Cement sales at 26.3 million tons, in line with last year; ready-mix concrete sales at 9.7 million cubic meters (-3.7%)

In the last quarter volume trends improving in almost all the countries where we operate and significant changes in the consolidation scope (inclusion of Brazil, exit of Ukraine)

Consolidated net sales at €4,313.0 million, substantially stable year on year, also on a like-for-like basis (-0.7%)

Recurring EBITDA for 2024 is expected to reach approximately €1,270 million, marking a slight improvement over 2023, driven by the enlarged consolidation perimeter

 

Consolidated figures		2024	2023	24/23
Cement sales	t/000	26,331	26,343	-0.0%
Ready-mix concrete sales	m3/000	9,679	10,050	-3.7%
Net sales	€/m	4,313	4,317	-0.1%
		Dec 24	Dec 23	Change
Positive net financial position	€/m	755	798	(42)

 

The Board of Directors of Buzzi SpA has met today to examine the preliminary figures for the financial year just ended.

In 2024, the group's consolidation scope underwent significant changes starting from the fourth quarter, following, on one hand, the sale of assets in Ukraine and, on the other, the acquisition of the remaining 50% of the capital in the Brazilian joint venture. On a like-for-like basis, the group's sales volumes would have declined, due to the unfavorable demand trend in most of the reference markets, except for Poland and the Czech Republic. However, this weak dynamic was offset by the net positive contribution of extraordinary transactions, which led our cement deliveries to close the year substantially in line with the levels reached in the previous year.

Global economic activity continued to expand in the final months of the year, albeit with evident divergences among major markets. As a matter of fact, growth remained steady in the United States and China, driven respectively by the services sector and exports, while in the Eurozone the economy weakened further, hampered by sluggish domestic consumption and external demand. International trade slowed down in the third quarter, and high-frequency indicators suggest a similar trend at year-end. Inflation in OECD countries is decreasing, despite persistently high rates in the services sector. Since early October, oil prices have increased slightly, while natural gas prices remain volatile due to upward pressures on both demand and supply. The latest projections estimate global GDP growth of 3.2% in 2024, with a similar pace expected for the following two years (+3.3% in both 2025 and 2026). However, macroeconomic outlooks remain highly exposed to risks associated with escalating geopolitical tensions and potential tightening of U.S. trade policies.

In the United States, the economy remained solid, with real GDP posting a modest increase in the third quarter, supported by resilient domestic demand and public spending. Private investments slowed down, while employment rebounded after declining in October. Moreover, PMI indices indicate a positive trend in the services sector in the final months of the year, partly influenced by the election outcome. The disinflation process continues, despite a slight uptick in the inflation rate in December (2.9%).

In the Eurozone, GDP moderately accelerated in the third quarter, though it was influenced by temporary factors, including increased demand linked to the Olympic Games in France. Among other countries, economic activity remained largely stagnant in Italy and Germany. In the fall, industrial production remained weak and the strength of the services sector slowed down with the end of the tourist season. Consumer spending, along with household and business confidence, showed a deteriorating trend towards the end of the year, while investments continued to be impacted by restrictive financing conditions. In this context, GDP growth forecasts have been recently revised downward, now projecting an increase of 0.8% for 2024 and 1% for 2025.

In Italy, after stagnating during the summer months, economic activity remained weak in the fourth quarter due to the subdued performance of the manufacturing sector and a slowdown in services, although the latter continued to expand. Following a surge in the summer, private consumption decelerated instead, while investment activity remained constrained by high borrowing costs. The construction market continued its slight strengthening, driven by projects linked to the National Recovery and Resilience Plan (PNRR). At the end of the year, employment continued to grow, while inflation remained below 2%, supported by a renewed decline in energy prices.

As far as emerging countries are concerned, after a third quarter moderately accelerating, the Mexican economy is estimated to have slowed down in the autumn, with signs of weakness in the industrial sector and a softening of domestic demand. In contrast, economic activity in Brazil continued to exceed expectations in the third quarter, driven by strong consumer demand, supported by a robust labor market and expansionary fiscal policies.

Looking at monetary policy decisions, during the autumn months, the Federal Reserve and the European Central Bank implemented two consecutive rate cuts in November and December. Among emerging economies, Mexico also continued easing its monetary tightening with two sequential cuts during the quarter, while in Brazil, the central bank raised the benchmark interest rate in its last two meetings of 2024.

In this context, cement sales of the group amounted to 26.3 million tons, stable compared to 2023, while ready-mix concrete output, equal to 9.7 million cubic meters, was down compared to the production of last year (-3.7%). Sales prices favorably influenced the results, as did the changes in the scope of consolidation (+€58.1 million) while foreign exchange rate changes negatively impacted for €34.0 million. Consolidated net sales for the financial year therefore decreased from €4,317.5 to €4,313.0 million. Like for like net sales would have been down 0.7%.

Net sales breakdown by geographical area is as follows:

million euro	2024	2023	∆ %	∆ % lfl
Italy	818.0	818.3	-0.0	-0.0
United States of America	1,726.8	1,742.7	-0.9	-0.8
Germany	792.3	872.0	-9.1	-9.1
Luxembourg and Netherlands	183.0	214.1	-14.5	-12.2
Czech Republic and Slovakia	208.5	204.8	+1.8	+6.3
Poland	173.7	156.7	+10.8	+5.1
Brazil	85.8	0.0	n.s.	n.s.
Ukraine	71.3	85.6	-16.7	+22.6
Russia	294.0	284.6	+3.3	+12.2
Eliminations	(40.5)	(61.3)
	4,313.0	4,317.5	-0.1	-0.7
Mexico (100%)	998.3	1,025.0	-2.6	+0.7

 

The net financial position at the end of 2024, including long-term financial assets, is positive and amounts to €755.5 million, showing an unfavorable variance versus €798.0 million of year-end 2023 (it was €1,001.0 million at the end of September 2024).

Italy
The latest projections for the Italian economy indicate GDP growth of 0.6% in 2024, while preliminary data point to an average annual inflation rate of 1%, significantly lower than in 2023.
The construction market is estimated to contract in 2024, mainly due to the weakness of the residential sector. As a matter of fact, investments in housing showed a progressive deterioration throughout the year, particularly due to the ongoing reduction in renovation bonuses. Additionally, the development of new residential constructions remains hindered by the challenging macroeconomic context. On the other hand, the momentum provided by the National Recovery and Resilience Plan (PNRR) continues to support public building projects and infrastructure, as well as favor some segments of the non-residential sector.
During the autumn months, hydraulic binders and clinker sales maintained the levels reached in the same period of the previous year, mainly thanks to the favorable performance of exports. Despite the improvement in the latter part of the year, cement volumes ended the year declining and ready-mix concrete output followed a similar trend. On the other hand, selling prices showed a positive change compared to the previous year, allowing the revenue from Italian operations to reach €818.0 million, in line with the 2023 figure. 

United States of America
The latest forecasts for the US economy suggest that GDP could grow by 2.8% in 2024, with the annual inflation rate decreasing to 2.9%.
In this context, the construction sector showed a positive trend, albeit at a moderated pace, due to the favorable contribution from the three main destination markets. The residential sector experienced slight growth, driven by renovation work on the existing housing stock. However, the still challenging credit access conditions continued to weigh on investments in new residential construction and the commercial sector. In contrast, the non-residential market as a whole and public works saw more significant growth, thanks to the boost from government programs, which were the real drivers of the industry.
The fourth quarter confirmed the slowdown in demand that had already been evident in the first nine months of the year. Our cement sales closed the year with a contraction compared to 2023, showing slower growth in the river region and a more dynamic evolution of deliveries in Texas. The ready-mix concrete sector, on the other hand, rebounded in the autumn quarter, closing the financial year with a slight increase. Selling prices remained solid, showing an improvement year-on-year, while the exchange rate changes (-0.1%) had a limited impact on the translation of results into euro.
Thus, overall net sales amounted to €1,726.8 million, basically in line with last year (-0.9%) compared to €1,742.7 million in 2023.

Central Europe
In Germany, economic activity remained rather subdued, with low production levels, reduced investments and weaker-than-expected consumer spending. For 2024, a slight decline in GDP (-0.2%) is projected, with an average annual inflation rate of 2.2%. The construction market further weakened, burdened by still-high financing costs and significant uncertainty in economic policies. Residential investments declined more sharply than expected also in the second half of the year, while expansion in the infrastructure sector remains limited.
Our sales volumes of both hydraulic binders and ready-mix concrete closed the year clearly contracting, despite the stability showed in the fourth quarter, also favored by the comparison with a particularly negative second half of 2023. Average selling prices remained stable year on year, thus leading overall net sales to reach €792.3 million, down 9.1%, compared to €872.0 million in 2023.

In Luxembourg and the Netherlands, our cement sales regained ground in the second half of the year compared to the particularly depressed levels of the previous year, closing 2024 with moderate growth. The ready-mix concrete segment, however, despite an improving trend in the autumn months, recorded a significant decline for the year under review, also due to the divestment of operations in France. Average cement selling prices showed a slight year-on-year decline, while the comparison remained moderately positive for concrete. As a result, total revenue in 2024 decreased from €214.1 million to €183.0 million (-14.5%), also penalized by the change in the consolidation scope (€5.7 million), net of which the decline would have been -12.2%.

Eastern Europe
In Poland, the economy experienced a strong recovery in 2024, with GDP expected to grow by 3%, driven by easing inflationary pressures and strengthened private consumption, supported by rising wages and public spending for households. However, infrastructure and non-residential investments showed a rather slow momentum, partly due to the transition to the new EU financial framework. In contrast, the housing sector showed signs of improvement, benefiting from less stringent credit access requirements.
In this context, our cement deliveries further accelerated in the fourth quarter, allowing us to close the year with positive growth compared to 2023. Ready-mix concrete sales also maintained a solid trend throughout the year, recording double-digit percentage growth. Additionally, local currency prices contributed positively to the results, despite a moderating trend compared to the beginning of the year. Net sales in euro came in at €173.7 million, up 10.8% compared to €156.7 million in 2023, also thanks to the strengthening of the zloty (+5.2%): at constant exchange rate, net sales would have been up 5.1%.

In the Czech Republic, the economy returned to growth in 2024, driven by household consumption and public spending. However, investment growth remained limited due to the slow absorption of EU funds and weak foreign demand. Activity in the real estate market showed greater dynamism, accompanied by an increasing demand for credit access. However, despite positive demand signals, supply constraints continue to hinder investments in the sector.
In line with market trends, our cement sales recorded a positive performance in 2024, showing even greater vitality in the last part of the year. The average selling prices of cement in local currency also remained strong. After a weak first half, ready-mix concrete output regained ground, closing the year slightly increasing. Consolidated net sales amounted to €208.5 million, up 1.8% compared to 2023, although affected by the depreciation of the Czech koruna (-4.6%). On a constant exchange rate basis, as a matter of fact, the turnover would have grown by 6.3%.

In Ukraine, monetary and fiscal policy decisions helped maintain a certain level of macroeconomic stability, despite the ongoing weakness in the real economy and the costs associated with defending the territory. As a result of the sale of our assets in October, the results of this region have been deconsolidated from the fourth quarter, leading to a natural decline in cement and concrete deliveries compared to the previous year. The average prices in local currency positively contributed to the results in the first nine months of the year, while the exchange rate fluctuation negatively impacted the translation of balances into euro. Thus, net sales stood at €71.3 million, down 16.7%. Like for like the change would have been +22.6%.

Brazil
The Brazilian economy proved resilient also in the second half of the year, with GDP data exceeding expectations in the third quarter. The labor market strengthened with a decreasing unemployment rate, fiscal policy maintained its expansionary orientation and credit disbursement remained vibrant. This combination helped support domestic demand, as indicated by the growth in household consumption and the increase in gross fixed capital investment, despite the tightening of monetary policy. The latest estimates foresee economic activity expanding by 3.7% in 2024.
Referring to 100% of the operations, sales volumes ended 2024 moderately improving, confirming the positive performance of demand across all regions of the country, also in the autumn quarter. Prices in local currency, however, remained essentially stable year on year.
Net sales amounted to €374.0 million, declining (-5.1%) versus €394.0 million of the previous year, mainly due to the depreciation of the Brazilian real (-7.9%). As a matter of fact, at constant exchange rate, net sales would have been up 2.4%.
Starting from the fourth quarter, Brazilian activities were included in our consolidation scope and, in the year under review, contributed €85.8 million to the group's turnover.

In Russia, a recovery in GDP is expected, with a growth rate projected for 2024 of 3.8%, supported by a robust labor market and resilient domestic demand.
In 2024, the volumes sold decreased compared to the levels of the previous year, despite the recovery observed in the autumn months. On the other hand, the selling prices in local currency consolidated a significant improvement year over year, but the depreciation of the ruble (-8.6%) weighed on the translation of results into euro.
As a matter of fact, net sales stood at €294.0 million, up 3.3% compared to €284.6 million of 2023. At constant exchange rates, however, net sales would have been up 12.2%.

Mexico (valued by the equity method)
In the year under review, the Mexican economy showed a rather subdued performance, with the latest projections pointing to GDP growth of 1.8% for 2024, slowing down compared to the previous year. After a weak first half, activity accelerated in the third quarter, primarily driven by growth in the primary sector and services. However, this trend is expected to attenuate in the final months of the year. Private consumption is moderating, manufacturing remains sluggish, and the construction market showed volatile trends, with slightly positive signals in October, after a weak previous quarter. Foreign demand was also underperforming for most of the year, despite a modest recovery in the last few months. The labor market remains robust but is cooling down, while overall inflation dropped to 4.2% in December.
Cement volumes registered by our joint venture closed 2024 down compared to last year, while ready-mix concrete output recorded a positive trend. Sales prices, in local currency, favorably contributed to the results both in cement and ready-mix concrete sectors. With reference to 100% of the joint venture, in 2024, net sales came in at €998.3 million, down 2.6% on the previous year, penalized by the depreciation of the Mexican peso (-3.4%): at constant exchange rate net sales would have remained stable (+0.7%).

Outlook 2024
Despite an improving trend in the latter part of the year, 2024 showed some weakness in demand across most of the countries where we operate, except for Poland and the Czech Republic, although offset by a favorable development of selling prices.
The reduction in variable costs, above all fuels, contributed to further margin expansion in Italy and the United States, whereas the low production levels negatively impacted operating leverage in Central Europe. The extraordinary transactions completed in October altered the group’s geographical exposure, with the exit from Ukraine and the consolidation of Brazil, leading to a net positive impact on consolidated results.
Therefore, based on preliminary available data, we anticipate that the consolidated financial statements for 2024 will close with a recurring Ebitda of approximately €1,270 million, in line with the expectations communicated at the beginning of November. On a like-for-like basis, operating results are expected to remain broadly in line with the previous year, reaffirming the effectiveness of the company’s strategic and industrial roadmap.

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Alternative performance measures
Buzzi Unicem uses in its financial disclosure some alternative performance measures that, although widespread, are not defined or specified by the accounting practice. Pursuant to Consob Communication no. 92543/2015 and the guidelines ESMA/2015/1415 set out below is the definition of the measures which have been used in this disclosure.

Net financial position: it is a measure of the capital structure determined by the difference between financial liabilities and assets, both short and long term. Such items include all interest-bearing liabilities or assets and those connected to them, such as derivatives and accruals.

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The manager responsible for preparing the company’s financial reports, Elisa Bressan, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

Company contacts:
Investor Relations Assistant
Ileana Colla
Phone +39 0142 416404
Email: ileana.colla@buzzi.com