Vicat (VCT) H2 2024 earnings summary

Executive summary

• Achieved record EBITDA of €783M in 2024 (up 5.9% reported, 10.1% like-for-like), with organic sales growth of 2.3% despite weak European and Asian markets.

• Strong US growth, resilience in Europe, and Mediterranean progress drove EBITDA margin above 20%.

• Free cash flow rose sharply to €373M (up 26.7%), leverage reduced to 1.58x.

• Continued decarbonization: direct CO2 emissions down 2%, alternative fuel use up 4 points.

• Net income Group share increased to €273M, up 5.5% reported and 11.9% like-for-like.

Financial highlights

• Consolidated sales at €3,884M (down 1.3% reported, up 2.3% like-for-like), with a 7.2% average annual growth over five years.

• EBITDA margin improved to 20.2% (+1.4 pts year-on-year).

• Recurring EBIT rose to €457M (+5.7% reported, +11.3% like-for-like).

• Free cash flow conversion rate reached 48%, with a yield of almost 20%.

• ROCE at 8.1%, up 10bps year-over-year.

Outlook and guidance

• 2025 objectives: like-for-like sales growth, low single-digit EBITDA growth, net capex around €280M, and leverage reduction to 1.3x by year-end.

• EBITDA margin goal of at least 20% through 2027; leverage target below 1.0x by 2027.

• Dividend proposed at €2 per share (yield ~5%) for 2024.

• Acceleration in H2 2025 expected from Senegal Kiln 6 and energy cost stabilization.

• Strategic priorities: maintain EBITDA margin ≥20%, reduce debt, and accelerate climate roadmap.