Vicat penalized by the decline in its net profit in the first half of 2017




On the first six months of the year, the cement company Vicat comes to generate a net profit down 17 %, or the equivalent of 40 million euros. Its objective is to build on a “sustained growth” in the second half of 2017.
After the first few months of the year disrupted by the weather and by difficult circumstances in Egypt, the cement company Vicat records, on August 3, 2017, a decline in its net profit in the first half of 2017. “The net result, group share decreased by 17% over a six month period, to 40 million euros, said the group in a press release. The six-month sales increased slightly by 0.8% to 1.25 billion euros.”The scope of consolidation and constant exchange rates, the growth is 0.9%.

 

The cement is expected to benefit from sustained growth in the second half of 2017

 

“In the course of a year that will be marked by a very strong seasonality, the group is expecting now to benefit from sustained growth of its activities in the second half of 2017”, said the CEO of Vicat Guy Sidos, quoted in the press release. The group will reaffirm aim to “improve its performance” during the year 2017 and to”maintain its goal of strong generation of cash flows, and reducing its level of debt”.

 

The half was marked by “very unfavourable meteorological conditions in Europe, the United States and in Turkey, especially in the beginning of the year,” observed the CEO. It also pointed to “an environment of macro-economic and sectoral difficult in Egypt.” However, Vicat has “seen improvements on other regions clefs,” said Guy Sidos, citing India, the United States and France.

 

About half of 2017, the activity of Cement, which weighs a little more than half of the operating revenue of the group, is increase of 0.9% at constant scope and exchange rates. The activity Concrete and Aggregates (one-third of the operational) is also increasing, from 0.8%, still comparable. The gross operating Surplus (Ebitda) fell 8.7% over the first half, to € 188 million (-13% at constant scope and exchange rates).

 

This decrease is attributable mainly to a “significant deterioration” in Egypt, where the Ebitda was negative in the first half, as well as a “significant decline” in Turkey. In addition, the group also reports a decline in Switzerland and a “removal measured” in France, where, however, the environment sector “continues its gradual improvement”. These negative elements were partially offset, in particular by a “net improvement” in India, a “solid growth” in Kazakhstan and growth in the United States, despite a current climate particularly difficult.

 

This Friday 4 August 2017, the cement company Vicat fell by nearly 6% on the Paris stock Exchange.

 




Leave a Reply