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Buzzi’s H1 23 results showed net sales up by 14.3% despite a lower sales volume, thanks to price increases. The high cost of inflation was offset by price hikes, resulting in an increase to EBITDA and a 7.2pp margin increase. Costs are stabilizing in 2023, at a level higher than in 2022. As the company will focus on margin stability, we expect prices to follow a similar trend. Thanks to these strong results, Buzzi has upgraded its guidance.
Companies: Buzzi Unicem (BZU:BIT)Buzzi Spa (BZU:MIL)
AlphaValue
Buzzi’s FY22 results showed net sales up 16% despite a lower sales volume, thanks to price increases and the positive impact of FX. The high cost of inflation put downward pressure on EBITDA, resulting in an 80 bps margin decline. Energy prices are expected to stabilize in 2023, at a level higher than in 2022. As the company will focus on margin stability, we expect these high prices to continue.
Buzzi released its H1 results with net sales up by 17% despite a decline in volume sales. Due to high cost inflation, EBITDA grew disproportionally by only 4%, registering a margin decline of 250bp. High D&A&I costs led to a 58% decline in reported NI but it will not impact our NI because it is adjusted for impairments. Following this result, we will revise our estimates upwards to resonate with management’s guidance of a flat lfl EBITDA for FY22.
Buzzi released its Q1 trading statement with net sales up by 17.2% (+14.5% lfl), the growth being driven mainly by Eastern and Central Europe as well as the US. The company has reiterated its outlook for the full year and, additionally, has introduced quantifiable sustainability targets for 2030 and 2050, in line with its peers and in accordance with the Paris agreement. We leave our estimates unchanged following this trading update.
Buzzi published a good set of results. It observed net sales growth in all four regions, reaching €3,446m (+6.9% yoy) and an organic EBITDA growth of 4.2% yoy. Buzzi generated ~€600m of net cash from operations and has proposed a dividend of €0.4/share (+60% yoy). For 2022, Buzzi expects a continuity in the demand momentum but operating margins will be significantly impacted in Russia, Ukraine and Italy due to the war.
Buzzi released its H1 results with net sales up by 5.8% (+4.5% lfl), the growth driven mainly by Italy, which benefited from the strengthening in domestic demand and an easy comparison base. FX had an unfavourable impact of €81m and €22m on sales and EBITDA, respectively. For the full year, EBITDA is still expected to be below FY20’s level.
Buzzi released its Q1 trading statement with net sales down by 0.8% (+4.5% lfl), the growth driven mainly by Italy, which benefited from the strengthening in domestic demand and an easy comparison base. FX had a significant impact of -5% on sales. Buzzi has reiterated its outlook for the year.
Buzzi published a good set of results. Despite the pandemic, it achieved flat sales and an EBITDA growth of 7% yoy. Along with strong operating cash flow generation, Buzzi also benefited from the sale of Kosmos Cement’s assets (+€103.6m impact on net income). It has a strong cash position, with net debt down from €568m to €242m, and Buzzi is forwarding the benefits to the shareholders through a higher dividend and a share buy-back programme.
Buzzi announced 9m sales figure that were in line with last year’s, following which management now expects the recurring EBITDA to be in line with last year’s level instead of a 5-10% decline as guided during the H1 results. Following this trading update, we will revise our numbers upwards.
Companies: Buzzi Spa
Buzzi announced a good set of results with a strong performance registered in the US due to higher demand, supportive pricing, tailwind from input costs and favourable FX. However, management has a conservative outlook for the US for H2, which largely contributes to its EBITDA outlook of -5-10% yoy. Buzzi’s results were better than expected and, hence, we will be updating our numbers upwards.
Buzzi released its Q1 trading statement with net sales up by 2.5% lfl, benefiting from favourable pricing, especially in Eastern Europe, and favourable weather in the US. Italy was significantly impacted by the lockdown and, even if the production activity returns to normal, domestic sales are most likely to remain below the 2019 level in Italy. Buzzi will provide some guidance post H1, after some more visibility.
Buzzi announced its 2019 preliminary results. Total sales were €3.2bn, up by 12.1% (8.6% like for like). The company performed below our expectations in all regions, except for the US where its sales were 7.5% above our expectations. The prime contributor to the higher sales wasn’t volume growth or price increase, but rather the strengthening of the USD. Management confirmed its recurring EBITDA at ~€700m. The minor tweaks to the model will not change our recommendation of SELL.
Management believes that the recurring EBITDA of FY19 will be higher than that assumed in the guidance previously disclosed to the market. Following this earnings release, we expect to increase our target price by some 5-10%. This should trigger a change in recommendation from Sell to Reduce.
As expected from the good earnings release of HeidelbergCement, earlier in the same day, in North America thanks to good weather, Buzzi posted outstanding growth in Q1 19 with an increase in sales of 17.6% lfl. Following this release, we will increase our EBITDA forecast by some 5% with an expected similar impact on the target price. However, we don’t intend to change our Reduce recommendation.
Cement capacity is excessively dependent in terms of profitability on the US and Mexico: virtually all profits stem from these two countries. Hence, as North America has reached a high point in the cycle and with the inversion of the yield curve, a recession could occur. As a consequence, we expect to change our recommendation from Add to Reduce.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Buzzi Spa. We currently have 34 research reports from 2 professional analysts.
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