Buzzi (BZU) H1 2024 earnings summary

Executive summary

• Cement and ready-mix concrete volumes declined by 8.0% and 8.8% year-over-year, mainly due to weak demand in Central Europe and adverse weather in Italy and the US.

• Net sales for H1 2024 were €2,053.6 million, down 4.5% year-over-year, with price increases and cost reductions partially offsetting volume declines.

• Recurring EBITDA was €552.7 million, down 3.9% year-over-year, but EBITDA margin remained strong at 26.7%.

• Net profit was €421.9 million, down 2.2% compared to H1 2023.

• Net cash position improved by €100 million since FY 2023, reaching €898.4 million at the end of June 2024.

Financial highlights

• Cement sales: 12.0 million tons (-8.0% YoY); ready-mix concrete: 4.7 million m³ (-8.8% YoY).

• Net sales: €2,053.6 million (-4.5% YoY); like-for-like, down 3.1%; unfavorable FX impact of €27 million.

• Recurring EBITDA: €548.3 million (-4.1% YoY); EBITDA margin stable at 26.7%.

• Cash generated from operations increased to €423.5 million, 20.6% of sales; capex rose to €226 million.

• Dividend and buyback cash outflows totaled €81.1 million in H1 2024.

Outlook and guidance

• Full-year 2024 recurring EBITDA is expected to be very close to the record 2023 level.

• Construction activity is expected to improve in H2 2024, except for subdued investments in Central Europe.

• Civil engineering works remain the main industry driver, especially in Italy and the US.

• CapEx is projected to rise further, potentially reaching €500 million annually if major CO2 capture projects proceed.

• Acquisition of the remaining 50% of the Brazilian JV is expected to close in October 2024.