Vicat - H1 2025 Results
Stable sales, up +0.2% like-for-like1
Unfavorable currency effects over the period
EBITDA down -2.0% and consolidated net income up +6.3% like-for-like
Solid cash flow generation and a €190 million reduction in net debt over 1 year
2025 EBITDA guidance adjusted to reflect currency effects: growth of +2% to +5% like-for-like
(€ million)
First-half2025
First-half 2024
Changereported
Change lfl*
Consolidated sales
1,885
1,937
-2.7%
+0.2%
EBITDA
331
353
-6.3%
-2.0%
Margin (%)
17.5%
18.2%
-0.7 pts
Recurring EBIT
169
188
-10.0%
-4.4%
Margin (%)
9.0%
9.7%
-0.7 pts
Consolidated net income
116
115
+1.1%
+6.3%
Margin (%)
6.1%
5.9%
+0.2 pts
Net income, Group share
102
104
-1.7%
+3.1%
Margin (%)
5.4%
5.3%
+0.1 pts
Free cash flow
44
-23
ns
*like-for-like, i.e. at constant scope and exchange rates
Guy Sidos, the Group's Chairman and CEO, commented:
"In a more uncertain geopolitical environment that reduces economic visibility, the Group's first-half results testify to the resilience of our business model that balances exposure to developed countries and emerging markets. This solidity is reflected by the growth in consolidated net income, improvement in free cash flow and a significant reduction in net debt.The Group continues to implement its market plan, with the start-up of Kiln 6 in Senegal, a major driver of the Group's organic growth, development in the construction chemicals business with the merger between VPI and Cermix, and the acquisition of Realmix, which strengthens the Group's vertical integration in Brazil. On this basis, we are reiterating the Group's 2025 and 2027 debt reduction targets and are adjusting our 2025 operating profitability guidance to account for the major currency effects."
The consolidated financial statements for the first half of 2025 were approved by the Board of Directors on July 25, 2025. The Statutory Auditors have completed their audit of the consolidated financial statements. The Statutory Auditors report on the first-half financial information is in the process of being issued.
Activity: resilient first-half performance characterized by major negative currency effects and a slowdown in activity in the United States
The Group's consolidated sales totaled €1,885 million in the first half of 2025, edging up +0.2% at constant scope and exchange rates and moving down -2.7% on a reported basis, impacted by negative exchange rate trends:
The currency effects over the period came to €-93 million (or -4.8%), chiefly owing to depreciation in the Turkish lira, Egyptian pound and Brazilian real against the euro;
The scope effect totaled €+37 million (or +1.9%), mainly reflecting the integration of Cermix with Vicat's construction chemicals business (VPI);
The Group's businesses reported a slowdown in the pace of the downturn in cement activity in France, a recovery in activity levels in Switzerland and a business slowdown in the United States. Overall, emerging markets recorded a stronger performance, especially Brazil and the Mediterranean region, with further encouraging momentum in Egypt. Trends in Asia and Africa remained mixed.
The Cement business displayed resilience during the first half, with consolidated sales rising by +1.7% at constant scope and exchange rates, even though volumes fell -2.5% in the first half of the year, chiefly in developed countries (except for Switzerland) and in Asia. Cement prices remained resilient across most of the Group's geographies, except for India in the first quarter and Senegal;
The Concrete & Aggregates business recorded a -3.9% decline in concrete volumes and a +5.8% increase in aggregates volumes in the first half, in particular as a result of the rise in Senegal and Turkey. Pricing trends vary considerably from one region to another, with significant pricing increases in concrete and aggregates in Brazil. Consolidated sales in this business fell by -1.4% at constant scope and exchange rates;
Other Products & Services posted an increase of +17.5% in consolidated sales in the first six months of 2025 on a reported basis owing to the integration of Cermix's construction chemicals activities. Excluding scope effects, the business contracted by -2.4%, due to an unfavorable base of comparison in Switzerland (Vigier Rail).
Results: EBITDA inflection but higher consolidated net income
EBITDA totaled €331 million in the first six months of 2025, compared to €353 million in 2024, an all-time record for the Group. This -6.3% decline (down -2.0% at constant scope and exchange rates) chiefly reflects the slight downturn in results in the United States and in France, and a more unfavorable base of comparison during the first six months in India. The trend in reported EBITDA also reflects an unfavorable currency effect of €-17 million and a scope effect of €+2 million. The EBITDA margin was 17.5%, down just -70 basis points over the period.
The EBITDA reduction at constant scope and exchange rates was chiefly attributable to a negative volume effect (€-19 million) in the first six months and a price/cost differential that remained favorable at Group level (€+11 million).
Energy costs amounted to €208 million in the first six months of 2025. At constant exchange rates and volumes, energy costs were -1.0% lower. They remained above the 2021 level (€177 million), however;Industrial performance improved in the Cement business over the period, notably with an increase in the use of alternative fuels to replace fossil fuels, which rose by +2.4 points compared to H1 2024 to reach 38.9% at Group level.
Recurring EBIT declined -4.4% at constant scope and exchange rates, resulting in an EBIT margin of 9.0%, down -70 basis points in line with the trend in EBITDA.
Net financial expense totaled €-28 million in the first half of 2025, an improvement compared to 2024 as a result of an €-11 million reduction in the net cost of debt owing to the decline in the average total volume of debt and the lower net interest rates after hedging.
Tax expense rose €9 million compared to the first six months of 2024. The effective tax rate was 26.4%, above the first-half 2024 level of 21.7%. This increase was attributable to the use of tax losses in Egypt in 2024 that had not been recognized at the beginning of the period.
Consolidated net income totaled €116 million in the first half of 2025, up +6.3% at constant scope and exchange rates and up +1.1% on a reported basis. The net margin was 6.1%, up +20 basis points.
Net income, Group share rose +3.1% at constant scope and exchange rates and declined -1.7% on a reported basis to €102 million. This fall was attributable to the impact of higher minority interest deriving from the improvement in the results of subsidiaries in Brazil, Egypt and Turkey.
Analysis by geography
A more detailed analysis of performance by geography is provided in the appendix to this press release.
Consolidated sales in the first half of 2025:
(€ million)
First-half2025
First-half 2024
Changereported
Change lfl*
France
608
594
+2.4%
-3.8%
Europe (excluding France)
215
197
+9.2%
+7.1%
Americas
465
494
-5.8%
-1.5%
Asia
204
242
-15.9%
-10.6%
Mediterranean
212
214
-0.9%
+28.5%
Africa
181
196
-8.0%
-7.8%
TOTAL
1,885
1,937
-2.7%
+0.2%
*like-for-like, i.e. at constant scope and exchange rates
EBITDA in the first half of 2025:
(€ million)
First-half2025
First-half 2024
Changereported
Change lfl*
France
85
99
-13.6%
-15.7%
Europe (excluding France)
53
46
+15.4%
+13.1%
Americas
91
106
-13.9%
-9.6%
Asia
37
46
-19.6%
-15.8%
Mediterranean
44
25
+76.8%
+124.9%
Africa
21
32
-35.8%
-35.5%
TOTAL
331
353
-6.3%
-2.0%
*like-for-like, i.e. at constant scope and exchange rates
Results in France were impacted by a further volume decline as a result of the weakness in the residential market. Cement prices remained stable over the period. In addition, Cermix's integration had a dilutive impact on the margin in France.
In Europe (excluding France), results rose over the first half, notably thanks to the good performance of the Cement and the Concrete & Aggregates businesses in Switzerland, which were boosted by the continuing recovery in the market and the appreciation of the Swiss franc against the euro. The commercial success achieved by Vigier's low-carbon cement, especially the Progresso product range, made a positive contribution to growth of the business in Switzerland.
The Americas, again the largest regional contributor to the Group's EBITDA, were impacted by a business slowdown in the United States as the residential market remained depressed and political uncertainties reduced visibility. Business trends in Alabama remained positive despite the impact of unfavorable weather conditions over the period. The plant's industrial performance continued to improve, with cash costs declining. The good operating performance in Brazil during the first half was offset in the consolidated financial statements by the unfavorable impact of exchange rate trends (depreciation in the Brazilian real against the euro).
The Group's results declined in Asia as a result of a fiercely competitive environment in India, which dragged down prices in the first quarter, and higher costs in Kazakhstan. Despite an unfavorable base of comparison, the Cement business in India showed signs of improvement, with prices recovering in the second quarter, the volume downturn slowing and costs kept under control. The base of comparison is expected to be more favorable in the second half.
The Group's results in the Mediterranean region posted a strong increase owing to the commercial momentum in Egypt and improved business trends in Turkey in the second quarter. The zone was again affected by the sharp depreciation of the Turkish and Egyptian currencies against the euro during the period.
The Group's results in Africa were impacted by the fall in cement prices and larger clinker purchases in Senegal, as well as by political disruption in Mali. The Group's priority remains ramping up Kiln 6, which produced its first clinker on June 7, 2025. It is expected to make its first contribution to EBITDA in the second half of 2025.
Investment and cash flow: strong growth in free cash flow
In the first half of 2025, total net capital expenditure committed totaled €124 million, down from €186 million in the same period of 2024. This allocation included strategic growth investments, including the final disbursement related to Kiln 6 in Senegal.Free cash flow came to €44 million in the first half, up €67 million from €-23 million in the first half of 2024. This trend reflects a significant decline in net investments committed and an improvement in the working capital requirement over the period.
Balance sheet: further debt reduction, in line with the 2025 target of a 1.3x leverage ratio
(€ million)
First-half2025
First-half 2024
June 30, 2023
Gross financial debt
