Vicat, Solid growth and continued decarbonization Strategy

Vicat, a global leader in the production of cement, ready-mixed concrete, and aggregates, continues to demonstrate robust financial performance while strongly committing to sustainability initiatives. With a significant presence in Europe, the Americas, Asia, the Mediterranean, and Africa, Vicat focuses on innovation and reducing carbon emissions to drive its growth.

Recent publications

For the first half of 2024, Vicat reported an organic revenue growth of 4.8%, reaching €1,937 million, compared to €1,912 million for the same period in 2023. EBITDA increased by 12.3% to €353 million. This performance is primarily driven by the dynamism of the markets in the United States and emerging countries, offsetting the weakness of the residential market in France.

Growth and expansion strategies

Vicat plans to invest approximately €325 million in 2024 in various industrial projects, including the construction of a new kiln in Senegal. These investments aim to support future growth and improve operational efficiency. Additionally, the group anticipates a continued reduction in net debt through EBITDA growth, working capital control, and disciplined investment.

Decarbonization initiatives

Vicat is strongly committed to decarbonization projects to achieve its carbon neutrality goals. The group has reiterated its 2030 target to reduce direct specific emissions to 497 kg of CO2 per ton of cement equivalent and to 430 kg of CO2 per ton of cement equivalent in Europe. This reduction relies on proven technologies and innovative projects such as increased use of alternative fuels and carbon capture and storage (CCS) projects. For example, in the United States, the switch to Type 1L cement and the use of alternative fuels at Ragland have contributed to improving the clinker factor.

The challenges of decarbonization for the cement industry are significant. Cement production is a major source of CO2 emissions due to the chemical processes involved in limestone calcination. To reduce these emissions, Vicat focuses on several levers: improving energy efficiency, increasing the use of alternative fuels, and developing new technologies like carbon capture and storage. These initiatives aim to reduce the carbon footprint while meeting the growing demand for more sustainable construction materials.

Outlook

For the full year 2024, Vicat remains optimistic about the growth of its sales and operational profitability. The group expects that dynamic markets and infrastructure projects, particularly in France, will mitigate the current weakness in the residential market. Vicat also plans to continue developing its sustainability initiatives, further strengthening its position as a leader in the construction materials industry.

You will find a presentation file on Vicat attached.

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