In This Article:
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Revenue: Consolidated sales reached EUR3.88 billion.
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Organic Growth: 2.3% in 2024.
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EBITDA: EUR783 million, with a margin of 20.2%.
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Free Cash Flow: EUR373 million, up 26% year-on-year.
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Net Income Group Share: EUR273 million, up nearly 12% on a like-for-like basis.
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Financial Leverage: Reduced to 1.58 times by the end of 2024.
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US EBITDA: EUR190 million, up 26% year-on-year.
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India Sales: EUR273 million, with EBITDA of EUR75 million, up 5.6% on 2023.
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Egypt EBITDA: EUR34.1 million, with a margin of 27.7%.
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Debt: Net debt at EUR1.2 billion, with cash reserves of EUR536 million.
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Dividend: Proposed distribution of EUR2 per share.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Vicat SA (SDCVF) achieved its best-ever performance in 2024 with an EBITDA of EUR783 million, driven by strong growth in the US and resilience in Europe.
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The company reported a significant rise in free cash flow to EUR373 million and continued to reduce its debt, with a financial leverage of 1.58 times at the end of 2024.
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Vicat SA (SDCVF) is actively implementing its decarbonization roadmap, achieving a reduction in emissions intensity and increasing the use of alternative fuels.
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The company is well-positioned to benefit from the potential recovery in the French residential market due to its regional presence and available production capacity.
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Vicat SA (SDCVF) is involved in major projects like the Lyon-Turin tunnel, which will support its business for years, and the Lebec Net Zero Project in California, marking a significant step in carbon capture and storage.
Negative Points
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The French residential market is experiencing a historic slowdown, impacting Vicat SA (SDCVF)'s operations in the region.
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Despite strong performance in some areas, the company faces challenges in India due to a fiercely competitive environment, resulting in a decline in sales.
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The EBITDA margin guidance for 2025-2027 appears conservative, suggesting potential plateauing in margin progression.
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Vicat SA (SDCVF) is exposed to import pressures in the US, particularly in California, which could impact pricing and market dynamics.
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The company acknowledges uncertainties in the implementation of the Carbon Border Adjustment Mechanism (CBAM) in Europe, which could affect its competitive position.
Q & A Highlights
Q: Your guidance for 2025 to 2027 suggests maintaining EBITDA margins at 20%. Given recent margin improvements, is this guidance conservative? Are you expecting less price-cost benefits or volume recovery? A: Guy Sidos, CEO: We aim for an EBITDA margin over 20% through a mix of volume recovery and cost efficiency from modern equipment. New equipment reduces energy consumption and fixed costs, enhancing profitability even if prices remain stable. The guidance considers potential market uncertainties, as we are still early in 2025.