Vicat (VCT) Q3 2024 TU earnings summary

Executive summary

• Organic sales grew 3.3% over nine months, with strong US gains and resilience in emerging markets offsetting weak European residential and Asian markets.

• Strategic combination with Koramic/VPI+Cermix created a French leader in construction chemicals with €200 million annual sales, 60% owned by the group.

• 2024 EBITDA growth guidance confirmed at 3%-8%, with leverage ratio targeted below 1.7x by year-end.

Financial highlights

• Nine-month 2024 sales: €2,916 million, down 1.5% reported, up 3.3% like-for-like; Q3 sales: €979 million, down 6.6% reported, up 0.7% like-for-like.

• Currency effects, notably from Turkish lira, Egyptian pound, and Brazilian real, negatively impacted sales by €73 million in Q3.

• U.S. sales now represent 19% of group sales, up 1.3 percentage points year-over-year.

• Italy posted 12% sales growth, while France and Switzerland saw volume declines but stable prices.

• Cement volumes for nine months: 21,312 thousand tonnes, down 1.0% year-over-year.

Outlook and guidance

• 2024 EBITDA growth target confirmed at 3%-8%, with leverage ratio targeted below 1.7x by year-end and below 1.3x by end-2025.

• CapEx for 2024 expected at ~€325 million, with significant decrease planned for 2025.

• Priorities: restore EBITDA margin above pre-crisis level (19.8% in 2021), deleverage, and execute the climate roadmap.

• U.S. expected to see further growth in 2025, with European residential market stabilizing and Senegal kiln ramp-up boosting H2 Africa performance.