Titan Group's 1H20 revenues stable at EUR786m
Titan Group consolidated revenue in the 1H20 amounted to EUR786.3m, remaining largely stable (+0.1 per cent) over the same period the previous year. Group cement and cementitious volumes reached 7.9Mt in the 1H20, down two per cent from 8.1Mt in the 1H19. Ready-mix sales edged up 1.3 per cent YoY to 2.64Mm3 from 2.6Mm3 in 1H19, while aggregate volumes totalled 9.2Mt, up 2.6 per cent from 8.9Mt in 1H19.
EBITDA was up 12 per cent YoY, reaching EUR136.8m, while the group's EBITDA margin reached 17.4 per cent from 15.6 per cent in the first half of 2019. Net profit after taxes and minorities (NPAT) grew by EUR9m to EUR22.4m.
Regional performance
USA
Revenues for Titan America in the 1H20 totalled EUR4765.5m, up 0.8 per cent from EUR471.8m in 1H19. Operations continued uninterrupted despite a slowdown in demand in the second quarter. EBITDA reached EUR87.1m, growing by 3.5 per cent, with the EBITDA margin rising to 18.3 per cent in the first half. Lockdown measures were more pronounced during April on the company’s import terminal Essex, which supplies the New York Metro area. By May-June, volumes in the company's US markets caught up with pent-up demand, ending on a solid note in June. Titan invested in the conversion of its cement plants from solid fuels to natural gas. The Roanoke plant in Virginia is currently running at about 90 per cent natural gas.
Greece and western Europe
In Greece the year started off better than 2019 but came to an abrupt halt when the epidemic struck and subsequent lockdown measures were imposed in mid-March. Total consolidated revenue for region Greece and western Europe in the first six months of the year reached EUR113.7m, recording a -7.8 per cent YoY decline, and EBITDA reached EUR8.2m, posting a -16.4 per cent YoY drop.
Southern Europe
Titan reports that following the easing of strict lockdown measures, demand bounced back in May and June, supported by the region's solid underlying trends. Revenue in the 1H20 posted a 3.9 per cent decrease to EUR115.9m, while the combination of a positive pricing environment and lower production costs, resulted in a 19 per cent increase in EBITDA to EUR39.1m, compared to the first six months of 2019, when it stood at EUR32.9m.
Eastern Mediterranean
After posting a healthy growth rate of 4.4 per cent in the 1Q20, market demand in Egypt declined sharply in 2Q20 as the epidemic set in, affecting business and bringing total cement consumption for the first six months at -3.3 per cent versus the same period the previous year. Total revenue in the eastern Mediterranean region increased by 16.4 per cent in the 1H20 to EUR81.1m from EUR69.7m in the 1H19, while EBITDA for the 1H20, closed at EUR2.3m compared to -4.7m in the 1H19.
Brazil
The market had a strong start to the year with increased sales volumes, followed by a slowdown due to strict lockdown measures and then a sales rebound recorded in May and June. Revenue, in local currency, therefore increased while the reduction in fuel costs also resulted in improved profitability for the six-month period for our joint-venture Apodi. Recorded in euro terms, however, both revenue and EBITDA declined due to the devaluation of the BRL.
2Q20 results
In the second quarter of 2020, group consolidated revenue reached EUR401.5m, a five per cent decrease over the second quarter of 2019. EBITDA grew across all regions, except Greece and Western Europe, reaching EUR96.2m and posting a 23.6 per cent increase compared to 2Q19.
