Cimpor - February 2014

On a comparative basis, Cimpor's turnover increased by 25.5 per cent last year to EUR2624.5m and the EBITDA rose by 45.5 per cent to EUR691.8m. The trading profit emerged at EUR487.0m compared with a loss of EUR7.2m in the previous year on an integrated basis, or a EUR305.8m proforma profit on a restated basis, or a 59.3 per cent increase. The net financial charge, on an integrated basis, rose by 23.2 per cent to EUR406.9m, giving a pretax profit of EUR80.1m and at the net attributable level there was a loss of EUR19.4m. Net debt at the end of 2012 stood at EUR3434m compared with EUR3183m a year earlier, while shareholders' funds declined from EUR1457m to EUR947m.

The group cement and clinker volume sold in the year amounted to 28.39Mt and, because of the additional businesses in Argentina and Brazil, are not comparable with the 14.41Mt shown for 2012. Brazil represented 42.9 per cent of the consolidated cement volume, compared with 22.8 per cent for Argentina, 14.5 per cent for Portugal, 10.9 per cent for Egypt and 4.4 per cent each for Mozambique and for South Africa.

Brazil's position as the largest market for the group has been reinforced by the addition of Camargo Corrêa, which is now Cimpor's parent, making Cimpor the second-largest cement producer in Brazil. Cement and clinker sales rose by 113.3 per cent to 12.53Mt and the clinker capacity utilisation rate improved from 90.8 to 91.2 per cent. Cimpor continues to expand and capital expenditure amounted to EUR224.5m, which included spending on a new cement works at Caxitu, a new production line at Cezarina and the completion of the milling project at Cubatão. Aggregates sales jumped by 199.1 per cent to 2.4Mt while ready-mixed concrete deliveries advanced by 54 per cent to 2.76Mm³, though sales of mortar did decline by 14.1 per cent to 0.2Mt.

Argentina's Loma Negra was consolidated for the first time and contributed a turnover, including Paraguay, of EUR651.5m. Argentinean cement shipments amounted to 6.38Mt, a record volume, giving it a market share of 46.1 per cent, as Argentine cement consumption rose by some 12 per cent. Loma Negra's capacity stands at 8.5Mta at six integrated works and two grinding centres. Shipments of aggregates were slightly lower at 1.11Mt, but a good increase in the EBITDA was achieved nonetheless. Deliveries of ready-mixed concrete rose by 7.2 per cent to 0.73Mm³. Capital investment in the year in Argentina amounted to EUR34.8m.

Yguazu Cementos in Paraguay relied on imported cement, primarily from Portugal, until its 0.4Mta grinding centre went on-stream during the second half of the year. The volume sold by Yguazu Cementos amounted to 0.28Mt, generating a turnover of EUR38.4m.

The Portuguese turnover declined by 8.7 per cent to EUR283.5m in a weak market, where domestic deliveries fell by 24 per cent to some 1.5Mt. Helped by a 75 per cent growth in exports, total cement and clinker shipments, however, did rise by 18 per cent to 4.05Mt. Most of the cement exported went to Africa and to Latin America. While aggregates sales did improve by 5.9 per cent to 4.2Mt, ready-mixed concrete deliveries declined by 15.5 per cent to 0.97Mm³ and mortar sales dropped by 36.3 per cent to just 45,000t. The EBITDA fell by 59 per cent to just over EUR30m, as proceeds from the sale of emission credits dropped by EUR27m and restructuring costs of about EUR21m were incurred.

In Egypt, Amreyah managed to increase turnover by 1.5 per cent to EUR180.8m and to increase cement and clinker shipments by 2.8 per cent to 3.20Mt in a market that was off by around two per cent. In Mozambique, turnover grew by 5.4 per cent to EUR141.9m as cement deliveries improved by 9.8 per cent to 1.3Mt and ready-mixed concrete deliveries rose by 49.8 per cent to 172,000Mm³. South Africa produced a turnover 6.3 per cent lower at EUR125.2m and the EBITDA dropped by a quarter as the currency weakened. Cement shipments, however, rose by 19.8 per cent to 1.28Mt, gaining share in market that up by a more modest 6.4 per cent. Aggregates shipments declined by 10 per cent to 0.5Mt, but ready-mixed concrete deliveries rose by 32.5 per cent to 0.18Mm³. The Cape Verde operations experienced a 12.2 per cent reduction in turnover to EUR24m and sold 6.9 per cent less cement at 176,000t, but aggregates and concrete volumes dropped by 68.9 per cent and 65.6 per cent, respectively. However, thanks to improved transport economics, the EBITDA did improve by four per cent to EUR3.4m.