Regulatory News:
Vicat Group (Paris:VCT):
- Strong increase in full-year results
- Dynamic markets and favourable pricing trends
- Solid cash generation and robust balance sheet
- Proposed dividend at €1.65 per share
Condensed 2021 income statement approved by the Board of
Directors on 11 February 2022
(€ million)
2021
2020
Change (reported)
Change (at constant scope and
exchange rates)
Consolidated sales
3,123
2,805
+11.3%
+16.2%
EBITDA
619
557
+11.1%
+14.5%
Margin (%)
19.8
19.9
EBIT
360
298
+20.8%
+24.1%
Margin (%)
11.5
10.6
Consolidated net income
222
172
+29.1%
+31.8%
Margin (%)
7.1
6.1
Net income, Group share
204
156
+30.9%
+33.3%
Cash flow
488
460
+5.9%
+8.9%
Commenting on these figures, Guy Sidos, the Group’s
Chairman and CEO said:
“The dedication of Vicat's teams supported the rise of the
Group's results during a year that was contrasted in a mirror
effect of the previous year.
Conditions in our markets remained dynamic, supported by
favourable pricing trends in a context of sustained demand. This
offsets the sharp rise in energy costs and wage increases.
Through innovation successes and relevant investment choices,
focused on the decarbonisation of both its manufacturing processes
and of its marketed products, the Vicat Group remains focused on
achieving its objectives of reducing its carbon footprint and
pursuing profitable growth.”
Disclaimer:
- In this press release, and unless indicated otherwise, all
changes are stated on a year-on-year basis (2021/2020), and at
constant scope and exchange rates.
- The alternative performance measures (APMs), such as “at
constant scope and exchange rates”, “operational sales”, “EBITDA”,
“EBIT”, “net debt”, “gearing” and “leverage” are defined in the
appendix to this press release.
- This press release may contain forward-looking statements. Such
forward-looking statements do not constitute forecasts regarding
results or any other performance indicator, but rather trends or
targets. These statements are by their nature subject to risks and
uncertainties as described in the Company’s annual report available
on its website (www.vicat.fr). These statements do not reflect the
future performance of the Company, which may differ significantly.
The Company does not undertake to provide updates of these
statements.
Further information about Vicat is available from its website
(www.vicat.fr).
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In 2021, the Group’s business grew sharply given the dynamic trends
in its markets and a favourable pricing environment, almost
completely offsetting the steep rise in energy costs recorded in
the second half of the year. Certain markets continued to
experience disruption as a result of the persistent pandemic
situation in 2021, but the construction sector was able to continue
operating as a result of the measures introduced.
Overall, the Group’s consolidated sales totalled €3,123
million, up from €2,805 million in 2020, representing an +11.3%
rise on a reported basis and a +16.2% increase at constant scope
and exchange rates.
The trend in consolidated sales on a reported basis
reflects:
- organic business growth of +16.2%, supported by dynamic market
conditions across all the Group’s business areas and supportive
pricing trends;
- an unfavourable currency effect of -3.6%, representing a
negative impact of €-102 million over the full year as a result of
the appreciation of the average rate of the euro and the
depreciation of the Turkish lira;
- and a scope effect of -1.2%, resulting in a negative impact of
€-34 million, chiefly reflecting the sale of Créabéton Matériaux in
Switzerland, partly offset by small acquisitions within concrete in
France.
The Group’s operational sales totalled €3,558 million, up
+11.5% on a reported basis and up +16.3% at constant scope and
exchange rates. Each of the Group’s businesses contributed to this
positive trend. In the Cement business, sales (€1,914 million) rose
+14.4% on a reported basis and +18.8% at constant scope and
exchange rates. In the Concrete & Aggregates business,
operational sales (€1,191 million) rose by +10.0% on a reported
basis and by +13.1% at constant scope and exchange rates. Lastly,
the Other Products & Services business (€453 million) increased
by +4.3% on a reported basis and up +14.8% at constant scope and
exchange rates.
The Group’s consolidated EBITDA totalled €619 million in
2021, representing an increase of +11.1% on a reported basis and of
+14.5% at constant scope and exchange rates. EBITDA margin was
19.8%, stable versus 2020. Reported EBITDA reflects an unfavourable
currency effect of nearly €-17 million, a negative scope effect of
slightly over €-2 million and, lastly, organic growth of close to
€+81 million.
At constant scope and exchange rates, the increase in EBITDA was
driven by:
- dynamic business trends across all markets;
- generally favourable pricing trends, which largely offset the
inflation in energy costs (+18% over the full year);
- a steep reduction in the operating loss previously recorded in
Egypt.
EBIT totalled €360 million compared with €298 million in
2020. This represented an increase of +20.8% on a reported basis
and of +24.1% at constant scope and exchange rates. The EBIT margin
on consolidated sales came to 11.5%, an increase of +90 basis
points (9.7% in 2019).
The Group’s operating profit totalled €336 million,
representing a rise of +21.2% on a reported basis and of +24.0% at
constant scope and exchange rates. This performance was largely
attributable to improvements in operating profitability at both
EBITDA and EBIT levels. It also reflects an additional write-off of
nearly €16 million on loans linked to investments in Egypt.
The €-5 million improvement in net financial expense (to
€-30 million in 2021 from €-35 million in 2020) largely reflects
the reduction in the Group’s average cost of debt, as well as the
positive change in hedging instruments, given the rise in interest
rates over the last few months of 2021.
Tax expense rose by €-15 million as a result of the
higher pre-tax income. The effective tax rate was lower than at 31
December 2020, falling from 30.7% to 29.1% in 2021. The key factors
behind the reduction in the tax rate were the decline in the tax
rate in France and a favourable country mix.
Consolidated net income was €222 million in 2021,
representing a large rise of +31.8% at constant scope and exchange
rates and of +29.1% on a reported basis.
Net income, Group share rose to €204 million, up by
+33.3% at constant scope and exchange rates and +30.9% on a
reported basis.
Cash flow came to €488 million, up +5.9% on a reported
basis and up +8.9% at constant scope and exchange rates, reflecting
the sharp increase in EBITDA generated over the year.
On the strength of these full-year 2021 results and given its
confidence in the Group’s ability to continue pursuing its
development, the Board of Directors decided at its meeting on 11
February 2022 to propose the distribution of a dividend of €1.65
per share, at the Group’s Annual General Meeting due to be held
on 13 April 2022.
1. Income statement analysed by geographical region
1.1. Income statement, France
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Consolidated sales
1,074
963
+11.5%
+10.7%
EBITDA
201
171
+17.9%
+17.8%
EBIT
118
92
+27.8%
+28.4%
The Group’s performance in France increased during the year,
although the pandemic was once more a limiting factor. Strong
growth in the first six months was followed by a moderate dip in
the second half as a result of an unfavourable basis of comparison
and the growing impact of a steep rise in energy costs. As a
result, EBITDA posted an increase over the year as a whole, with a
clear improvement in the EBITDA margin on consolidated sales to
18.7% from 17.7% in 2020.
- In the Cement business, operational sales rose +9.4% at
constant scope. Underpinning this performance was strong growth in
the first six months, which helped to offset the contraction
recorded in the second six months of the year as a result of an
unfavourable basis of comparison. Amid a still supportive sector
environment, prices moved higher and the EBITDA generated by the
business rose +12.2% over the year.
- The operational sales recorded by the Concrete & Aggregates
business rose +13.7% at constant scope. This performance reflects
higher deliveries of concrete and aggregates and sustained prices.
Overall, the EBITDA generated by the business rose +21.8% at
constant scope in 2021.
- In the Other Products & Services business, operational
sales advanced +16.0% at constant scope over the period. The EBITDA
recorded by the business climbed +48.5% over the year.
1.2 Income statement for Europe (excluding France)
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Consolidated sales
394
423
-7.1%
+3.8%
EBITDA
89
97
-8.7%
-5.2%
EBIT
55
55
0.0%
+1.4%
The Swiss market, barely affected by the pandemic in 2020,
recorded solid growth in 2021. Italy, which benefited from a highly
favourable basis of comparison at the start of the year given the
very challenging pandemic and macroeconomic situation in the first
six months of 2020, recorded a positive performance throughout the
year, supported by favourable trends in the construction market.
EBITDA for the region as a whole declined -5.2% at constant scope
and exchange rates given a non-recurring item recorded in
Switzerland during the first half of the year.
In Switzerland, the Group’s consolidated sales rose +3.0%
at constant scope and exchange rates (down -8.3% on a reported
basis as a result of the sale of Créabéton Matériaux effective 30
June 2021). Business there continued as normal with no significant
impact on sector conditions from the pandemic. The EBITDA margin on
consolidated sales stood at 23.2%.
- In the Cement business, operational sales grew +1.5% at
constant scope and exchange rates, supported by healthy performance
of the markets and waste recovery activities. As a result of a
non-recurring item recorded at the beginning of the year, the
EBITDA generated by the business declined -13.5% at constant scope
and exchange rates.
- In the Concrete & Aggregates business, operational sales
declined -5.8% at constant scope and exchange rates due to less
favourable weather conditions at the beginning of the year and
lower prices, especially in aggregates. Overall, the EBITDA
generated by the business fell -9.9% at constant scope and exchange
rates.
- In the Other Products and Services business, operational sales
rose +9.2% at constant scope and exchange rates (-23.0% on a
reported basis, taking into account the sale of Créabéton Matériaux
on 30 June 2021 and its deconsolidation in the second half). The
EBITDA generated by the business rose +56.3% at constant scope and
exchange rates.
In Italy, consolidated sales moved up +22.3% over the
period. They were boosted by a favourable basis of comparison in
the first half and a supportive environment throughout the year.
Overall, business trends and prices improved throughout the year.
EBITDA moved up +108.0% compared with 2020.
1.3 Income statement for the Americas
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Consolidated sales
672
636
+5.7%
+11.0%
EBITDA
140
141
-1.3%
+3.8%
EBIT
84
86
-3.3%
+2.0%
In the United States and in Brazil, business trends remained
favourable despite a challenging pandemic situation. After a sharp
acceleration in business trends in Brazil from the third quarter of
2020, the second half of 2021 saw a far less favourable basis of
comparison. The sector environment remained supportive, however.
Overall, the Americas region’s sales and EBITDA both recorded
growth.
In the United States, the macroeconomic and sector
environment remained favourable during the year. It should be noted
that first-half 2021 performance in California was impacted by an
unfavourable basis of comparison given the record volumes delivered
during the same period of 2020. In all, the Group’s consolidated
sales rose +4.9% at constant scope and exchange rates to €485
million over the full year. EBITDA totalled €96 million for the
year, up +1.4% at constant scope and exchange rates.
The construction of a new 5,000-tonne/day kiln at the Ragland
plant in Alabama continued in 2021. The new line, due to be
commissioned in the first half of 2022, will increase the plant’s
capacity and therefore help meet the strong market demand,
significantly reduce production costs and play a real role in
reaching the Group’s carbon emission targets.
- In the Cement business, operational sales rose +1.8% at
constant scope and exchange rates in 2021 thanks to upbeat trends
in the markets in which the Group operates, especially the
South-East, and a steep rise in prices over the period. Against
this backdrop, the EBITDA generated by the business grew +2.3% at
constant scope and exchange rates.
- In the Concrete business, operational sales rose +8.6% at
constant scope and exchange rates thanks to a supportive sector
environment, especially in the South-East region, and to higher
average selling prices. The EBITDA generated by the business edged
down -1.4% at constant scope and exchange rates during the year
given the inflation in costs, especially transport costs as a
result of the steep hike in fuel prices.
In Brazil, consolidated sales reached €187 million, up
+29.7% at constant scope and exchange rates. Even though the
pandemic situation was critical, and the basis of comparison was
unfavourable in the second half, business trends remained dynamic.
EBITDA recorded solid growth throughout the year, rising to reach
€43 million, up by +9.1% at constant scope and exchange rates.
- In the Cement business, operational sales totalled €151
million, up from €128 million in 2020, representing an increase of
+27.6% at constant scope and exchange rates. This performance
reflects the dynamic conditions in the markets in which the Group
operates and positive pricing trends. Overall, given the steep
increase in energy costs during the second half, EBITDA reached €37
million over the year compared with €38 million in 2020, a shift
which represents a rise of +5.5% at constant scope and exchange
rates.
- In the Concrete & Aggregates business, operational sales
reached €55 million, an increase of +42.6% at constant scope and
exchange rates. The improvement in market conditions was
accompanied by a rise in prices, both in concrete and in
aggregates. Overall, the EBITDA generated in the period moved up
+36.3% at constant scope and exchange rates.
1.4 Asia (India and Kazakhstan)
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Consolidated sales
428
348
+23.0%
+27.9%
EBITDA
122
103
+18.4%
+23.2%
EBIT
88
68
+28.7%
+34.0%
The Asia region, and particularly India, was again affected by
the pandemic, which was a drag on the macroeconomic and sector
environment.
In India, after a first half boosted by a highly
favourable basis of comparison, the second half brought a
macroeconomic environment which continued to be favourable, but was
affected by very strong cost inflation, especially in energy
prices, and more volatile pricing trends towards the end of the
year. As a result, the Group posted consolidated sales of €363
million over 2021 as a whole, up +31.0% at constant scope and
exchange rates.
Overall, EBITDA came to €100 million, representing an increase
of +25.3% at constant scope and exchange rates. The EBITDA margin
on consolidated sales reached 27.5%.
Consolidated sales in Kazakhstan came to €65 million, up
+13.6% at constant scope and exchange rates. This performance was
achieved through further expansion in the Group’s business in its
domestic market, which made up for the drop in exports. Given this
favourable geographical mix and the dynamic trends in the Kazakh
market, prices rose significantly.
EBITDA moved up +15.1% at constant scope and exchange rates to
reach €22 million during the year.
1.5 Mediterranean (Egypt and Turkey) income statement
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Consolidated sales
228
173
+31.8%
+59.2%
EBITDA
3
-11
n.s.
n.s.
EBIT
-15
-29
+49.8%
+51.2%
The Mediterranean region, hit by the adverse macroeconomic and
sector conditions, recorded growth in both Turkey and Egypt.
Overall, taking these factors into account, the Group recorded an
improvement in its EBITDA in 2021.
In Turkey, even though the steady depreciation and very
high volatility in the Turkish lira since August 2018 continued to
impact the macroeconomic and sector environment, the construction
market recovered further. Consolidated sales totalled €150 million,
up +58.0% at constant scope and exchange rates. EBITDA recorded a
significant increase over the year as a whole to €13 million, up
from €8 million in 2020.
- In the Cement business, the improvement in the sector
environment since the end of 2020 carried through into 2021 with
activity volumes and prices recording a clear increase. As a
result, operational sales totalled €109 million, up +58.5% at
constant scope and exchange rates. Overall, the EBITDA generated by
the business came to €10 million, representing an increase of
+63.1% at constant scope and exchange rates. The increase in prices
helped make up for the strong cost inflation, reflecting currency
depreciation and the substantial spike in energy costs.
- The operational sales recorded by the Concrete & Aggregates
business came to €70 million, up +62.7% at constant scope and
exchange rates. The business was boosted during the year by the
continuing improvement in market conditions and a steady and
significant price increase. EBITDA, which had been at breakeven
point in 2020, reached €2 million in 2021.
In Egypt, consolidated sales totalled €78 million, up
+62.3% at constant scope and exchange rates. Following the market
regulation agreement by the Egyptian government with all the
manufacturers that entered force in July 2021, the sector
environment became healthier during the second half, paving the way
for a steady increase in prices amid favourable market trends.
While these factors seem to be the first signs of a long-awaited
reversal in trend, the EBITDA recorded in Egypt was again €-10
million in negative territory over the full year (versus €-19
million in 2020), reflecting a clear improvement in the second
half.
1.6 Africa (Senegal, Mali, Mauritania) income
statement
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Consolidated sales
327
262
+25.1%
+24.9%
EBITDA
65
56
+15.2%
+15.0%
EBIT
30
25
+20.0%
+19.8%
In Africa, the Group continues to benefit from a favourable
sector environment, without any impact from regional geopolitical
crises, supported by performance improvements at the Rufisque plant
and by the commercial ramp-up in Mali.
- In the Cement business, operational sales in the region grew
+25.1% at constant scope and exchange rates, with a boost provided
by the dynamic trends in the West African market. Prices in Senegal
were stable over the year as a whole. They are increasing in Mali
and Mauritania. Given these factors, the EBITDA generated by the
business moved up +14.3% at constant scope and exchange rates in
2021.
- The Aggregates business in Senegal recorded consolidated sales
of €30 million, up +23.6% over the period as a result of the
gradual resumption of major government construction projects amid
positive pricing trends. As a result of these factors, EBITDA
increased by +19.9%.
2. Changes in the Group’s financial position at 31 December
2021
At 31 December 2021, the Group’s finances remained in good
shape, with a strong equity base and net debt under control. At the
same date, total equity totalled €2,606 million, compared with
€2,420 million at 31 December 2020 on a pro forma basis (the 2020
figures have been restated following the IFRS IC decision on
attributing benefits to periods of service under certain defined
benefit plans).
Net debt totalled €1,318 million at 31 December 2021 compared
with €1,202 million at 31 December 2020.
On this basis, the Group’s leverage ratio stood at 2.13x (versus
2.16x at 31 December 2020) and its gearing at 50.6% (versus 49.7%
at 31 December 2020 on a pro forma basis) at 31 December 2021.
The average interest rate of gross debt as of 31 December 2021
is stable at 3.1%, as is the average maturity of 5.0 years.
Given the level of Group’s net debt and its balance sheet
liquidity, the existence of covenants in the medium- and long-term
borrowing agreements do not pose a threat to the Group’s financial
position. At 31 December 2021, the Group was compliant with all
financial ratios required by covenants included in financing
agreements.
3. Capital expenditure and free cash flow
For the sake of greater clarity, capital expenditure and free
cash flow will now be presented with a distinction made between
“maintenance” capex and “strategic” capex linked to operational
business development decisions, which can thereby be adjusted to
fit cyclical trends.
“Maintenance” capex represents investments made every year to
maintain the technical performance of the Group’s existing
manufacturing base.
“Strategic” capex can be broken down into two categories:
- Capex to reduce the Group’s carbon footprint and committed to
pursue the Climate strategy outlined at the Capital Markets Day on
16 November 2021. These are investments intended to help meet the
targets of reducing greenhouse gas emissions;
- Growth capex linked to global projects, including expanding
capacity, such as the new Ragland kiln. Even so, it’s worth noting
that the proportion of these projects directly attributable to
reducing the carbon footprint is classified under the first
category of “capex to reduce the carbon footprint”.
(€ million)
2021
2020
2019
Maintenance capex
155
129
162
Strategic capex
232
190
76
o/w capex to reduce the carbon
footprint
75
51
23
o/w growth capex
156
139
52
Total outlays of capital
expenditure
387
319
238
Free cash flow (before strategic
capex)
295
418
234
Free cash flow (calculated based on
all capital expenditure)
63
228
159
Maintenance capex amounted to €155 million in 2021, compared
with €129 million in 2020.
On this basis, free cash flow (before strategic capex)
came to €295 million, compared with €418 million in 2020 and €234
million in 2019.
A large portion of the €156 million in growth capex committed in
2021 reflects the continuing construction of the new Ragland kiln
in the United States.
Lastly, the Group’s capex to reduce the carbon footprint
totalled €75 million in 2021, reflecting a steady rise since 2019
as it accelerated the pace of projects launched as part of the
Climate strategy. In this regard, the Group can restate that the
amount of capital expenditure to be committed to reducing its
carbon footprint is estimated at €800 million until 2030, or €80
million p.a. on average.
4. Financial investments
4.1 Increased stake in Ciplan
The Vicat Group has increased its stake in CIPLAN (Brazil) by an
additional 8%, increasing it to 74.13%. This additional stake
corresponds to the realisation of the liability guarantee of the
previous majority shareholder.
4.2 Increased vertical integration in France and
Switzerland
During 2021, the Group continued its vertical integration
strategy in the Concrete and Aggregates business, making small,
targeted acquisitions in France and Switzerland to strengthen its
local network.
4.3 Acquisition of Béton Direct in France
On 22 December 2021, Vicat became a majority shareholder in
Béton Direct, a website selling ready-mix concrete that exclusively
targets individual consumers and craftsmen. This acquisition
supports the Vicat’s strategy in France on two fronts: net zero
emissions and the digital transformation. The acquisition of this
advanced e-commerce technology represents an opportunity for the
Vicat group and Béton Direct to increase their position in direct
sales to consumers, a segment in which demand is rising. The cost
of the transaction has not been disclosed, but should not be
regarded as material given the size and financial strength of the
Vicat Group.
5. Recent events
5.1 Continuing the construction of the Ragland kiln in the
United States
The investment in a new 5,000-tonne/day kiln at the Ragland
plant in Alabama, which began in 2019, continued in 2021. In line
with the original plan, the new manufacturing facility employing
the latest cement production technologies is due to be commissioned
during the first half of 2022. It’s a “global” project with
multiple dimensions:
- the new kiln will provide the additional capacity needed to
meet the needs of the Group’s markets in the South-East region of
the United States, by increasing the plant’s capacity to 1.8
million tonnes p.a., from 1.2 million tonnes previously;
- the technology used, highly energy-efficient, will help reduce
production costs by 30% per tonne produced;
- lastly, the new kiln, which works without coal, will actively
help the Group to meet its carbon emission reduction targets.
5.2 Launch of construction of a new kiln in Senegal
The Group, via its subsidiary SOCOCIM Industries, has decided to
launch a €240 million investment plan with a view to building a new
kiln line in order to meet the following targets:
- a doubling of the Group’s capacity in the sub-region which will
reach 7 million tonnes per year. This increase will help to meet
demand in the Senegalese market, which is poised for strong growth
over the next few years, as well as supplying clinker to its
subsidiaries’ cement grinding plants;
- a very significant improvement in the manufacturing performance
of all its operations in Senegal thanks to the adoption of the
latest cement technologies. This greater efficiency, especially
energy efficiency, will enable a significant reduction in
production costs;
- lastly, the new kiln will actively help the Group to meet its
carbon emission reduction targets, as it has the ability to use a
significant mix alternative fuels.
The new production facility is scheduled for commissioning in
2024.
5.3 Industrial partnership with and investment in Haffner
Energy
The Vicat Group and the Haffner Energy group have entered into
an industrial agreement, which has been confirmed with the
acquisition of a stake in Haffner Energy in the context with the
latter’s IPO on 15 February 2022. Under this agreement, Vicat and
Haffner Energy are pooling their expertise to develop
decarbonisation solutions as part of the Vicat Group’s overall
strategy to reduce its carbon footprint. Haffner Energy designs and
supplies technologies and services for producing decarbonised
hydrogen from the thermolysis and steam reforming of sustainable
biomass thanks to its HYdrogen NO CArbon (“Hynoca®”) process. This
process can produce hydrogen at a highly competitive price while
sequestering 16 kg of CO2 per kg of hydrogen produced.
5.4 Development of the first zero-carbon binder
On 12 January, the Vicat Group announced it had developed a
binder that retains all the properties and uses of traditional
cement with the benefit of a carbon footprint corresponding to a
net emissions level of less than 0 kg of CO2 equivalent per
tonne.
Including verified Environmental Information Modules, this new
binder reaches the following emission levels net of CO2:
- binder 0133H, with a technical performance similar to that of a
42.5 R cement, has a value of -15 kg of CO2 per tonne;
- binder 2402H, with a technical performance similar to that of a
32.5 R cement, has a value of -310 kg of CO2 per tonne
Initially, this innovative new binder is intended for the French
market to meet the existing and future requirements of the new
RE2020 building regulations.
In the context of its deployment, several prerequisites before
it can go on sale in France will be addressed:
- Demonstrator projects will go ahead during spring 2022;
- It will then be made available to the first construction sites
from 2022, once the technical assessment for experimentation (ATEX)
has been obtained;
- An application for a technical opinion (ATEC) would then be
submitted and obtained from 2024;
- Lastly, when the ATEC is secured, distribution on an industrial
scale could begin in the French market during 2024.
Note that this low-carbon binder will be subject to a
standardisation procedure that may take several years in France
(around 5 years) and in Europe (around 10 years). However, this
stage is not a prerequisite for its launch on the market once the
ATEX and ATEC permits have been granted.
6. Outlook for 2022
In 2022, the Group anticipates another increase in its activity
levels and an improvement in its financial performance. As a
result, the EBITDA generated by the Group in 2022 is likely to
grow, but not by as much as in 2021.
The Group will be supported by a macroeconomic and sector
environment that is expected to remain broadly favourable, with an
anticipated price hike that should help offset the steep rise in
energy costs, currently estimated at around 30%.
Even so, strong seasonal effects are likely to be a factor
during the year, with:
- an unfavourable basis of comparison in the first half, mainly
as a result of the significant increase in energy costs expected
over the period;
- a clear improvement in the second half as energy costs
gradually stabilise and the full impact of the expected hike in
selling prices feeds through.
In 2022, the Group will keep up its investment drive, focusing
chiefly on:
- finalisation of construction work at the new Ragland kiln in
the United States, which is expected to start up in the first six
months of this year;
- start of construction work on the new kiln (Kiln 6) in
Senegal;
- the ramp-up in projects to meet carbon footprint reduction
targets;
- a drive to incrementally boost capacity at production
facilities in India and to invest in new terminals to expand its
market and lower logistics costs.
Accordingly, capital expenditure is expected to be higher than
in 2021 at around €400 million, including 130 million in
"maintenance" investments and 270 million in "strategic"
investments. The Group reserves the right to adjust its investment
plans, by reducing, if necessary, the proportion of its “growth”
capex, to match the shifting trends in its markets and its
cash-flow generation.
The Group is issuing the following elements of appreciation
about the performance expected in the various countries in which it
operates. It wishes to make clear that these trends are highly
dependent on the latest developments in the pandemic and the
latter’s impact on each of them:
- In France, activity levels are expected to remain on a growth
trajectory throughout the year, supported by a macroeconomic
environment that should be favourable for the construction sector.
As a result, the Group expects its volumes to rise slightly and its
prices to rise markedly to offset the impact of higher energy
costs, especially electricity;
- In Switzerland, the Cement and the Concrete & Aggregates
businesses should reap the benefit of upbeat conditions in the
construction sector;
- In the United States, both volumes and selling prices are
expected to continue increasing. The impact of the economic
stimulus plan being rolled by the US administration is likely to
make itself felt gradually from the second half of this year. In
this market, the Group is expected to reap the benefit of the
commissioning of the new Ragland kiln from the end of the first
half;
- In Brazil, business and profitability levels in 2021 have set a
high basis of comparison in a market in which trends are expected
to remain nonetheless favourable. As a result, the Group expects
stable business levels over the year as a whole, supported by the
continued rise in prices;
- In India, the macroeconomic and sector environment is expected
to remain favourable. The rise in energy costs is gradually
expected to stabilise with prices remaining highly volatile;
- In Kazakhstan, 2021 performance levels set a high basis of
comparison. While the market environment is expected to remain
supportive, this will remain contingent on developments in the
political and social situation;
- In Turkey, the situation is expected to keep improving
gradually in 2022, subject to trends in the Turkish lira and
interest rates. The price increase should help offset the rise in
energy costs;
- In Egypt, amid a gradually improving industry environment, a
clear improvement in the Group’s performances over the year as a
whole is anticipated provided that the measures implemented by the
government to restore a healthier market environment are left in
place;
- In West Africa, trends in Cement are expected to remain
dynamic, with support from a favourable sector environment in terms
of volumes and prices. The Aggregates business in Senegal is likely
to continue its recovery.
Presentation meeting and conference call
To accompany this publication, the Vicat Group is organising an
information meeting in French at 10:00 am on 16 February 2022 at
Pavillon Ledoyen, 8 avenue Dutuit, 75008 Paris.
In addition, Vicat is holding a conference call in English on 16
February 2022 at 3 pm Paris time (2 pm London time and 9 am New
York time).
To take part in the conference call live, dial in on one of the
following numbers:
France: +33 (0)1 70 37 71 66 UK: +44 (0)33
0551 0200 US: +1 212 999 6659
The conference call will also be livestreamed from the
www.vicat.fr website. A replay of the conference call will be
immediately available for streaming via the Vicat website or by
clicking here.
The presentation supporting the event will be available on
Vicat’s website or by clicking here from 10:00 am.
Next event:
Annual General Meeting, 13 April 2022
About Vicat
The Vicat Group has close to 9,500 employees working in three
core divisions, Cement, Concrete & Aggregates and Other
Products & Services, which generated consolidated sales of
€3.123 billion in 2021. The Group operates in twelve countries:
France, Switzerland, Italy, the United States, Turkey, Egypt,
Senegal, Mali, Mauritania, Kazakhstan, India and Brazil. Vicat, a
family-owned group, is the heir to an industrial tradition dating
back to 1817, when Louis Vicat invented artificial cement. Founded
in 1853, the Vicat Group now operates three core lines of business:
Cement, Ready-Mixed Concrete and Aggregates, as well as related
activities.
Vicat group – Financial data – Appendix
Definition of alternative performance measures
(APMs):
- Performance at constant scope and exchange rates is used
to determine the organic growth trend in P&L items between two
periods and to compare them by eliminating the impact of exchange
rate fluctuations and changes in the scope of consolidation. It is
calculated by applying exchange rates and the scope of
consolidation from the prior period to figures for the current
period.
- A geographical (or a business) segment’s operational
sales are the sales posted by the geographical (or business)
segment in question less intra-region (or intra-segment)
sales.
- Value-added: value of production less consumption of
materials used in the production process.
- Gross operating income: value-added, less staff costs,
taxes and duties (other than on income and deferred taxes) plus
operating subsidies.
- EBITDA (earnings before interest, tax, depreciation and
amortisation): sum of gross operating income and other income and
expenses on ongoing business.
- EBIT: (earnings before interest and tax): EBITDA less
net depreciation, amortisation, additions to provisions and
impairment losses on ongoing business.
- Cash flow: net income before net non-cash expenses (i.e.
predominantly depreciation, amortisation, additions to provisions
and impairment losses, deferred taxes, gains and losses on
disposals and fair value adjustments).
- Free cash flow: net operating cash flow after deducting
capital expenditure net of disposals.
- Net debt represents gross debt (consisting of the
outstanding amount of borrowings from investors and credit
institutions, residual financial liabilities under finance leases,
any other borrowings and financial liabilities excluding options to
sell and bank overdrafts), net of cash and cash equivalents,
including remeasured hedging derivatives and debt.
- Gearing is a ratio reflecting a company’s financial
structure calculated as net debt/consolidated equity.
- Leverage is a ratio reflecting a company’s
profitability, which is calculated as net debt/consolidated
EBITDA.
Income statement by business
The full 2021 consolidated financial statements, together with
the notes, are now available on the Company’s website at:
www.vicat.fr.
Cement
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Volume (thousands of tonnes)
28,141
25,043
+12.4%
Operational sales
1,914
1,673
+14.4%
+18.8%
Consolidated sales
1,633
1,421
+14.9%
+19.4%
EBITDA
456
415
+9.9%
+13.2%
EBIT
300
264
+13.5%
+16.9%
Concrete & Aggregates
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Concrete volumes (thousands of m3)
10,472
9,309
+12.5%
Aggregates volumes (thousands of
tonnes)
23,998
22,713
+5.7%
Operational sales
1,191
1,083
+10.0%
+13.1%
Consolidated sales
1,158
1,050
+10.3%
+13.2%
EBITDA
133
121
+10.4%
+12.3%
EBIT
49
34
+45.8%
+47.2%
Other Products & Services
(€ million)
2021
2020
Change
(reported)
Change (at constant
scope and exchange rates)
Operational sales
453
434
+4.3%
+14.8%
Consolidated sales
332
334
-0.6%
+11.9%
EBITDA
30
21
+39.0%
+51.9%
EBIT
11
0
n.s.
n.s.
Principal 2021 financial statements
Consolidated income
statement
2021
2020
Revenue
3,122,940
2,805,162
Goods and services purchased
(2,002,119)
(1,720,244)
Added value
1,120,821
1,084,918
Employees expenses
(483,699)
(489,921)
Taxes
(56,968)
(62,078)
Gross operating income
580,154
532,919
Other operating income (expenses)
38,964
24,396
EBITDA
619,118
557,315
Net charges to operating depreciation,
amortization and provisions
(259,196)
(259,467)
EBIT
359,922
297,848
Other non-operating income (expenses)
(28,291)
(6,080)
Net charges to non-operating depreciation,
amortization and provisions
4,793
(14,207)
Operating income (expense)
336,424
277,561
Cost of net financial debt
(28,442)
(36,870)
Other financial income
19,363
20,671
Other financial expenses
(20,919)
(18,630)
Financial income
(29,998)
(34,829)
Share of profit (loss) of associates
5,156
4,021
Profit (loss) before tax
311,582
246,753
Income tax
(89,398)
(74,609)
Consolidated net income
222,184
172,144
Portion attributable to minority
interests
18,005
16,149
Portion attributable to the
Group
204,179
155,995
EARNINGS PER SHARE (in euros)
Basic and diluted earnings per share
4.55
3.47
Balance sheet
ASSETS
(in thousands of euros)
December 31, 2021
December 31, 2020 (1)
Goodwill
1,157,232
1,118,874
Other intangible assets
173,653
170,812
Property, plant and equipment
2,169,041
1,987,852
Right of use related to leases
195,112
186,829
Investment properties
32,218
14,831
Investments in associated companies
92,774
77,873
Deferred tax assets
68,012
68,965
Receivables and other non-current
financial assets
219,241
239,176
Total non-current assets
4,107,283
3,865,212
Inventories and work-in-progress
429,243
354,937
Trade and other accounts
436,219
440,874
Current tax assets
6,947
3,328
Other receivables
206,475
152,496
Cash and cash equivalents
527,393
422,843
Total current assets
1,606,277
1,374,478
TOTAL ASSETS
5,713,560
5,239,690
SHAREHOLDERS’ EQUITY AND
LIABILITIES
(in thousands of euros)
December 31, 2021
December 31, 2020 (1)
Capital
179,600
179,600
Additional paid-in capital
11,207
11,207
Treasury shares
(52,194)
(53,587)
Consolidated reserves
2,800,755
2,689,713
Translation reserves
(579,950)
(640,805)
Shareholders’ equity, Group
share
2,359,418
2,186,128
Minority interests
246,681
234,310
Total shareholders’ equity
2,606,099
2,420,438
Provisions for pensions and other
post-employment benefits
108,529
125,860
Other provisions
104,974
116,764
Financial debts and put options
1,291,434
1,270,162
Lease liabilities
159,883
157,563
Deferred tax liabilities
219,800
214,196
Other non-current liabilities
23,927
37,999
Total non-current liabilities
1,908,547
1,922,544
Provisions
10,381
13,522
Financial liabilities and put options at
less than one year
371,119
165,375
Lease liabilities at less than one
year
55,502
47,382
Trade and other accounts payable
459,647
375,329
Current taxes payable
27,558
24,557
Other liabilities
274,707
270,543
Total current liabilities
1,198,914
896,708
Total liabilities
3,107,461
2,819,252
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
5,713,560
5,239,690
(1) 2020 figures have been restated based
on IFRS IC about the periods of service to which a company
attributes benefit for a particular type of defined benefit
plan.
Consolidated statement of cash flow
(in thousands of euros)
2021
2020
CASH FLOWS FROM
OPERATING ACTIVITIES
Consolidated net income
222,184
172,144
Share of profit (loss) of associates
(5,156)
(4,021)
Dividends received from associated
companies
1,208
4,860
Elimination of non-cash and non-operating
items:
- depreciation, amortization and
provisions
255,811
276,796
- deferred taxes
5,717
5,086
- net gain (loss) from disposal of
assets
(7,622)
(5,114)
- unrealized fair value gains (losses)
(3,625)
128
- others
19,070
10,693
Cash flows from operating
activities
487,587
460,572
Change in working capital
(48,674)
67,647
Net cash flows from operating
activities (1)
438,913
528,219
CASH FLOWS FROM
INVESTING ACTIVITIES
Outflows linked to acquisitions of
non-current assets:
- tangible and intangible assets
(386,570)
(319,370)
- financial investments
(40,157)
(23,613)
Inflows linked to disposals of non-current
assets:
- tangible and intangible assets
10,759
18,946
- financial investments
4,105
4,912
Impact of changes in consolidation
scope
(31,005)
(2,992)
Net cash flows from investing
activities
(442,868)
(322,117)
CASH FLOWS FROM
FINANCING ACTIVITIES
Dividends paid
(74,116)
(74,282)
Increases/decreases in capital
0
250
Proceeds from borrowings
331,443
210,729
Repayments of borrowings
(140,122)
(209,432)
Repayment of lease liabilities
(52,963)
(62,198)
Acquisitions of treasury shares
(22,887)
(7,555)
Disposals or allocations of treasury
shares
24,701
4,423
Net cash flows from financing
activities
66,056
(138,065)
Impact of changes in foreign exchange
rates
9,182
(37,552)
Change in cash position
71,283
30,485
Net cash and cash equivalents - opening
balance
359,159
328,674
Net cash and cash equivalents - closing
balance
430,442
359,159
(1) :
- Of which cash flows from income taxes:
(€84.3 million) in 2021 and (€34.5 million) in 2020.
- Of which cash flows from interest paid
and received: (€27 million) in 2021 including (€10.2 million) for
financial expenses on IFRS 16 leases and (€36 million) in 2020
including (€9.7 million) for financial expenses on IFRS 16
leases.
Statement of changes in consolidated shareholder’s
equity
(in thousands of euros)
Capital
Additional paid-in capital
Treasury shares
Consolidated reserves
Translation reserves
Shareholders' equity, Group
share
Minority interests
Total shareholders'
equity
At January 1, 2020 (1)
179,600
11,207
(52,416)
2,606,610
(405,786)
2,339,215
264,767
2,603,982
Net income
155,995
155,995
16,149
172,144
Other comprehensive income (1) (2)
(3,394)
(234,959)
(238,353)
(36,719)
(275,072)
Total comprehensive income
0
0
0
152,601
(234,959)
(82,358)
(20,570)
(102,928)
Dividends paid
(66,369)
(66,369)
(8,232)
(74,601)
Net change in treasury shares
(1,171)
(1,455)
(2,626)
(2,626)
Other changes
(1,674)
(60)
(1,734)
(1,655)
(3,389)
At December 31, 2020 (1)
179,600
11,207
(53,587)
2,689,713
(640,805)
2,186,128
234,310
2,420,438
At January 1, 2021
179,600
11,207
(53,587)
2,689,713
(640,805)
2,186,128
234,310
2,420,438
Net income
204,179
204,179
18,005
222,184
Other comprehensive income (2)
5,387
60,855
66,242
7,666
73,908
Total comprehensive income
0
0
0
209,566
60,855
270,421
25,671
296,092
Dividends paid
(66,314)
(66,314)
(7,890)
(74,204)
Net change in treasury shares
1,569
174
1,743
1,743
Changes in scope of consolidation and
additional acquisitions
(26,024)
(26,024)
(5,328)
(31,352)
Other changes
(6,535)
(6,535)
(82)
(6,617)
AT DECEMBER 31, 2021
179,600
11,207
(52,018)
2,800,580
(579,950)
2,359,419
246,681
2,606,099
(1) 2020 figures have been restated based
on IFRS IC about the periods of service to which a company
attributes benefit for a particular type of defined benefit plan
.
(2) Breakdown by nature of other
comprehensive income: Other comprehensive income includes mainly
cumulative translation adjustments from end 2003. To recap,
applying the option offered by IFRS 1, the conversion differences
accumulated before the transition date to IFRS were reclassified by
allocating them to retained earnings as at that date.
Comprehensive income
in thousands of euros)
2021
2020 (1)
Consolidated net income
222,184
172,144
Other comprehensive
income
Items not recycled to profit or
loss:
Remeasurement of the net defined benefit
liability
7,350
3,328
Other items not recycled to profit and
loss
(2,127)
0
Tax on non-recycled items
(2,574)
(547)
Items recycled to profit or
loss:
Changes in currency translation
adjustments
69,699
(281,574)
Cash flow hedge instruments
1,946
4,878
Tax on recycled items
(386)
(1,157)
Other comprehensive income (after
tax)
73,908
(275,072)
TOTAL COMPREHENSIVE INCOME
296,092
(102,928)
Portion attributable to minority
interests
25,671
(20,570)
Portion attributable to the
Group
270,421
(82,358)
(1) 2020 figures have been restated based
on IFRS IC about the periods of service to which a company
attributes benefit for a particular type of defined benefit
plan.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220215005881/en/
Investor relations: Stéphane Bisseuil: Tel.: +33 1 58 86
86 05 stephane.bisseuil@vicat.fr
Press: Marie-Raphaelle Robinne Tel.: +33 (0) 4 74 27 58
04 marie-raphaelle.robinne@vicat.fr
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