Buzzi (BZU) H1 2024 earnings summary

Executive summary

• Net sales for H1 2024 were €2,054 million, down 4.5% year-over-year, with volumes impacted by weak demand in Central Europe and adverse weather in Italy and the US.

• Cement and ready-mix concrete volumes declined by 8.0% and 8.8% year-over-year.

• Recurring EBITDA reached €553 million, a 3.9% decrease year-over-year, but EBITDA margin remained stable at 26.7%.

• Net profit was €422 million, down 2.2% compared to H1 2023.

• Net cash position improved by €100 million since FY 2023, reaching €898 million at the end of June 2024.

Financial highlights

• Cement sales: 12.0 million tons (-8.0% year-over-year); ready-mix concrete: 4.7 million m³ (-8.8%).

• Net sales: €2,054 million (-4.5%); EBITDA: €553 million (-3.9%); recurring EBITDA: €548 million (-4.1%).

• Net profit: €422 million (-2.2%); EBIT: €425 million (-4.9%).

• Unfavorable FX impact: €27 million on sales, €8.5 million on EBITDA.

• Capex increased to €226 million, including €35 million for environmental and decarbonization projects.

Outlook and guidance

• Full-year 2024 guidance confirmed: recurring EBITDA expected to be similar to the record 2023 level.

• Construction activity is expected to improve in H2 2024, except for subdued investments in Central Europe.

• Civil engineering works remain the main industry driver, especially in Italy and the US.

• Expects recovery in Poland and continued resilience in the Czech Republic.

• Acquisition of the remaining 50% of the Brazilian JV is expected to close in October 2024.