Cimpor nine-month profit rises

Cimpor nine-month profit rises
Published: 09 November 2011

Cimpor’s turnover rose by 3.6% to €1,741.8m in the first nine months, boosted by operations in Mozambique, Turkey and Brazil. EBITDA edged up by just 0.9% to €479.21m. Somewhat lower depreciation and amortisation charges allowed the trading profit (EBIT) to advance by 2.2% to €305.4m. After a higher minorities charge, the net attributable profit was 6.1% higher at €180.1m. Net debt at the end of September was 1.9% lower than a year earlier at €1,627m, giving a gearing level of 81.2%, compared with 78.8% a year earlier.

Group cement and clinker shipments were 2.5% lower at 20.8Mt, as volume reductions of almost 20% in Portugal and of in excess of 15% in Spain and in Egypt, could not fully be recovered by increases elsewhere, notably in Brazil and Turkey.

The Portuguese turnover declined by 13.0% to €298.8m and the EBITDA fell by 23.7% to €84.1m, to account for 17.6% of the group total. Cement and clinker sales fell by 19.8% to 2.90Mt in response to weaker domestic demand and reduced clinker exports to Egypt. As a proportion of the group’s cement volume, Portugal’s share fell from 16.2% to 13.6%. In Spain, Cimpor’s cement volumes declined by 15.5% to 1.89Mt. Spanish turnover was down by 8.2% to €195.8m, but the EBITDA did recover by 10.7%, after the previous year’s 32.1% drop, to reach €26.1m.  

Brazil further increased its lead as the largest contributor to cement volume, turnover and profit. The cement output in Brazil accounted for 20% of the group’s total. Brazilian cement volumes increased by 7.4% to 4.3Mt and imports are continuing to be needed until capacity increases can satisfy the growing demand. Turnover in Brazil rose by 18.1% to €526m, helped by higher prices and growth in the concrete business. EBITDA improved by 15.6% to €165.7m, boosted also by a stronger currency. 

While Egypt remains the fourth biggest contributor to in terms of cement volume and joint fourth in turnover, it is likely to lose both these positions to Turkey when the full year’s results are published.  The Egyptian turnover fell by 29.1% to €127.1m as cement deliveries declined by 15.4% to 2.42Mt and prices weakened in an increasingly competitive environment.  The EBITDA dropped by 41.3% to €40.3m. In Morocco, cement deliveries improved by 4.0% to 0.91Mt.  The turnover advanced by 3.44% to €75.5m, but the EBITDA came off by 11.4% to €29.2m as a result of increased competition as a new competitor entered the market. Tunisian cement volumes were off by 0.1% to 1.32Mt, but the turnover improved by 8.1% to €63.6m though the EBITDA was just 2.0% higher at €18.2m.

Turkey continued to show good growth, with volumes advancing 8.7% to 2.32Mt and the EBITDA forged ahead by a further 34.8% to €23.8m on a turnover that improved by 15.0% to €127.1m.

South African cement shipments improved by 5.7% 0.94Mt, but there was some pressure on prices as the company tried to keep imports at bay.  Turnover improved by 2.9% to €114.9m, with EBITDA easing 1.8% to €45.2m, though improving in the third quarter. In Mozambique, cement volumes improved by 7.8% to 0.7Mt, the second best growth rate after Turkey. The EBITDA jumped by 84.8% to €14.2m on a turnover that rose by 23.6% to €81.1m.  The business on the Cape Verde Islands saw cement shipments ease by 1.5% to 182,000t, but the turnover improved by 6.1% to €25.8m and the EBITDA rose by 25.9% to €3.7m.   

In China, cement declined by 4.2% to 2.80Mt, though the turnover improved by 38.8% to €92.2m.  The EBITDA went from a €2.4m loss to a profit of €21.1m, in spite of higher energy costs. Indian cement deliveries improved by 3.2% to 0.69Mt, with prices being some 12% higher than 12 months earlier.  Competitive pressures have increased and energy costs are considerably higher.