DAVY VIEW

Buzzi Unicem’s FY results were pre-announced, so today’s update contains few surprises. The figures highlight the extent of margin expansion achieved in H2 2020. That was impressive even it was helped by lower costs and a catch-up effect. The guidance will no doubt be interpreted as negative – but it shouldn’t be. A decline in EBITDA is already reflected in market estimates and management always tends towards caution at this time of year. We expected nothing less. Close to net cash and at 5.3x EBITDA, the stock continues to screen very well.