Buzzi Unicem - Outlook uncertain – financial position crystal clear

Davy Research
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Buzzi Unicem plans to buck the sector trend by not only paying its dividend but also starting a share buyback. That view is backed by the group’s robust financial position, with net debt/EBITDA at end-2019 of just 0.8x and cash to hand of over €800m. That is before proceeds received of c.€150m from the sale of its stake in Kosmos Cement. The group’s outlook comes with all the expected caveats around visibility and end-market uncertainty. However, provided the global lockdown proves temporary, we expect Buzzi Unicem will emerge as a sector winner.