(Boursier.com) — Vicat fell more than 5% this Friday to 23.20 euros, while the broker HSBC downgraded the cement company to ‘keep’, while lowering its target price from 32 to 23 euros. In an environment marked by very high cost inflation, the group’s turnover in the 1st half showed an increase despite everything, the result of a significant increase in selling prices, which compensated for the drop in volumes delivered. . However, margins are under pressure. Among other brokers’ opinions, Berenberg had already adjusted its target from 32 to 29 euros with an opinion to ‘keep’ and Citi had reduced its target from 43 to 35 euros, while remaining on the buy side…
Thus, the Group’s consolidated revenue amounted to 1.755 billion euros (1.56 billion euros in the 1st half of 2021), an increase of 12.5% on a reported basis and +14.5% on a reported basis. scope and constant exchange rates.
The group’s operating revenue came to €1.779 billion, up +12.1% on a reported basis and +14.1% at constant scope and exchange rates. Consolidated EBITDA reached 269 million euros during the 1st half of 2022, down 10.4% on a reported basis and -9.8% at constant scope and exchange rates. The EBITDA margin was 15.3%, down -390 points compared to the unfavorable comparison base of the first half of 2021.
The cement manufacturer’s operating income ultimately stood at 128 ME, down 20.5% on a reported basis and -18.3% at constant scope and exchange rates. This decline is mainly due to the contraction in operating profitability. The group share of net income fell on arrival by 22.7% at constant scope and exchange rates and -16.8% on a reported basis, to 78 ME.
Prospects displayed
In 2022, Vicat expects a significant increase in its turnover sustained by the growth of its activity and the sharp increase in selling prices. The EBITDA generated by the group in 2022 should grow, but less significantly than in 2021.
Considering these elements, Vicat expects an erosion of its EBITDA margin in 2022…
During the second half of 2022, the group will continue its investment efforts. Industrial investments are expected to increase compared to 2021, and should be around 400 ME, including around 130 ME of “maintenance” investments and 270 ME of “strategic” investments.