Vicat succeeded in offsetting the rise in energy costs by increasing its selling prices

French cement manufacturer Vicat said on Wednesday that the increase in its selling prices since the start of the year had offset rising energy costs, announcing a 4,2% increase in its turnover in the 3rd trimester.

At 794 million euros, the turnover for the period July-September brings to 2,35 billion that over the first nine months of 2021, an increase of 13,9% compared to the comparable period of 2020 , said the cement manufacturer in a press release.

The figures published Wednesday reflect "the dynamism" of Vicat markets "in a context of gradual exit from the health crisis," said its CEO Guy Sidos quoted in a press release. The third quarter was marked by a "particularly unfavorable" basis of comparison in France, in the Americas and in India, since the third quarter of 3 had experienced a "catching-up" effect after the Covid crisis at the start of the year.

Over nine months, the largest increases in revenue were recorded in the Mediterranean zone (+ 36,3% to 166 million euros at September 30, 2021), and the Asia zone (+ 30,6% to 320 millions of euros).

In France, revenue increased by 15,5% to 824 million euros over nine months, and in Africa by 22,3% to 242 million euros. Only the Europe zone (excluding France) fell by 4,8% to 301 million euros, mainly due to the sale of the Creabéton prefabrication activity recorded on June 30, 2021.

By activity in France, the operational turnover of the Cement activity was up 10,8% at constant scope over the nine months, despite a decline of 9,3% in the third quarter, due to the "exceptional recovery "recorded last year at this time. Selling prices and volumes are "up sharply" over the nine months.

Ditto for the Concrete and aggregates activity, where sales rose 19,5% on a like-for-like basis, with selling prices increasing in aggregates and stable in concrete.

In the United States as in Brazil, "the sector remains dynamic, in particular facilitating price increases".

The construction of a new cooking line at the Ragland plant in Alabama continued with the objective of commissioning in the first quarter of 2022, the group said. This installation "will make it possible both to meet strong market demand by increasing the capacity of the plant, to greatly reduce production costs, and to contribute to the reduction of the group's CO2 emissions".

Over the whole of the 2021 financial year, the results of which will be announced on February 15, 2022, the group expects an increase in its EBITDA operating profit, as well as a "favorable trend in average selling prices".