Cementir benefits from acquisitions

Cementir benefits from acquisitions
12 May 2017

Cementir's first-quarter turnover rose by 33 per cent to EUR279.9m while on a like-for-like basis the improvement was just 0.5 per cent. EBITDA improved by 7.9 per cent to EUR23m, with only the Nordic countries showing an improvement. At the trading level there was a reduction from a EUR1.2m, profit to a EUR1m loss and at the pretax level the loss increased by 2.8 per cent to EUR6.2m.

Net debt at the end of March was EUR646.4m compared with the EUR271.9m a year earlier to give a gearing level of 62.7 per cent compared with 24.7 per cent a year earlier. 

Shipments of grey and white cement rose by 24.9 per cent to 2.52Mt and ready-mixed concrete deliveries were 19.4 per cent higher at 1.09Mm³ while dispatches of aggregates jumped by 187.3 per cent to 2.01Mt.

The Nordic and Benelux turnover jumped by 64.1 per cent to EUR185.8m, mainly thanks the inclusion of the Belgian-based CCB. CCB contributed a turnover of EUR53.4m and an EBITDA of EUR5m. In Denmark turnover improved by 9.3 per cent as domestic deliveries advanced by 16 per cent in grey and by four per cent in white cement. In ready-mixed concrete volumes improved by 12 per cent, while exports of white cement ware off by nine per cent with exports of grey cement to the USA being stable. In Norway ready-mixed concrete deliveries advanced by 26 per cent while in Sweden deliveries rose by 31per cent in ready-mixed concrete and by 25 per cent in aggregates.

The Italian turnover benefited from the consolidation of Sacci and rose by 88.1 per cent to EUR37.4m, resulting in an EBITDA loss 2.3 per cent lower at EUR5m, with Cementir Sacci making a negative contribution of EUR2.1m. Sales volumes in cement and concrete were two per cent ahead of the comparative volumes last year, helped by a good performance of the Spoleto works.

In Turkey an uncertain political situation and adverse weather conditions as well as exchange rate movements combined to lead to a 32.4 per cent reduction in turnover to EUR32.4m, as cement deliveries declined by 16 per cent and ready-mixed concrete deliveries dropped by 25 per cent. Export volumes showed a 34 per cent reduction. Egyptian turnover declined be 24.3 per cent was the exchange rate declined, with white cement and clinker volumes declining by two per cent in the domestic market, but exports increased by 16 per cent. EBITDA amounted to EUR0.3m in respect of Turkey and EUR4.4m for Egypt.

In Malaysia volumes declined by some five per cent for domestic deliveries and fell by around 39 per cent in the case of exports, leading to reductions in turnover at EUR9.1m and of EBITDA to EUR2m. In China the turnover increased from EUR7.4m to EUR9.2m while EBITDA jumped from EUR0.9m to EUR1.7m.

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Tagged Under: Cementir Italy business results