Vicat (VCT) Q3 2024 TU earnings summary

Executive summary

• Organic sales grew 3.3% year-over-year for the first nine months of 2024, driven by strong US performance and resilience in emerging markets, despite weak European residential demand and currency headwinds.

• U.S. sales outperformed the industry, supported by the Ragland plant ramp-up and hurricane recovery.

• Strategic combination of VPI and Cermix (Koramic) in France creates a leader in construction chemicals with €200 million annual sales.

• EBITDA growth guidance for 2024 remains at 3%-8%, with leverage targeted below 1.7x by year-end and below 1.3x by end-2025.

• Circular economy initiatives increased recycled material use by 25% since 2021.

Financial highlights

• Nine-month 2024 consolidated sales: €2,916 million, down 1.5% reported, up 3.3% like-for-like year-over-year.

• Q3 2024 sales: €979 million, down 6.6% reported, up 0.7% like-for-like; negative currency effects of €73 million in Q3.

• Price increases largely offset lower volumes year-to-date.

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

• 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% to +8%, with leverage ratio targeted below 1.7x by year-end 2024 and below 1.3x by 2025.

• Net capital expenditure for 2024 expected around €325 million, with CapEx to decrease significantly in 2025.

• Margin restoration to pre-crisis levels, deleveraging, and climate roadmap execution are key priorities.

• Senegal kiln commissioning shifted to H1 2025, with EBITDA contribution in H2 2025.

• Limited sales growth expected at constant exchange rates, supported by US and emerging markets.