Titan - May 2019

Titan's first-quarter turnover improved by 12.5 per cent to EUR362.7m and EBITDA advanced by 1.9 per cent to EUR44.3m. After a EUR15m (EUR14m) net financial charge and exchange rate movements, there was a pretax loss of EUR8.7m compared with a pretax profit of EUR2.6m a year ago. After tax and minorities there was a loss of EUR6.2m, compared with a EUR0.9m profit for the comparable period last year. Net debt at the end of March was higher at EUR889m, an increase of EUR117m, of which EUR59m was related to the introduction of IFRFS 16 from this year. This gives a gearing level of 63.9 per cent, compared with 58 per cent a year earlier and 54.8 per cent the year before.

Group cement shipments declined by 10 per cent to 3.7Mt, while aggregates deliveries improved by seven per cent to 4.4Mt. Ready-mixed concrete deliveries were stable at 1.26Mm³.

Turnover in Greece and the rest of western Europe recovered by six per cent to EUR56.1m from an exceptionally-low level, but remains subdued. However, the Greek domestic turnover suffered from continued delays in both public sector and private sector construction projects as well as from a decrease in maintenance projects in the period. Private residential building activity remains at low levels. As a result, EBITDA loss increased from EUR0.8m to EUR1m.  

Turnover in the rest of southeastern Europe showed growth and advanced by 41.4 per cent to EUR48.4m from the previous year’s exceptionally-low level. The profit level more than doubled from EUR3.9m to EUR9.1m. EBITDA is expected to continue to grow for the remainder of the year, helped by further infrastructure investments.

In the USA turnover improved by 17.5 per cent to EUR223.9m and EBITDA rose by 41.8 per cent to EUR41.2m.

The demand was higher in all of Titan’s American markets and the US dollar strengthened against the euro. Housebuilding remains the main driver of cement demand in the regions served by Titan and both short- and medium-term prospects remain encouraging.

Turnover in the eastern Mediterranean area, which is effectively Egypt, declined by 23.5 per cent to EUR34.2m. EBITDA went from a EUR8.4m profit to a loss of EUR5.2m, reflecting additional capacity in the market and higher input costs. The equity-accounted joint venture in Turkey saw an increased loss of  in the period as demand declined. The outlook remains very challenging for both Egypt and Turkey.

The equally equity-accounted joint venture in Brazil saw a 1.2 per cent volume recovery in the markets where it operates, following four years of decline.