Buzzi Unicem

Strong Q3 sees guidance lifted and debt ahead

  • Sectors : Building Materials
  • Companies : Buzzi Unicem

Ratings and price correct at time of issue.

  • Buzzi Unicem

    Closing Price: 2219c

  • RATING 04/04/16

  • PREVIOUS RATING 05/08/15



Buzzi Unicem’s (BZU) Q3 trading statement stands out in the cement sector. Sales were comfortably ahead of estimates; prices were positive in all markets in both cement and RMC; net debt is already below end-year expectations; and FY guidance was better. The USA was the positive delta in the quarter, helping to lift the overall out-turn. The group is now suggesting that consensus estimates of c.€650m (pre-IFRS) look sensible (consensus is typically €20m ahead of guidance). The debt performance is equally impressive and should fall close to 1x EBITDA by year-end. This leaves BZU with lots of capital allocation options in 2020.

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Nov 8 2019, 07:55 GMT