Semapa SGPS said sales grew four per cent to EUR1.547bn last year from a restated EUR1.490bn in 2005 as weak sales at its Secil cement division offset firmer ones at its Portucel - Empresa Produtora de Pasta e Papel SA unit.
In a statement, Semapa said Secil’s revenue grew just one per cent due to the weak domestic construction sector in Portugal, where sales fell one per cent while volumes sold increased two per cent.
Weakness in the domestic cement market is expected to continue over 2007, Semapa said, but noted that its outlook for sales in Lebanon and Angola are more positive due to reconstruction work in those countries.
The group’s results were weighed down by holding company costs, which had a negative impact of EUR23.2m on profit.
Group EBITDA dropped 37 per cent to EUR443.6m, due to lack of one-time gains from the sale of its Enersis unit in 2006, while net profit shed 73 per cent to EUR91.4m.
Net debt grew 11 per cent to EUR1.086bn.