Cementir reduces debt but also net profit

Cementir Holding's turnover in 2015 recovered by 2.2 per cent to EUR969.0m, but EBITDA emerged just 0.8 per cent ahead at EUR194m. The trading profit, however, declined by 6.3 per cent to EUR97.61m while the net interest line went from a negative EUR4.6m to a positive EUR4.0m and the pretax profit improved by 2.2 per cent to EUR101.6m. Higher tax and minorities charges gave a net attributable profit 5.8 per cent lower at EUR67.5m.

Net debt at the end of 2015 was 20.2 per cent lower at EUR222.1m, giving a modest gearing level of 21.2 per cent as shareholders’ funds edged ahead by 0.5 per cent.

Capital investment in the year declined by 7.1 per cent to EUR61.3m, of which EUR46.5m was in the cement business, including EUR13.2m for petcoke facilities in Egypt. The ready-mixed concrete activities made capital investments amounting to EUR9.2m and in the case of waste management the investment amounted to EUR3.2m. Capital expenditure in 2016 is expected to be in the range of EUR65-70m.

There was a 0.7 per cent reduction in the number of employees to 3032, but the wages bill did increase by 1.4 per cent to EUR149.7m.

Performance by region
The group increased turnover in the Nordic countries, Italy, Egypt and Malaysia but saw reductions in Turkey and in China. Group shipments of grey and white cement declined by two per cent to 9.37Mt. Aggregates shipments advanced by 17 per cent to 3.83Mt and ready-mixed concrete deliveries improved by 7.3 per cent to 3.75Mm³. Ready-mixed concrete deliveries increased by 14.7 per cent in Denmark, but there was a 9.1 per cent reduction in Norway.

Turnover in Denmark improved by around 10 per cent with both housebuilding and civil engineering activity increasing. In Denmark cement deliveries increased by 7.5 per cent. There was an increase in Swedish turnover of some 28 per cent thanks to increased construction activity in the Malmö region. There was a 5.5 per cent reduction in Norway on top of which the Norwegian currency lost 7.2 per cent of its value against the euro. The Italian turnover improved by 3.1 per cent thanks to higher volumes in both cement and concrete, though prices were a little weaker. The British waste management operations performed in line with the previous year.

In Turkey turnover in local currency declined by 2.6 per cent on top of which the Turkish currency lost 4.2 per cent against the euro. Weaker domestic and export sales led to a 10.7 per cent reduction in the volume of cement sold, but the turnover in waste management showed a slight increase. Egyptian operations saw a 10.7 per cent reduction in cement shipments as demand weakened both in domestic and export markets. Turnover declined by 2.6 per cent in local currency, but the Egyptian pound strengthened against the euro by 9.8 per cent. In Malaysia turnover in local currency grew by 32 per cent as cement and clinker volume was expanded by 58.3 per cent as the increased capacity came on-stream. Chinese turnover declined by 5.2 per cent, but thanks to a 14.7 per cent increase in the Chinese currency against the euro the consolidated turnover was ahead. Domestic cement deliveries declined by there was a partial compensation from higher export volumes.  

Guidance
For 2016 the group expects to achieve EBITDA of around EUR190m, with higher cement volumes in the Nordic area, Egypt and Malaysia and higher ready-mixed concrete volumes in Italy and Turkey. Cementir also hops to acquire the cement, ready-mixed concrete and transport activities of Sacci SpA, provided the creditors agree and the court approves.