Vicat (VCT) H1 2024 earnings summary

Executive summary

• Organic sales growth of 4.8% in H1 2024, with strong performance in the US, India, and Egypt, and improved cost-price dynamics across most markets.

• EBITDA increased 12.3% to €353 million, outpacing sales growth, led by the US, India, and Egypt.

• Carbon intensity reduced by 3% year-over-year to 575 kg CO2 per ton of cement equivalent, advancing toward the 497 kg target.

• Net income increased 4.8% to €115 million, with Group share up 10.1% to €104 million.

• Priorities include restoring margins above 2021 levels, reducing net debt, and advancing the climate roadmap.

Financial highlights

• Consolidated sales reached €1,937 million, up 1.3% reported and 4.8% like-for-like from H1 2023.

• EBITDA margin improved to 18.2% from 16.4% in H1 2023, but remains below 2021 levels.

• Recurring EBIT rose 13% to €188 million; net income increased 4.8% to €115 million.

• Capital expenditures reached €186 million in H1 2024, up from €143 million in H1 2023, mainly due to strategic investments.

• Free cash flow was -€23 million in H1 2024, down from €61 million in H1 2023, due to seasonal working capital and higher capex.

Outlook and guidance

• Full-year 2024 EBITDA expected to grow 3–8% over 2023 (€740 million), with narrowed guidance based on H1 performance.

• Capex target for 2024 reiterated at €325 million.

• Leverage ratio targeted below 1.7x by end-2024 and below 1.3x by end-2025.

• Limited sales growth expected in 2024, supported by US and emerging markets, despite European residential sector weakness.

• Country-specific outlook: US and India to drive growth; France and Europe face residential sector weakness; Turkey and Egypt challenged by inflation and currency.