Vassiliko Cement Works Pcl (CVW), Cyprus’ leading cement producer and exporter reported a 22.6 per cent jump in net profits during the first quarter to EUR 3.98m from EUR 3.24m in the same period in 2006 on the back of higher sales to the booming construction sector as well as its success in restricting cost increases.
Total turnover was up 10% to EUR 22.24m (CYP 12.9m) from EUR 20.19m a year ago as local cement and clinker sales reached 331,000t, up 19.5% compared to 277,000t a year ago.
Local sales during the first quarter of 2007 were 12.4% higher at 437,000t, compared to 389,000t a year earlier with cement sales in April galloping at a 15.4% YoY rate.
Exports of cement and clinker declined to 23,000t from 81,000t a year ago as Vassiliko shifted production to satisfy the local market needs.
This helped improve the gross profit margin to 26.6% in 1Q07 from 26.3% in 1Q06 with gross profit at EUR 5.9m from EUR5.3m. The ability of Vassiliko to restrict cost increases, despite intense pressure on petcoke prices was instrumental in boosting profits. Nevertheless, Management said it is looking into alternatives to contain its costs.
Operating profits were up 19.6% YoY to EUR 4.29m from EUR3.58m and with finance income climbing to EUR 208,000 from EUR 46,000, net profit attributable to shareholders amounted to EUR 3.98m in 1Q07 from EUR 3.2m in 1Q06.