Cimpor African results improve 9M14
Cimpor's nine-month turnover declined by 1.6 per cent to EUR1952.2m and the EBITDA was off by 4.2 per cent to EUR461.1m as the Brazilian, Argentine and South African currencies declined by 10 per cent, 36 per cent and 14 per cent, respectively. South America generated 69.1 per cent of the EBITDA in the nine months compared with 79.5 per cent a year earlier. The trading profit (EBIT) came down by 2.6 per cent to EUR321.5m and the net financial charges declined by 1.2 per cent to EUR287.1m, to give a pretax profit 12.7 per cent lower at EUR34.4m. The tax charge was 16.2 per cent lower at EUR47.1m. The net attributable loss was 1.3 per cent lower at EUR17.7m. Net debt at the end of September stood at EUR3668m, giving a gearing level of 4.04 times shareholders' funds.
Group cement and clinker shipments increased by 8.2 per cent to 22.75Mt.
The Portuguese turnover declined by 1.7 per cent to EUR212.4m while cement and clinker sales increased by 11.6 per cent to 3.44Mt, but domestic deliveries fell yet again. In excess of 65 per cent of the group's Portuguese cement and clinker shipments were exported. Portugal's share of the group's cement volume was 14.8 per cent compared with 15.4 per cent a year ago. The Cape Verde Islands sold 0.6 per cent more cement at 0.14Mt, with the turnover being 10.7 per cent higher at EUR20.7m. The Portuguese and Cape Verde EBIDA improved by 13.4 per cent to EUR21m.
The Brazilian turnover declined by five per cent to EUR895.5m and remains by far the largest contributor in spite of a further currency devaluation and the EBITDA fell by 23 per cent to EUR234.1m. The cement output in Brazil increased by 3.3 per cent to 9.65Mt, or 42.4 per cent of the group total, though in the third quarter there was a one per cent reduction. In local currency, the turnover improved by 5.7 per cent and there was EUR30.7m adverse exchange rate effect.
Argentina, which also includes Paraguay, is the second-largest source of turnover, contributing EUR384.8m, or 17.4 per cent of the group total, a 16.2 per cent decline, while the EBITDA did improve by 7.4 per cent to EUR84.6 per cent. Cement shipments dropped by 3.9 per cent to 4.51Mt in the period and the group subsidiary Loma Negra is the Argentinean market leader. Cimpor started grinding operations in Paraguay last year and a total of 0.29Mt were sold in the year to date, a 43.9 per cent increase.
Egypt is now the fourth-biggest contributor in terms of both cement volume and turnover. The Egyptian turnover increased by 39.1 per cent to EUR185.3m. The group's Egyptian cement deliveries increased by 22.6 per cent to 2.88Mt. South African cement deliveries rose by 21.5 per cent 1.16Mt, as the company diversified its product range and expanded its base of large clients. On conversion, however, the turnover declined by 0.9 per cent to EUR94.6m as the rand fell by 20.9 per cent against the euro. In Mozambique, cement volumes advanced by a further 20.4 per cent to 1.12Mt and the turnover was ahead by 4.5 to EUR108. The EBITDA from Africa jumped by 24.2 per cent to EUR108.6m.
