(AOF) – Vicat reported an increase in its turnover for the third quarter of around 15.7%, to 2.697 billion euros. In France, in the Cement business, operational sales were up 8.6% at constant scope over the first nine months. Given an unfavorable basis for comparison linked to the dynamism of the French market over the same period last year, this performance reflects a slight contraction in demand and a sharp increase in selling prices.
This trend was confirmed in the third quarter, with operational sales up sharply by +12.6%.
Operational sales for the Concrete & Aggregates business increased by +3.9% on a like-for-like basis. This development is the result of a further increase in demand for concrete, but a decline in aggregates.
In the United States, as in Brazil, the construction sector remains dynamic, despite the impact of inflation, rising interest rates and a high base of comparison, especially in Brazil. In the third quarter, consolidated sales increased by +11.8% at constant scope and exchange rates.
On the outlook side, the Group’s EBITDA in 2022 is expected to be down compared to 2021 and should be at a level at least equal to that generated in 2020. This update of the outlook takes into account the recent evolution of the activity and in particular the very sharp rise in electricity costs in Europe and the gradual ramp-up of the new furnace at the Ragland plant in Alabama.
Industrial investments in 2022 will reach 400 million euros. The group will pay particular attention to the reduction of its industrial investments from 2023, a trend which will accelerate in 2024 in order to take this new environment into account, and in accordance with its debt reduction objectives.
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CSR permeates the sector
Unicem created a CSR label in 2018, which met with some success: in concrete, nearly 700 sites, i.e. half of the activity in France, have committed to the approach, as well as 400 sites constituting almost 30% of the turnover of French quarries. This approach encompasses several initiatives such as reducing the carbon footprint of products or improving relations with suppliers. Great efforts have been made in terms of recycling, which now reaches 70% in the sector, compared to about 50% ten years ago, and while it was almost non-existent thirty years ago. However, Unicem would like the public authorities to strengthen their support for this CSR approach through the use of labeled companies.