stable business trends are expected, with
volumes holding steady at a low level amid a resilient pricing
environment.
In the United States, the growth in sales in the
South-East US should continue with the operation of kiln 2 at the
Ragland plant at full capacity over a full year. In addition,
business trends in California should benefit from a favourable base
of comparison effect relative to the first half of 2023. The
increased use of alternative fuels and more widespread uptake of
“1L”-type cement, which consumes less clinker, should support
margin improvement.
In stabilising market conditions in Brazil, sales and
earnings are expected to be close to the levels seen in 2023.
Production performance improvements should provide a further
boost.
In India, the market should continue to grow, especially
in the first half thanks to a favourable base of comparison and the
full-year impact of cost reductions amid a fiercely competitive
environment.
In Kazakhstan, the more competitive environment and
saturation of the production facilities are expected to curb the
growth in volumes and prices in a country less exposed than others
to energy cost inflation.
In Turkey, the macroeconomic environment is likely to
remain dominated by inflation and the weakness of the Turkish lira.
Business trends are expected to draw strength from the
reconstruction drive after the February 2023 earthquake and the
pre-electoral environment in the first six months of the year. The
Group will continue to pursue a pricing policy intended to at least
cover the strong inflation in costs.
In Egypt, domestic market conditions are expected to
remain sluggish in a competitive environment still regulated by the
authorities. As in 2023, the Group plans to pursue opportunities to
export clinker and cement.
In West Africa, visibility is declining following
mounting political instability in the region (postponement of the
presidential elections in Senegal, Mali’s exit from Ecowas), the
impact of which is hard to gauge as things stand. In
Senegal, the Cement business will remain hampered until kiln
6 starts up in a pricing environment regulated by the
government.
6. DIVIDEND
On the strength of these full-year 2023 results showing net
profit per share of €5.76, up +65.5% on its 2022 level, and given
its confidence in the Group’s ability to continue pursuing
profitable growth, the Board of Directors decided at its meeting on
12 February 2024 to propose the distribution of a dividend of
€2.0 per share at the Group’s Annual General Meeting due to be
held on 12 April 2024.
PRESENTATION MEETING AND CONFERENCE CALL
To accompany this publication, the Vicat Group is holding an
information conference call in English on 14 February 2024 at 3pm
Paris time (2pm London time and 9am New York time).
To take part in the conference call live, dial in on one of the
following numbers:
France: +33 (0)1 70 37 71 66 United Kingdom: +44 (0)33 0551 0200
United States: +1 786 697 3501
The conference call will also be livestreamed from the Vicat
website or by clicking here. A replay of the conference call will
be immediately available for streaming via the Vicat website or by
clicking here.
The presentation supporting the event will be available from
12pm CET on Vicat’s website.
NEXT EVENTS
Annual General Meeting, 12 April 2024
First-quarter 2024 sales after the close on 29 April 2024
ABOUT THE VICAT GROUP
For 170 years, Vicat has been a leading player in the mineral
and biosourced building materials industry. Vicat is a group listed
on the Euronext Paris market and is under the majority control of
the founding Merceron-Vicat family. Committed to a trajectory that
will make it carbon-neutral across its value chain by 2050, the
Vicat Group now operates three core lines of business: Cement,
Ready-Mixed Concrete and Aggregates, as well as related activities.
The Vicat Group is present in 12 countries spanning both developed
and emerging markets. It has close to 10,000 employees and
generated consolidated sales of €3,937 million in 2023. With its
strong regional positions, Vicat is developing a circular economy
model beneficial for all and consistently innovating to reduce the
construction industry’s environmental impact.
Vicat Group – Financial data – Appendix
DEFINITION OF ALTERNATIVE PERFORMANCE MEASURES
(APMS):
- Performance at 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.
- EBITDA (earnings before interest, tax, depreciation and
amortisation): sales less purchases used, staff costs and taxes
adjusted for other income and expenses on ongoing business.
- Recurring EBIT: (earnings before interest and tax):
EBITDA less net depreciation, amortisation, additions to provisions
and impairment losses on ongoing business.
- Free cash flow: net operating cash flow after deducting
capital expenditure net of disposals and financial investments and
before the dividend payment.
- 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.
- Leverage is a ratio based on a company’s profitability,
calculated as net debt/consolidated EBITDA.
2023 INCOME STATEMENT BY BUSINESS
Cement
(€ million)
2023
2022
Change
reported
Change lfl*
Volume (thousands of tonnes)
28,839
27,140
+6.3%
Operational sales
2,526
2,296
+10.0%
+24.4%
Consolidated sales
2,153
1,964
+9.6%
+23.9%
EBITDA
544
411
+32.2%
+44.9%
Recurring EBIT
346
233
+48.8%
+64.7%
*like-for-like, i.e. at constant scope and
exchange rates
Concrete & Aggregates
(€ million)
2023
2022
Change
reported
Change lfl*
Concrete volumes (thousands of
m3)
10,020
10,023
0.0%
Aggregates volumes (thousands of
tonnes)
24,273
25,310
-4.1%
Operational sales
1,510
1,398
+8.0%
+18.6%
Consolidated sales
1,470
1,363
+7.8%
+17.9%
EBITDA
169
132
+28.6%
+37.3%
Recurring EBIT
76
42
+83.4%
+103.2%
*like-for-like, i.e. at constant scope and
exchange rates
Other Products & Services
(€ million)
2023
2022
Change
reported
Change lfl*
Operational sales
453
454
-0.3%
+4.2%
Consolidated sales
314
315
-0.2%
-0.7%
EBITDA
27
27
-1.5%
+0.3%
Recurring EBIT
10
10
+0.2%
-0.5%
*like-for-like, i.e. at constant scope and
exchange rates
PRINCIPAL 2023 FINANCIAL STATEMENTS
Consolidated Income Statement
(in thousands of euros)
Notes
2023
2022
Revenue
4
3 937 195
3 642 063
Raw materials and consumables used
(2 598 496)
(2 509 400)
Employees expenses
5
(569 002)
(528 635)
Taxes
(60 688)
(60 982)
Other operating income (expenses)
6
30 740
27 074
EBITDA
739 749
570 120
Net charges to operating depreciation,
amortization and provisions
6
(306 995)
(285 655)
Recurring EBIT
432 754
284 465
Non-operating income (expenses)
7
4 870
6 270
Net charges to non-operating depreciation,
amortization and provisions
7
(22 243)
(13 007)
Operating profit (loss)
415 381
277 728
Cost of net financial debt
(50 817)
(31 155)
Other financial income
37 773
31 900
Other financial expenses
(59 367)
(50 666)
Financial income (expenses)
8
(72 411)
(49 921)
Share of profit (loss) of associates
11.1
10 129
12 697
Profit (loss) before tax
353 099
240 504
Income tax
9
(57 771)
(65 060)
Consolidated net income
295 328
175 444
Portion attributable to minority
interests
36 903
19 357
Portion attributable to the
Group
258 425
156 086
Basic and diluted earnings per share (in
euros)
5,76
3,48
Comprehensive income
(in thousands of euros)
2023
2022
Consolidated net income
295 328
175 444
Other items not recycled to profit and
loss:
Remeasurement of defined benefit
(4 958)
30 649
Other items not recycled to profit and
loss
(1 991)
(9 744)
Tax on non-recycled items
1 339
(6 617)
Other items recycled to profit and
loss:
Changes in currency translation
adjustments
(120 911)
(20 849)
Cash-flow hedge instruments
(1 659)
7 914
Tax on recycled items
4 012
(2 053)
Other comprehensive income (after
tax)
(124 168)
(700)
TOTAL COMPREHENSIVE INCOME
171 160
174 744
Portion attributable to minority
interests
23 542
11 403
Portion attributable to the
Group
147 618
163 341
Consolidated statement of financial position
ASSETS
(in thousands of euros)
Notes
December 31, 2023
December 31, 2022
Goodwill
10.1
1 185 026
1 204 814
Other intangible assets
10.2
174 173
183 066
Property, plant and equipment
10.3
2 582 394
2 504 926
Right of use related to leases
10.4
185 416
193 122
Investment properties
30 706
32 124
Investments in associated companies
84 861
80 804
Deferred tax assets
112 229
126 212
Receivables and other non-current
financial assets
11
241 811
269 651
Total non-current assets
4 596 617
4 594 719
Inventories and work-in-progress
12.1
568 705
560 795
Trade and other receivables
12.2
491 986
464 216
Income tax receivables
3 092
45 201
Other current assets
193 487
204 690
Assets held for sale
16 910
21 780
Cash and cash equivalents
13
493 547
503 597
Total current assets
1 767 728
1 800 279
TOTAL ASSETS
6 364 344
6 394 998
SHAREHOLDERS’ EQUITY AND
LIABILITIES
(in thousands of euros)
Notes
December 31, 2023
December 31, 2022
Share capital
179 600
179 600
Additional paid-in capital
11 207
11 207
Treasury shares
(41 891)
(47 097)
Consolidated reserves
3 230 128
3 003 393
Translation reserves
(646 331)
(558 838)
Shareholders’ equity, Group
share
2 732 713
2 588 265
Minority interests
285 157
274 529
Total shareholders’ equity
14
3 017 870
2 862 794
Provisions for pensions and other
post-employment benefits
15.1
88 045
86 355
Other provisions more than one year
15.2
134 286
123 413
Financial debts and put options more than
one year
16.1
1 416 572
1 672 772
Lease liabilities more than one year
16.1
155 718
161 045
Deferred tax liabilities
9
273 349
325 188
Other non-current liabilities
18 696
21 594
Total non-current liabilities
2 086 665
2 390 367
Other provisions less than one year
15.2
21 943
12 570
Financial debts and put options at less
than one year
16.1
335 956
242 161
Lease liabilities at less than one
year
16.1
45 153
47 537
Trade and other accounts payable
17
503 490
540 374
Income tax payables
18 522
14 814
Other liabilities
334 745
284 381
Total current liabilities
1 259 810
1 141 837
Total liabilities
3 346 474
3 532 204
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
6 364 344
6 394 998
Consolidated statement of cash flow
(in thousands of euros)
Notes
2023
2022
CASH FLOWS FROM
OPERATING ACTIVITIES
Consolidated net income
295 328
175 444
Share of profit (loss) of associates
(10 129)
(12 697)
Dividends received from associated
companies
7 489
7 057
Elimination of non-monetary items:
- depreciation, amortization and
provisions
343 521
303 434
- deferred taxes
(28 680)
6 803
- net gain (loss) on disposal of
assets
(22 196)
(5 377)
- unrealized fair value gains (losses)
3 951
(14 688)
- other non-monetary items
(381)
1 055
Cash flows from operating
activities
588 900
461 031
Changes in working capital (1)
19 364
(104 132)
Net cash flows from operating
activities
18.1
608 265
356 899
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash-out related to acquisitions of
non-current assets:
- tangible and intangible assets
(328 984)
(422 356)
- financial investments
(15 115)
(28 505)
Cash-in related to disposals of
non-current assets:
- tangible and intangible assets
28 777
13 975
- financial investments
3 244
4 392
Changes in consolidation scope
(861)
(45 404)
Net cash flows from investing
activities
18.2
(312 939)
(477 898)
CASH FLOWS FROM
FINANCING ACTIVITIES
Dividends paid
(93 592)
(82 355)
Increases/decreases in share capital
Proceeds from borrowings
16
170 077
462 197
Repayments of borrowings
16
(329 194)
(138 328)
Repayment of lease liabilities
16
(51 335)
(58 414)
Purchase of treasury shares
(16 690)
(18 366)
Disposals on treasury shares
19 246
20 191
Net cash flows from financing
activities
(301 488)
184 926
Currency translation effect on net cash
and cash equivalents
(25 953)
(23 022)
Change in cash position
(32 114)
40 905
Net cash and cash equivalents - opening
balance
13.2
471 347
430 442
Net cash and cash equivalents - closing
balance
13.2
439 232
471 347
(1) - Including cash flows from income taxes: € (54) million as
of December 31, 2023 and € (81.7) million as December 31, 2022.
- Cash flows from interests paid and
received: € (34.1) million as of December 31, 2023 including €
(9.6) million for financial expenses on IFRS16 leases and € (37.6)
million as of December 31, 2022 including € (9.2) million for
interest expenses on IFRS16 leases.
Statement of changes in consolidated shareholder’s
equity
(in thousands of euros)
Share capital
Additional paid-in capital
Treasury shares
Consolidated reserves
Translation reserves
Shareholders' equity, Group
share
Minority interests
Total shareholders'
equity
At January 1st, 2022
179 600
11 207
(52 018)
2 800 579
(579 950)
2 359 418
246 681
2 606 099
IAS29 adjusments
58 610
58 610
7 313
65 923
At January 1st, 2022 restated
179 600
11 207
(52 018)
2 859 189
(579 950)
2 418 028
253 994
2 672 022
Half year net income
156 086
156 086
19 357
175 444
Other comprehensive income (1)
(13 858)
21 112
7 254
(7 954)
(700)
Total comprehensive income
142 228
21 112
163 340
11 403
174 744
Dividends paid
(73 042)
(73 042)
(9 299)
(82 341)
Net change in treasury shares
4 921
(3 030)
1 891
1 891
Change in consolidation scope and
additional acquisitions
(13 330)
(13 330)
12 458
(872)
Application of IAS29
56 602
56 602
7 165
63 767
Other changes
34 776
34 776
(1 192)
33 584
At December 31, 2022
179 600
11 207
(47 097)
3 003 393
(558 838)
2 588 265
274 529
2 862 794
At January 1st, 2023
179 600
11 207
(47 097)
3 003 393
(558 838)
2 588 265
274 529
2 862 794
Net income
258 425
258 425
36 903
295 328
Other comprehensive income (1)
(23 314)
(87 493)
(110 807)
(13 361)
(124 168)
Total comprehensive income
235 111
(87 493)
147 618
23 542
171 160
Dividends paid
(73 227)
(73 227)
(20 400)
(93 627)
Net change in treasury shares
5 206
(2 691)
2 515
2 515
Changes in scope of consolidation and
additional acquisitions
(449)
(449)
(26)
(475)
Application of IAS29
65 895
65 895
7 460
73 355
Other changes
2 096
2 096
52
2 148
At December 31, 2023
179 600
11 207
(41 891)
3 230 128
(646 331)
2 732 713
285 157
3 017 870
1 Infrastructure Investment and Jobs Act 2 Inflation Reduction
Act 3System harnessing the hot gases produced to generate
electricity
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240213062207/en/
INVESTOR RELATIONS CONTACT:
Pierre Pedrosa Tel +33 (0)6 73 25 98 06
pierre.pedrosa@vicat.fr
PRESS CONTACTS:
Karine Boistelle-Adnet Tel +33 (0)4 74 27 58 04
karine.boistelleadnet@vicat.fr
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