France: The French cement giant Vicat Group has announced its results for 2012, which show a 20% drop in income compared to 2011. The group's consolidated sales came to Euro2.29bn, 1.2% higher than in 2011 when it took Euro2.27bn in sales.
However, Vicat's earnings before interest, tax, depreciation and amortisation (EBITDA) came to Euro437m, a 10.9% drop compared to 2011 when it had an EBITDA of Euro491m. The drop in its net income was 21.1% year-on-year, falling from Euro164m to Euro129m. The group said that the decline was the result of lower volumes of cement, concrete and aggregates, due to lower business levels in France and Egypt and lower prices in West Africa.
It highlighted particularly difficult production conditions in Egypt, caused by fuel shortages, higher energy costs in India, Egypt and Senegal and higher freight costs in India. These negative factors were partly offset by strong EBITDA growth in Kazakhstan and Turkey, improved performance in the US business and a slight improvement in EBITDA in Switzerland and Italy.
Vicat's CEO Guy Sidos said, "With its greater geographical diversity, the Vicat group confirmed the resilience of its growth model in 2012 in an operating environment that remained tough. The group capitalised on its investments in high-potential emerging markets, along with the gradual recovery in Turkey and the USA."
"Performance improved substantially in the second half and 2012 profitability remained at a satisfactory level," continued Sidos. "In addition, Vicat Sagar started operating in India, completing the group's development plan without affecting its robust financial position. From this solid base, the group has started 2013 confident of benefiting from its investments of the last six years, and with the stated intention of maximising cash flow in order to continue reducing debt before considering the next phase of its international development strategy."
Vicat's cement segment sold 17.89Mt of cement in 2012, a 0.8% drop compared to the cement sold in 2011. The segment's consolidated sales were Euro1.16bn, a 1.6% year-on-year improvement, while its EBITDA came to Euro336m, a drop of 11.5%. Vicat reported increased sales prices in France and Switzerland and Turkey. However, it saw sales reduce in the United States and west Africa.
In its native France, Vicat's took Euro879m in sales, 6.8% down year-on year from Euro939m in 2011. Its French EBITDA was Euro163m in 2012, 19.1% down from Euro202m. Its cement sales in France fell by 11.6% year-on-year.
In Europe (excluding France) Vicat took Euro411m in sales, 2% higher than in 2011 when it took Euro403m. Its EBITDA in Europe was Euro105m, 2.4% up year-on-year. In terms of cement sales were up by 5.0% compared to 2011, although the first half of the year saw an 11% year-on-year drop compared to the same period of 2011.
In the United States, the group made sales of Euro196m, 18.7% higher than in 2011. Its EBITDA was a loss of Euro5m, compared to a Euro9m loss in 2011. Its cement sales were significantly up in the country, growing by 18.7%.
In Turkey, Kazakhstan and India Vicat had sales of Euro442m, a 17% improvement over 2011, when it took Euro348m in sales. In terms of EBITDA the group improved by 23.9% year-on-year, increasing from Euro92m in 2012 from Euro74m in 2011. Its cement sales in these countries were up by 10.9% year-on-year, with average sales prices rising throughout the year.
In Africa and the Middle East, the group took Euro364m in sales, 11.3% down year-on-year, and had an EBITDA of Euro83m, 31.9% lower than in 2011. Notable problems included a 27% fall in sales in Egypt due to gas delivery disruption and ongoing civil unrest. In west Africa, sales were down by 5.2%. The decline here was due to a fall in sales prices.