Buzzi (BZU) H1 2024 earnings summary

Executive summary

• Net sales for H1 2024 were €2,053.6 million, down 4.5% year-over-year, with volumes impacted by weak demand in Central Europe and adverse weather in Italy and the US.

• Cement and ready-mix concrete volumes declined by 8.0% and 8.8% year-over-year, with price increases partially offsetting volume declines.

• Recurring EBITDA was €548.3–€553 million, down about 4% year-over-year, but EBITDA margin remained strong at 26.7%.

• Net profit for H1 2024 was €421.7–€422 million, down about 2.2% year-over-year.

• Net cash position improved by €100 million since FY 2023, reaching €898.4 million at the end of June 2024.

Financial highlights

• Cement sales: 12.0 million tons (-8.0% YoY); ready-mix concrete: 4.7 million m³ (-8.8% YoY).

• Net sales: €2,053.6–€2,054 million (-4.5% YoY); like-for-like, down 3.1%.

• Recurring EBITDA: €548.3–€553 million (margin 26.7% vs. 26.6% in 2023).

• EBIT: €425.4 million (vs. €447.1 million in 2023).

• Cash generated from operations increased to €423.5 million, 20.6% of sales.

• Capex rose to €226.1–€226 million, including €35 million for environmental and decarbonization projects.

Outlook and guidance

• Full-year 2024 recurring EBITDA is expected to be very close to or match 2023's record level.

• Construction activity is expected to improve in H2 2024, except for subdued investments in Central Europe.

• Civil engineering works remain the main industry driver, especially in Italy and the US.

• Central Europe demand expected to remain weak but less negative; Poland may see recovery.

• Acquisition of the remaining 50% of the Brazilian JV is expected to close in October 2024.