Vicat - Q1 2025 Sales

Core Insights - The company reported consolidated sales of €886 million in Q1 2025, reflecting a decrease of 2.7% on a reported basis and a stable performance of -0.2% at constant scope and exchange rates, primarily affected by negative currency effects [3][4][5] - The company confirmed its 2025 targets for sales growth and profitability, emphasizing resilience in its operations across various regions despite global uncertainties [3][15] Sales Performance - Sales in France increased by 3.9% to €281 million, while Europe (excluding France) saw a rise of 2.8% to €95 million, driven by strong performance in Switzerland and Italy [1][31] - The Americas reported stable sales of €221 million, with a slight decline of 0.5%, while Asia experienced a significant drop of 20.5% to €95 million, largely due to a competitive environment in India [1][38] - The Mediterranean region's sales were down 1.6% to €103 million, but showed a strong performance in Egypt, while Africa's sales fell by 9.9% to €91 million due to increased competition [1][11][45] Business Segments - The Cement business showed resilience with operational sales of €554 million, down 5.4% reported but stable at +0.5% at constant scope and exchange rates, despite a volume decline of 6.8% [48] - The Concrete and Aggregates segment faced challenges with operational sales falling by 4.3% to €333 million, attributed to an 8.2% drop in concrete volumes [48][49] - Other Products & Services saw operational sales rise by 6.1% to €117 million, reflecting the integration of construction chemicals activities [49] Geographical Analysis - In France, the integration of Cermix with VPI contributed positively, while the cement market showed signs of stabilization [7][28] - Switzerland's cement business recorded its second consecutive quarter of volume growth, supported by major infrastructure projects [32] - In the Americas, the South-East region experienced growth, while California faced declining residential volumes [34] - The Asia region was mixed, with India facing significant challenges, while Kazakhstan showed growth due to price increases [39][40] - Egypt's cement business thrived with a 73.1% increase in operational sales, driven by strong export volumes [44] Strategic Initiatives - The company is focusing on the integration of Cermix with VPI to strengthen its position in the construction chemicals market in France [2][4] - The VAIA decarbonization project aims to capture nearly 100% of emissions from the Montalieu-Vercieu cement plant, with an estimated investment of €700 million [13][14] - The company aims to achieve a gearing ratio of less than 1.0x by the end of 2027 while maintaining an EBITDA margin of at least 20% over the 2025–2027 period [16][22]