Hello, and welcome to the Vicat full year 2021 conference. My name is Dan, and I will be your coordinator for today's event. Please note this conference is being recorded, and for the duration of your call, your lines will be on listen only. However, you will have the opportunity to ask questions towards the end. If you require technical assistance at any time, please press star zero on your telephone keypad to be connected with an operator. I will now hand you over to your host, Guy Sidos, Chairman and CEO of Vicat, to begin today's conference. Thank you.
Thank you, Dan. Good morning, ladies and gentlemen. Welcome to the Vicat Group's 2021 annual results presentation meeting. I'm Guy Sidos, Chairman and Chief Executive Officer of Vicat. Today, I'm joined by Hugues Chomel, Deputy CEO and Chief Financial Officer of Vicat. Before starting the presentation, you will also find our disclaimer on page two. It is intended to draw your attention to the fact that the elements relating to the 2022 financial year, which are presented here are assessments of expected trends in the group, various markets, and that they must not be considered in any way as forecast. On page three, now you can see that our presentation will be divided into six points. I will start by presenting the highlights of the 2021 financial year.
I will hand over to Hugues Chomel, who will analyze our performance as well as the main balance sheet and cash flow items. I will then review the latest developments within the group before concluding with the expected trends for the current year. Let's start on page four with the highlights of 2021. In a year of contrast, the Vicat Group's results rose sharply, marked by dynamic market and good sales price. The group's consolidated sales exceeded EUR 3 billion and grew by 16.2%. All financial indicators are up, with a +14.5% increase in EBITDA and a +33.3% increase in net profit group share. Confident in this outlook for profitable growth, the group continues to leverage its capacity for innovation and investment to achieve its objectives of carbon footprint reduction.
On this basis, the board of directors has decided to propose to the shareholders to vote the distribution of a dividend of EUR 1.65, an increase of 10%. Let's now switch to slide five, and I will now hand over to Hugues Chomel for a detailed analysis of our performance.
Good morning, everyone. On slide six, this slide shows the condensed income statement for year 2021. Consolidated sales increased by 11% on a reported basis and resulted from an organic growth in the business of 16.2%. An unfavorable exchange rate variance of -3.6% corresponding to a negative impact of EUR 102 million over the year. Due to the appreciation of the average euro rate and the depreciation of the Turkish lira, as well as a scope effect of -1.2%, resulting in a negative impact of EUR 34 million, chiefly reflecting the disposal of Creabeton Matériaux in Switzerland on June 30, 2021.
EBITDA reached EUR 619 million in 2021 at 11.1% on a reported basis, and 14.5% at constant scope and exchange rates. The EBITDA margin was 19.8%, stable compared to 2020. The EBIT margin reached 11.5%, up 90 basis points, having already risen by 90 basis points in 2020. Net income group share reached EUR 204 million, supported by an increase in operating profitability and an improvement in financial results. Please turn to page seven. Let us now look at the factors underlying the evolution of EBITDA in 2021 compared to the previous year. EBITDA was EUR 619 million in 2021, an increase of EUR 62 million on the 2020 figure.
This change takes into account an unfavorable exchange rate effect of -EUR 17 million and a negative scope effect of EUR 2 million. An increase is the result of the strong organic growth due to the continued dynamic activity in all the markets in which the Vicat Group operates, as evidenced by the increase in volumes coupled to a generally favorable price environment. This positive trend was partly offset by the increase in variable costs, driven by inflation, notably an increase in energy costs of 18%. On page eight, this chart, the chart on this slide shows the breakdown of the Group's EBITDA variation by geographical area on a like-for-like basis. It highlights the EBITDA growth of the vast majority of the markets in which the Group operates.
It's worth noting the strong upturn in France and Asia, which were particularly affected by the pandemic in 2020, as well as the solid recovery of the Mediterranean region. In Europe, EBITDA dropped by 5% at constant scope and exchange rates due to a non-recurring item recorded in Switzerland during the first half of the year. Let us now move on to the analysis by market, starting with France on slide 10. The group performance in France improved significantly during the year, despite a health context that weighed on the situation. The year was marked by strong growth in the first half of the year and a moderate dip in the second half due to an unfavorable comparison basis. In this context, EBITDA grew strongly over the whole period, despite the increasing impact of rising energy costs in the second half.
The EBITDA margin on consolidated sales increased to 18.7% compared to 17.7% in 2020. Please turn to page 11. Let's examine the business in Europe, which includes Switzerland and Italy. The Swiss market, which was barely affected by the pandemic in 2020, showed solid growth in 2021. Italy, which benefited from a very favorable basis of comparison in the first half, recorded a good performance for the full year. EBITDA for the region as a whole declined by 5%. Please move to page 12 for Americas. In both the United States and Brazil, despite a difficult health environment, business remained strong. In the United States, consolidated sales increased by 5% at constant scope and exchange rates over the year to EUR 485 million, despite an unfavorable base of comparison in California.
In Brazil, consolidated sales reached EUR 185.87 million, an increase of 30%. Business remained dynamic despite an unfavorable comparison base in the second half. The EBITDA was EUR 43 million, up 9% despite energy cost inflation. Please turn to page 13. Let us now look at the Asian zone. In India, after the first half that benefited from a particularly favorable basis of comparison, the second half was marked by a positive macroeconomic environment that was impacted by the very high inflation in costs, particularly energy costs, and more volatile prices at the end of the year. Consolidated sales were EUR 363 million for the full year 2021, an increase of 31%. EBITDA was EUR 100 million, an increase of 25%. The EBITDA margin on consolidated sales was 27.5%.
In Kazakhstan, the group recorded consolidated sales of EUR 65 million, up 14% on a like-for-like basis. This performance is the result of the group's privileging the domestic market in preference to exports. Given this favorable geographical mix, prices are up sharply. The EBITDA increased by 15% to EUR 22 million over the period. Please move to slide 14. The Mediterranean region has progressed despite a deteriorated situation at the macroeconomic and construction sector level, both in Turkey and Egypt. Given these factors, the group recorded a significant increase in its EBITDA in 2021. In Turkey, the construction market continues to recover. Consolidated sales reached one hundred fifty million euros, up 58%, and EBITDA grew to EUR 13 million from EUR 8 million in 2020, despite the 23% average depreciation of the currency.
In Egypt, consolidated sales amounted to EUR 78 million, up 62%. Conclusion of a market regulation agreement between the Egyptian government and oil producers, which came into effect in July 2021, led to a strong recovery in prices in the favorably oriented market. While this element seems to be the first sign of a long-awaited change in trend, the EBITDA generated in Egypt nevertheless remains negative by EUR 10 million over the year compared to minus EUR 19 million in 2020, and was marked by a clear improvement in the second half of the year. Please turn to page 15 for Africa. In Africa, the group continues to benefit from a favorable sectoral environment marginally affected by the regional geopolitical crisis, supported by improved performance of the Diago plant and the commercial ramp-up in Mali.
In the cement business, operational sales in the region grew by 25% on the back of a dynamic West African market. Prices in Senegal were stable. They increased in Mali and Mauritania. In Senegal, the aggregate business posted consolidated sales of EUR 30 million, up 24%, driven by the gradual recovery of major government projects in a context of well-oriented prices. I now propose to move on to the balance sheet and cash flow items on page 17. For the sake of a greater clarity, capital expenditures and free cash flows will now be presented with a distinction made between maintenance CapEx and strategic CapEx linked to the business development decisions, which can thereby be adjusted to fit cyclical trends. Maintenance CapEx represents investment made every year to maintain the technical performance of existing manufacturing base. Strategic CapEx can be broken down in two categories.
CapEx to reduce the group carbon footprint and committed to pursue the climate strategy outlined during the Capital Markets Day on November 16, 2021. Growth CapEx linked to the global project, including expanding capacity such as the new Ragland kiln in the U.S. With this distinction made, you can see evidence of the strong volume of free cash flow generation before strategic CapEx by the group. This came to EUR 295 million in 2021 compared with EUR 418 million in 2020 and EUR 234 million in 2019. Maintenance CapEx amounted to EUR 155 million in 2021 compared to EUR 129 million in 2020. The last portion of the EUR 156 million in growth CapEx committed in 2021 reflects the continuing construction of the new Ragland kiln.
Lastly, the group's CapEx to reduce the carbon footprint totaled EUR 75 million in 2021, reflecting a steady rise since 2019 as it accelerated the pace of project launch as part of the climate strategy. Please move to slide 19. No, 18, sorry. At December 31, 2021, the group maintained a solid financial structure with significant equity and controlled net debt. Consolidated equity was EUR 2.6 billion at the date, compared to EUR 2.4 billion at end 2020. Net debt stood at EUR 1.3 billion at end 2021 compared to EUR 1.2 billion at end 2020. On this basis, the group financial ratios at the end of 2021 are 2.13 for leverage and 50.6% for gearing.
Average interest rate of gross debt as of December 31, 2021 is stable at 3.1% as it is the average maturity of the debt at five years.
Thank you very much, Hugues, for your presentation. I would like now to take a look at a few recent events that have marked the group's activity. Let's start on slide 20 with an update on the construction of the new Ragland kiln in the U.S. This investment is a new 5,000 metric tons per day kiln for which construction started in 2019 in Alabama and continued in 2021. In accordance with the original plan, commissioning is scheduled for the first half of 2022. It is a project with multiple dimensions. This new kiln will provide the additional capacity needed to meet the needs of the group's market in the southeast region of the U.S. Thirdly, the technology used, which is particularly energy efficient, will reduce production cost by 30% per ton produced.
Finally, this new coal-free furnace will actively contribute to the group's targets in terms of reducing its CO₂ emissions. On slide 21, let's move on to the launch of the construction of a new kiln in Senegal. This EUR 240 million investment plan will allow the company to achieve a doubling of the plant's clinker capacity to meet the needs of the Senegal market, which is expected to grow strongly over the next few years, but also to supply clinker to its subsidiary cement grinding plants. Really a very clear improvement in the industrial performance of its entire system in Senegal, increased efficiency of which, particularly in terms of energy, will make it possible to significantly reduce production costs and eliminate clinker imports.
Finally, this new kiln will actively participate in the group's objective of reducing CO₂ emissions with the capacity to massively use alternative fuels. The new industrial facility is scheduled to come on stream in 2024. Let's move on slide 22 to the news related to our climate plan, beginning with a word about the initial and investment partnership we have concluded with the company, Haffner Energy. Indeed, the Vicat Group and the Haffner Energy Group have signed an industrial agreement coupled with the acquisition of a stake in the capital of Haffner Energy in the context of its IPO that took place yesterday. On the basis of this agreement, Vicat and Haffner Energy are combining their expertise to develop decarbonization solutions that are part of the Vicat Group's global strategy to reduce its carbon footprint.
Haffner Energy designs and provides technologies and services to produce carbon-free hydrogen. At the same time, we announced on January 12 that Vicat Group teams have developed a binder that retains all the properties and uses of traditional cement with the benefit of a carbon footprint with net emissions of less than 0 kg of CO₂ equivalent per ton. This new innovative binder is initially intended for the French market in order to meet the current and expected requirements of the new RE 2020 regulation. It should be noted that this low carbon binder will be subject to a standardization procedure, which may take several years in France, around five years, and in Europe, around 10 years. That this stage is not a prerequisite for its launch on the market when the operating and marketing authorizations are obtained.
On slide 23, I would like now to take a look at our various actions in terms of financial investment during 2021. First, the group increased its stake in Ciplan in Brazil by an additional 8%, increasing it to 74.13% at December 31. The group continued its geographical expansion strategy in the concrete and aggregate businesses, making small targeted acquisitions in France and Switzerland to cement its local network. Finally, on December 22, Vicat becomes a majority shareholder of Béton Direct, a player specializing in the sale of ready-mix concrete over the internet, targeting individuals and small businesses. The creation of this advanced e-commerce technology represents an opportunity to increase the group's position in the market for direct sales to customers in which the demand is rising.
Let's switch to slide 24, where you can see a picture of a new kiln in Ragland, Alabama, and I now propose that we move on to the outlook for 2022. Let's move to slide 25 now. In 2022, the group will keep up its investment drive, focusing chiefly on finalization of construction work at the new Ragland kiln in the U.S., start of construction work on the new kiln in Senegal, in Rufisque, close to Dakar, the ramp-up of projects to meet carbon footprint reduction targets, the drive to incrementally boost capacity at production facilities in India, and to invest in new terminals to expand its market and lower logistics costs, and especially terminal in Coimbatore in Tamil Nadu.
Accordingly, capital expenditure is expected to be higher than in 2021 at around EUR 400 million, including EUR 130 million in maintenance investments and EUR 270 million in strategic investments. Of course, the group reserves the right to adjust its investment plan by reducing, if necessary, the proportion of its growth CapEx to match the shifting trends in its markets and its cash flow generation. On slide 26, in conclusion on our outlook for the current financial year, the group will be supported by the macroeconomic and sector environment that is expected to remain broadly favorable with an anticipated price hike that would help offset the steep rise in energy costs, currently estimated at around +30%. Even though strong seasonal effects are likely to be a factor during the year.
Overall, the group anticipates another increase in its activity levels in 2022, as the EBITDA generated by the group in 2022 is likely to grow, but not by as much as in 2021. You can find details of the expected trends by country in our press release, which was published last night. Ladies and gentlemen, we thank you for your attention. Dan, we can now move to questions.
Absolutely. Ladies and gentlemen, if you do wish to ask a question, please press star one on your telephone keypad to enter the queue at any time. Please also ensure that your device is unmuted locally so that I may call your name and advise when to ask your question. Once again, star one on your telephone keypad if you have a question now. Okay, no questions on the line just yet. Again, ladies and gentlemen, star one on your telephone keypad if you do wish to ask a question. That's star one.
If we have no questions, this concludes our-
Pardon me, we do have one now.
Oh, sorry.
We just got a question on the line. The first question will come from Pierre de Fraguier of Goldman Sachs. Pierre, when you are ready, please go ahead with your question. Your line is now open.
Hi. Thank you very much. Good afternoon, gentlemen, and thanks for taking my question. Regarding the 30% energy inflation you're seeing for 2022, what gives you the confidence that inflation is gonna be 30%? Have you already locked in some of the energy consumption for 2022 and to what extent?
Good afternoon, Pierre. Thank you for the question. Well, of course, as you know, we are going ahead with both inventories and hedges that cover out to the year. So we are able to cover a large part of the year. The 30% inflation assumption is that everything that is not covered today will stay at current levels.
Great. Thank you very much.
You're welcome.
One last reminder, ladies and gentlemen, star one if you do wish to get a question in now. That is star one. It appears that will be all the questions for today. I'll turn it back to your host for any closing remarks.
Thank you. Thank you, Dan. There are no more questions, so this concludes our call for today. I'd like to thank you again for your interest in Vicat and wish you all a very nice day. Goodbye.
Thank you all for joining today's conference. You may now disconnect your lines.