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Buzzi Unicem Investor Presentation 2024
4218_ct_2025-03-28_cd0dfcfb-1041-447d-92d0-3eae6dfeff1f.pdf
Investor Presentation
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FY 2024 RESULTS
28 March 2025
Pietro Buzzi – CEO
FY 2024 IN BRIEF
Stable lfl Net Sales, thanks to the favorable price dynamic counterbalancing volume weakness.
EBITDA grew by 2.6%, mainly driven by changes in scope (+28m) and despite fx headwind (-10m). EBITDA Margin further improved to 29.6%.
Stable operating results at constant perimeter, with positive price over cost evolution in Italy and US offsetting lower margins in Central and Eastern Europe.
Sound cash generation from operating activities, to serve higher capex, M&A investments and improved shareholder returns.
2025 group recurring EBITDA expected to consolidate the excellent result level reached in 2024
PORTFOLIO EXPANSION AND OPTIMIZATION RECENT M&A TRANSACTIONS
NET SALES VARIANCE BY REGION
(€m)
EBITDA VARIANCE
(€m)
CASH GENERATION & CAPITAL ALLOCATION
UNITED STATES OF AMERICA
Credit conditions continued to weigh on investments in new housing, while government programs still fueling non-residential and public works
2024 cement volumes down (-5.7%), driven by uncertain dynamic in the river region; rmx rebound in Q4 and turned slightly positive on a FY basis (+1.8%)
Margin strengthened in 2024, mainly thanks to positive price momentum
Worsened production costs, despite energy saving, due to increased raw materials and fixed items
Negligible FX effect on Net Sales and EBITDA
ITALY
Still struggling residential activity both in renovation and new constructions. Confirmed support from PNRR to public building and infrastructure
Declining volumes in 2024 both in cement (-3.7%) and rmx (-4.2%), despite the stabilization registered in Q4 trend
Solid pricing development, together with a favorable variance in fuel expenses, widening the price over cost dynamic
Improved operating results and margin, despite the lack of the tax credit benefit (12 million in 2023)
CENTRAL EUROPE
Weak demand evolution, above all in Germany where residential investments contracted more than expected in H2 and infrastructure remained hindered by uncertain economic policies.
Although Q4 volumes benefited from an easy comparison with a subdued end of 2023, FY volumes declined both in cement (-9.3%) and rmx (-11.5%)
Cement price over cost dynamic further strengthened in Germany thanks to energy savings but worsened in Benelux. Contraction in rmx margins.
Change in Benelux ready-mix scope negatively contributing to Net Sales (-5.7 million) and EBITDA ( -0.7 million)
EASTERN EUROPE
Construction activity acceleration in the second part of the year, with signs of improvement in residential demand both in Poland and Czech Republic
2024 cement volumes down (-4.7%), impacted by the Q4 Ukraine deconsolidation and slowdown in Russia; rmx volumes increased (+5.6%), despite scope change
Price dynamic remained favorable, but production cost worsened, also due to higher energy expenses
Negative FX contribution to Net Sales (-32.2 million) and EBITDA (-9.7 million); unfavorable change in scope impact on Net Sales (-22.0 million)**
BRAZIL
Positive development in the construction sector though challenges persist due to the shortage of skilled labor
After a stable H1, cement volumes rebound in the second part of 2024 closing the year with a favorable trend (+2.1%)
Muted price dynamic with almost neutral contribution to operating results;
margin recovery from 2023 level, thanks to improving variable costs
Negative FX impact on Net Sales (-29.6 million) and EBITDA (-7.9 million)
From Q4, the Brazilian operations were included in our scope of consolidation, contributing for 85.8 million to Net Sales and 28.5 million to EBITDA.
MEXICO
Volatile performance in the construction activity, with a generalized investments slowdown during the second part of the year
Decline in 2024 cement volume (-4.2%); confirmed favorable momentum in ready-mix in H2 leading to volume growth on a FY basis (+10.6%)
Positive price effect in local currency
Higher production costs, driven by fixed and raw materials expenses, despite reduced fuel costs; reiterated excellent operating results and margins
Negative FX contribution to Net Sales (-33.7 million) and EBITDA (-15.0 million)
OUTLOOK 2025
Construction activity expected to stabilize at low level in almost all the major markets we operate in. However, geopolitical risk and the resulting impact on international trades may cause a significant level of uncertainty about the outlook
- USA: improving but still limited trend in residential; confirmed cement demand support from infrastructures spending and reshoring activity, but at a more moderate pace.
- Italy: resilient demand driven by the implementation of PNRR, despite weak residential.
- Central Europe: housing investments still weighting on demand that is expected to stabilize after the significant decline experienced in previous years
- Eastern Europe: solid construction activities in Czech Republic e Poland
- Brazil: sound domestic demand evolution to continue
- Mexico: deceleration of economic growth to cause a construction investments slowdown
- Increasing production costs driven by fixed cost and raw materials inflation, despite a less volatile energy component at group level
Full commitment to the price over cost evolution in all the regions
Group recurring EBITDA expected to consolidate the 2024 level.
«OUR JOURNEY TO NET ZERO» ROADMAP UPDATE
APPENDIX
VOLUMES BY REGION
Cement volumes (mton) Ready-mix volumes (mm3 )
HISTORICAL VOLUME EVOLUTION
26.8 27.9 29.1 29.3 31.2 28.3 26.3 26.3 2017 2018 2019 2020 2021 2022 2023 2024
Cement (mt) Ready-mix concrete (mm3 )
PRICE INDEX BY COUNTRY
FX CHANGES
| 2024 | 2023 | ∆ | Current | |
|---|---|---|---|---|
| EUR 1 = | avg | avg | % | |
| USD | 1.08 | 1.08 | -0.1 | 1.08 |
| RUB | 100.41 | 92.46 | -8.6 | 90.62 |
| UAH* | 43.23 | 39.54 | -9.3 | 44.98 |
| CZK | 25.12 | 24.00 | -4.6 | 24.98 |
| PLN | 4.31 | 4.54 | 5.2 | 4.20 |
| MXN | 19.83 | 19.18 | -3.4 | 21.93 |
| BRL** | 6.22 | 5.40 | -15.2 | 6.19 |
NET SALES BY COUNTRY
| 2024 | 2023 | ∆ | ∆ | Forex | Scope | ∆ l-f-l | |
|---|---|---|---|---|---|---|---|
| EURm | abs | % | abs | abs | % | ||
| Italy | 818.0 | 818.3 | (0.2) | -0.0 | - | - | -0.0 |
| United States | 1,726.8 | 1,742.7 | (15.8) | -0.9 | (1.8) | - | -0.8 |
| Germany | 792.3 | 872.0 | (79.7) | -9.1 | - | - | -9.1 |
| Lux / Netherlands | 183.0 | 214.1 | (31.1) | -14.5 | - | (5.7) | -12.2 |
| Czech Rep / Slovakia | 208.5 | 204.8 | 3.7 | +1.8 | (9.3) | - | +6.3 |
| Poland | 173.7 | 156.7 | 17.0 | +10.8 | 9.0 | - | +5.1 |
| Brazil | 85.8 | 0.0 | 85.8 | n.s. | - | 85.8 | n.s. |
| Ukraine | 71.3 | 85.6 | (14.2) | -16.7 | (6.7) | (22.0) | +22.6 |
| Russia | 294.0 | 284.6 | 9.4 | +3.3 | (25.3) | - | +12.2 |
| Eliminations | (40.5) | (61.3) | 20.8 | ||||
| Total | 4,313.0 | 4,317.5 | (4.5) | -0.1 | (34.0) | 58.1 | -0.7 |
| Mexico (100%) | 998.3 | 1,025.0 | (26.7) | -2.6 | (33.7) | - | +0.7 |
| Brazil (100%) | 374.0 | 394.0 | (20.0) | -5.1 | (29.6) | - | +2.4 |
EBITDA BY COUNTRY
| 2024 | 2023 | ∆ | ∆ | Forex | Scope | ∆ l-f-l | |
|---|---|---|---|---|---|---|---|
| EURm | abs | % | abs | abs | % | ||
| Italy | 196.6 | 175.2 | 21.4 | +12.2 | - | - | +12.2 |
| United States | 663.8 | 639.1 | 24.7 | +3.9 | (0.7) | - | +4.0 |
| Germany | 164.1 | 189.1 | (25.0) | -13.2 | - | - | -13.2 |
| Lux / Netherlands | 14.5 | 28.1 | (13.6) | -48.4 | - | (0.7) | -47.0 |
| Czech Rep / Slovakia | 68.0 | 72.0 | (4.0) | -5.6 | (3.1) | - | -1.3 |
| Poland | 40.1 | 38.2 | 2.0 | +5.2 | 2.1 | - | -0.3 |
| Brazil | 28.5 | 0.0 | 28.5 | n.s. | - | 28.5 | n.s. |
| Ukraine | 3.6 | 5.6 | (2.0) | -35.4 | (0.3) | 0.2 | -31.6 |
| Russia | 97.1 | 96.2 | 0.9 | +0.9 | (8.3) | - | +9.6 |
| Adjustments | (0.2) | (0.3) | |||||
| Total | 1,276.1 | 1,243.2 | 32.9 | +2.6 | (10.4) | 28.0 | +1.2 |
| Mexico (100%) | 445.2 | 465.5 | (20.4) | -4.4 | (15.0) | - | -1.1 |
| Brazil (100%) | 99.9 | 88.7 | 11.2 | +12.7 | (7.9) | - | +21.6 |
ENERGY COSTS
CONSOLIDATED INCOME STATEMENT
| 2024 | 2023 | ∆ | ∆ | |
|---|---|---|---|---|
| EURm | abs | % | ||
| Net Sales | 4,313.0 | 4,317.5 | (4.5) | -0.1 |
| EBITDA | 1,276.1 | 1,243.2 | 32.9 | +2.6 |
| of which, non recurring | 4.5 | 5.9 | ||
| % of sales (recurring) | 29.5% | 28.7% | ||
| Depreciation and amortization | (274.2) | (258.4) | (15.8) | |
| Operating Profit (EBIT) | 1,001.9 | 984.8 | 17.1 | +1.7 |
| % of sales | 23.2% | 22.8% | ||
| Equity earnings | 16.4 | 161.5 | (145.1) | |
| Net finance costs | 74.9 | (5.4) | 80.3 | |
| Profit before tax | 1,093.2 | 1,140.9 | (47.7) | -4.2 |
| Income tax expense | (150.7) | (174.1) | 23.3 | |
| Net profit | 942.5 | 966.8 | (24.3) | -2.5 |
| Minorities | (0.2) | (0.3) | 0.1 | |
| Consolidated net profit | 942.3 | 966.5 | (24.2) | -2.5 |
CONSOLIDATED CASH FLOW STATEMENT
| EURm | 2024 | 2023 |
|---|---|---|
| Cash generated from operations | 1,178.3 | 1,049.7 |
| % of sales | 27.3% | 24.3% |
| Interest paid | (28.5) | (35.7) |
| Income tax paid | (217.2) | (195.2) |
| Net cash from operating activities | 932.6 | 818.8 |
| % of sales | 21.6% | 19.0% |
| Capital expenditures | (448.4) | (303.7) |
| Equity investments | (318.7) | (7.4) |
| Purchase of treasury shares | (147.2) | - |
| Dividends paid | (111.1) | (83.3) |
| Dividends received from associates | 89.7 | 84.7 |
| Disposal of fixed assets and investments | 120.1 | 22.0 |
| Translation differences and derivatives | 37.0 | (57.1) |
| Accrued interest payable | (2.8) | 11.7 |
| Interest received | 27.4 | 34.7 |
| Change in scope of consolidation and other | (221.5) | (10.6) |
| Change in net debt | (42.8) | 509.8 |
| Positive net financial position (end of period) | 755.2 | 798.0 |
NET FINANCIAL POSITION
| Dec 24 | Dec 23 | ∆ | Dec 22 | |
|---|---|---|---|---|
| EURm | abs | |||
| Cash and other financial assets | (1.425,0) | (1.271,1) | (153,9) | (1.349,7) |
| Short-term debt | 284,0 | 287,3 | (3,2) | 621,9 |
| Short-term leasing | 21,6 | 19,7 | 1,9 | 20,3 |
| Net short-term cash | (1.119,4) | (964,2) | (155,2) | (707,5) |
| Long-term financial assets | (19,4) | (233,9) | 214,5 | (249,8) |
| Long-term debt | 328,4 | 343,6 | (15,2) | 611,0 |
| Long-term leasing | 55,2 | 56,6 | (1,4) | 58,1 |
| Positive net financial position | (755,2) | (798,0) | 42,8 | (288,2) |
Gross debt breakdown 689.2
Long 56% Short 44% EUR 62% USD 25% Floating 52% Fixed 48% Bank 76% Leases 11% Others 13% BRL 13%
FY 2024 RESULTS
28 March 2025
Pietro Buzzi – CEO
