Yahoo Finance

• The Cement business displayed resilience during the first quarter, with consolidated sales rising by +0.5% at constant scope and exchange rates, even though volumes fell –6.8%, chiefly in India. Cement prices remained solid in most of the Group’s regions, particularly in developed countries;

• The Concrete and Aggregates businesses were affected by an –8.2% fall in concrete volumes in the first quarter, with mixed pricing trends, but nonetheless higher prices over across the Group as a whole. Consolidated sales fell by –1.2% at constant scope and exchange rates;

• Other Products & Services sales were stable at constant scope and exchange rates as a result of a healthy performance in France (contribution from the TELT tunnel to SATM Grand Travaux) and in India.
  
  

Analysis by geographical regions

A more detailed analysis of performance by geography is provided in the appendix to this press release.

Business in France rose as a result of the integration of Cermix’s construction chemicals business with VPI, while the pace of the decline in cement continued to slow down sequentially. The Concrete & Aggregates businesses showed signs of stabilization owing to a more favorable base of comparison (activity levels declined earlier than they did in cement).

In Europe (excluding France), sales moved higher as a result of good momentum in Switzerland and in Italy in cement. The cement business in Switzerland recorded its second consecutive quarter of volume growth.

In the Americas, activity levels were stable over the period, with volumes down in California as a result of weak residential demand, offset partially by growth in the South-East and an upswing in activity in Brazil. Dollar appreciation in the first quarter partially made up for the decline in the Brazilian real during the period.

Business in the Asia zone was mixed, with a marked decrease in India, but Kazakhstan recorded growth supported by a hike in prices. In India, the fiercer competitive environment in the southern states continued to adversely affect prices and volumes, while positive dynamics again prevailed in Maharashtra (Mumbai). The Group’s cost structure in India remains extremely competitive.

Activity in the Mediterranean zone grew as a result of the strong performance in Egypt, but was adversely affected by the sharp depreciation of the Turkish and Egyptian currencies against the euro over the period. Against a backdrop of persistent hyperinflation, the cement business in Turkey was impacted by unfavorable weather conditions and by political instability. Prices again moved higher to offset the effects of inflation. In Egypt, activity levels were boosted by strong growth in export volumes, with prices rising in both domestic and export markets.

In Africa, the Group’s business contracted in the first quarter in the three countries in which it is present. The competitive environment became more challenging in Senegal in cement as a new competitor entered the market. The Group’s priority in Senegal remains starting up kiln 6, with its ramp-up phase scheduled to begin in the second quarter of 2025. It is expected to contribute to EBITDA for the first time in the second half of 2025.

Highlights

Project VAIA: public consultation for the Rhône decarbonization project launched on March 17, 2025:
A public consultation concerning the Rhône decarbonization project is running from March 24 to June 20, 2025. It is being led by Vicat, with the VAIA project, and by SPSE, Elengy and RTE. The Rhône decarbonization project calls for the creation of a CO₂ capture, transportation, liquefaction and loading chain operated by vessels running from the Montalieu-Vercieu cement plant to the Elengy Fos Tonkin facility in the Bouches-du-Rhône department.
VAIA is a decarbonization project that aims to capture close to 100% of the Montalieu-Vercieu cement plant’s final emissions through an investment estimated at €700 million. It includes the use of activated clays via an innovative process to avoid 200,000 tons of CO₂ per year and a CCS installation, with a capture capacity of 1.2 million tons of CO₂ p.a. It is a major project that will help support the decarbonization of the Rhône Valley corridor.

Outlook for 2025

The Group confirms the following targets for 2025:

Sales growth on a like-for-like basis

Low single-digit EBITDA growth

Financial leverage (net debt/EBITDA) of 1.3x by the end of 2025

These objectives take into account:

• An acceleration in performance in the second half of the year, thanks in particular to the contribution of kiln 6 in Senegal;

• Stabilizing energy costs;

• Net capital expenditure of around €280 million and tight control of working capital requirements.

• A market environment not reflecting the macroeconomic effects of a prolonged trade conflict

The Vicat Group aims to achieve a gearing ratio (net debt/EBITDA) of less than 1.0x at year-end 2027, while maintaining an EBITDA margin at least equal to 20% over the 2025–2027 period.

Geographical outlook for 2025:

In Europe, business is likely to continue to be impacted by the weakness in residential construction, with the downturn slowing. Major infrastructure projects in France and Switzerland should make a positive contribution. The gradual integration of the cost of decarbonization should support the favorable price trends in Europe.

In the United States, sales in the South-East should continue to grow, thanks to full use of the network of rail terminals around the plant, while business in California should evolve in line with market trends. Prices are expected to remain resilient in the United States.

Activity in emerging countries should be contrasted, with still significant currency effects, notably in the Mediterranean zone. The good momentum should continue in Egypt, thanks to exports. Senegal should benefit from the contribution of the new kiln in the second half of the year. Brazil is expected to make progress in a competitive environment that remains tense. Business in Turkey should continue to be affected by hyperinflation and a weak currency. Business in India is expected to remain more subdued in the south, where markets are more competitive, and to benefit from the increase in the logistics capacity to serve Mumbai.

Presentation meeting and conference call

In connection with this publication, the Vicat Group will hold an information conference call in English on April 30, 2025, at 3pm CET Paris (2pm London and 9am New York).

To take part live, dial one of the following numbers:
France: +33 (0)1 70 37 71 66
UK: +44 (0) 33 0551 0200
US: +1 786 697 3501

The conference call will also be webcast via the Vicat website or via the following link. A recording of the conference call will be immediately available on the Vicat website or via the following link.

The presentation that will support this event will be available from 12 noon CET on the Vicat website.

Upcoming

First-half 2025 results: July 28, 2025, after the close of trading

Contacts

About Vicat

For 170 years, Vicat has been a leading player in the mineral and biosourced building materials industry. Vicat is a group listed on the Euronext Paris market, part of the SBF 120 Index, and is under the majority control of the founding Merceron-Vicat family. With the ambition of achieving carbon neutrality in its value chain by 2050, the Vicat Group now operates three core lines of business: Cement, Ready-Mixed Concrete and Aggregates, as well as related activities. The Vicat Group is present in 12 countries spanning both developed and emerging markets. It has close to 10,000 employees and generated consolidated sales of €3,884 million in 2024. With its strong regional positions, Vicat is developing a circular economy model beneficial for all and consistently innovating to reduce the construction industry’s environmental impact.

Disclaimer

• In this press release, and unless indicated otherwise, all changes are stated on a year-on-year basis (2025/2024), and at constant scope and exchange rates.

• The alternative performance measures (APMs), such as “at constant scope and exchange rates”, “operational sales”, “EBITDA”, “recurring EBIT”, “net debt” 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 Group’s Universal Registration Document on its website (www.vicat.fr). These statements do not reflect the future performance of the Vicat group, which may differ significantly. The Group does not undertake to provide updates of these statements.
  
  

More comprehensive information about Vicat is available on its website www.vicat.fr.

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.

• EBITDA (earnings before interest, tax, depreciation and amortization): sales less purchases used, staff costs and taxes adjusted for other income and expenses on ongoing business.

• Recurring EBIT (earnings before interest and tax): EBITDA less net depreciation, amortization, additions to provisions and impairment losses on ongoing business.

• Free cash flow: net operating cash flow after deducting capital expenditure net of disposals and financial investments and before the dividend payment.

• 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.

• Leverage is a ratio based on a company’s profitability, calculated as net debt/consolidated EBITDA.
  
  

Vicat Group – Appendices

First-quarter 2025 sales by geographical region

France

*like-for-like, i.e. at constant scope and exchange rates

The Cement business in France was again impacted by the weakness of the residential market, but the decline slowed sequentially over the quarter. The infrastructure project for the Lyon-Turin rail link (TELT) contributed in a limited fashion, only partially offsetting the downturn in residential volumes. Cement prices remained stable. Cement operational sales declined by –4.6%.

Concrete & Aggregates operational sales fell –1.0% against a favorable base of comparison (the Concrete & Aggregates business began to contract in the first quarter of 2023). Trends in concrete were encouraging, while aggregates volumes rose very slightly with the boost provided by the TELT project.

Operational sales recorded by Other Products & Services rose by +13% on a reported basis. This increase reflected the integration of the construction chemicals activities related to the VPI/Cermix deal, and a +0.5% rise at constant scope thanks to the contribution of TELT to SATM Grand Travaux’s business.

Europe (Switzerland and Italy)

*like-for-like, i.e. at constant scope and exchange rates

Cement activity in Switzerland rose in the first quarter, with volume growth for the second consecutive quarter. The introduction of a new low-carbon cement also helped support growth. Major infrastructure projects (construction of the Gléresse Tunnel and renovation of the Weissenstein Tunnel) should support activity in 2025. Cement operational sales grew +6.5% at constant scope and exchange rates.

Operational sales for the Concrete & Aggregates business rose by +10.9% at constant scope and exchange rates.

Operational sales recorded by Other Products & Services declined as a negative base of comparison adversely affected Vigier Rail.

In Italy, operational sales rose +3.7% at constant scope, against a backdrop of a volume rebound and stable prices.

Americas (United States and Brazil)

*like-for-like, i.e. at constant scope and exchange rates

In the United States, the Cement business experienced mixed trends in both regions. Residential volumes in California continued to decline, a trend partially offset by growth in the South-East driven by the ramp-up in rail terminals. The pricing environment remained resilient during the quarter. Cement operational sales fell –3.2% at constant scope and exchange rates and by –0.2% on a reported basis owing to the appreciation of the dollar against the euro over the quarter on a quarter-to-quarter average basis.

Concrete operational sales fell –2.4% at constant scope and exchange rates owing to the slowdown in California and rose +0.6% on a reported basis as a result of appreciation in the US dollar against the euro.

In Brazil, the Cement business reaped the benefit of a volume rebound, while prices remained stable over the period. The Centre-West region, where Ciplan operates, continues to be affected by an unfavorable competitive environment. Cement operational sales rose by +4.0% at constant scope and exchange rates, but declined by –9.2% on a reported basis owing to the further depreciation in the Brazilian real against the euro.

Concrete & Aggregates operational sales rose +14.3% in Brazil at constant scope and exchange rates. They remained stable on a reported basis owing to depreciation in the currency. This growth was attributable to healthy volume momentum in concrete and aggregates and higher prices.

Asia (India and Kazakhstan)

*like-for-like, i.e. at constant scope and exchange rates

Cement business declined in India, with volumes down significantly owing to the increasingly fierce competitive environment in the southern states where prices remained under pressure and where the base of comparison was unfavorable (first-quarter 2024 trading activity was very strong ahead of the general elections). The encouraging volume growth in Maharashtra as a result of the addition of rail capacity in late 2024 to serve Mumbai only partially offset the downturn in the south of the country. Operational sales fell by –22.3% at constant scope and exchange rates.

In Kazakhstan, prices continued to move higher after the hike in the second half of 2024 to pass on the increased cost of fuels. Volumes also rose slightly in the quarter owing mainly to the strong momentum of the Almaty region and exports to Kyrgyzstan. Operational sales rose +11.9% at constant scope and exchange rates and +1.9% on a reported basis owing to the depreciation of the tenge against the euro over the period.

Mediterranean (Turkey and Egypt)

*like-for-like, i.e. at constant scope and exchange rates

Amid a persistent hyperinflationary environment, the Cement business in Turkey was impacted by a volume decline caused by unfavorable weather conditions in February and the political situation. As a result, selling prices were hiked again to offset the effects of inflation on production costs. Cement operational sales grew by +8.8% at constant scope and exchange rates (–7.3% on a reported basis owing to the depreciation of the Turkish lira against the euro over the period).

Concrete & Aggregates operational sales in Turkey fell –12.5% at constant scope and exchange rates (down –25.4% on a reported basis owing to the strong depreciation in the Turkish lira against the euro over the period).

The Cement business in Egypt was boosted by further dynamic trends in the export market with a strong rise in volumes and higher prices. Prices in the domestic market also moved positively over the period. Operational sales rose by +73.1% at constant scope and exchange rates and by +26.1% on a reported basis.

Africa (Senegal, Mali, Mauritania)

*like-for-like, i.e. at constant scope and exchange rates

The Cement business in Senegal was impacted by a downturn in domestic prices as a new competitor entered the market. Volumes moved lower over the period, especially exports. Cement operational sales in Senegal fell –7.9%. The Group’s priority remains starting up kiln 6, with its ramp-up phase scheduled to begin in the second quarter of 2025. It is expected to contribute to EBITDA in the second half of 2025.

Aggregates operational sales in Senegal moved –26.8% lower as a result of a sharp slowdown in volumes given the continuing delays to public-sector infrastructure projects.

Cement operational sales in Mali and Mauritania decreased by –19.7% and –9.5% at constant scope and exchange rates respectively in the first quarter, as volumes and prices moved lower.

First-quarter sales by business

Cement

*like-for-like, i.e. at constant scope and exchange rates

Concrete & Aggregates

*like-for-like, i.e. at constant scope and exchange rates

Other Products & Services

*like-for-like, i.e. at constant scope and exchange rates

Attachment

• 20250429_PR_Q1 2025 Sales_Vicat