Cementir records strong regional results in 2021

Cementir records strong regional results in 2021
11 March 2022

Cementir's regional markets results for 2021 produced increasing revenues in all markets. The highest revenues outside of Italy were recorded in Belgium and France.

Norway and Sweden
In 2021 sales revenues in Norway and Sweden amounted to EUR193.6m (EUR176.4m in 2020) while EBITDA recorded 22 per cent growth to EUR 21.2m (EUR 17.4m in 2020). 

In Norway ready-mixed concrete sales volumes increased by around four per cent compared to the previous year with a more favourable trend in the south of the country. Prices in local currency were in line with the previous year. EBITDA increased due to higher sales volumes and lower variable costs for raw materials purchase.

In Sweden ready-mixed concrete volumes slightly increased compared to the previous year, while aggregate sales were marginally down in line with market trends, with average prices in local currency for ready-mixed concrete and aggregates showing growth also favoured by product mix. EBITDA improved in both ready-mixed concrete and aggregates, mainly due to higher selling prices in both segments and despite inflationary dynamics on cement and raw material purchase costs and higher fixed costs.  

Belgium and France
Ready-mixed concrete sales volumes in Belgium and France increased by around 16 per cent in 2021, thanks in part to the start-up of a number of major infrastructure projects and the full operational start-up of a new plant in France. Sales prices are rising in both Belgium and France. 

Aggregates sales volumes increased by around four per cent compared to 2020, due to strong performance in both the local market and France. Sales prices performed just below inflation in the domestic market, due to the mix of product, customer and destination.

Overall in 2021, sales revenue totalled EUR274.9m (EUR253.2m in 2020) and EBITDA reached EUR68.6m (EUR61.2m in the previous year) up by 12 per cent.

North America
The three per cent growth in white cement sales volumes in 2021 reflects the negative impact in 2020 of the spread of COVID-19. Overall in the USA, sales revenues amounted to EUR155.5m (EUR153m in 2020) while EBITDA increased by 11.9 per cent to EUR23.8m (EUR21.3m in 2020), as a result of higher sales volumes and prices partly offset by higher fuel and electricity costs.

Sales volumes in the domestic market grew due to increased demand, particularly in the Izmir and Trakya areas, positive weather conditions and a decline in sales in 2020 due to the pandemic. Significant increases were recorded in eastern Anatolia (Elazig), which was hit by an earthquake in January 2020, and in the Aegean area, due to the Samos-Izmir earthquake in October 2020, where many buildings were damaged or destroyed. The European region of Turkey, where the Trakya plant is located, grew at a sustained pace driven by the residential and infrastructure sectors. The opening of new ready-mixed concrete plants in the Trakya and Elazig areas further boosted business growth.

Ready-mixed concrete volumes increased by almost 30 per cent compared to 2020, thanks to the start of some postponed infrastructure projects and the opening of two new plants in April. Ready-mixed concrete prices in local currency developed in line with cement prices.

Overall, Turkey's revenue reached EUR173.3m an increase of 22.2 per cent compared to the previous year (EUR141.8m).

Sales revenue reached EUR50.7m (EUR43.4m in 2020), up by 17 per cent. On the other hand, the increase in revenues in local currency was 20.5 per cent due to the growth of approximately 16 per cent in volumes sold in both the domestic and export markets. 

Compared to 2020, a year that was negatively affected by COVID-19, white cement sales volumes in the domestic market increased by eight per cent, while exports grew by over 20 per cent. EBITDA increased by 10.6 per cent to EUR10.8m (EUR9.8m in 2020), due to higher volumes sold and higher sales prices against higher fuel and other fixed costs due to inflation.  

Sales revenues in China reached EUR63m (EUR54.9m in 2020), an increase of 14.7 per cent due to a more favourable sales mix. EBITDA increased by 21.5 per cent to EUR20.8m (EUR17.1m in 2020), driven by higher sales prices partially offset by higher raw materials and fuel costs. 

Sales revenue amounted to EUR45.1m (EUR40m in the previous year), up 12.9 per cent thanks to an increase in sales volumes, mainly to foreign markets, while domestic volumes grew by 2.5 per cent compared to the previous year. Exported volumes of both cement and clinker increased by about 10 per cent compared to 2020, partially due to import restrictions implemented by several countries in 2020. EBITDA reached EUR 6.1m, down 11 per cent from EUR6.8m in 2020, mainly due to higher fuel purchase costs and higher transport costs on exports.

For 2022, the group confirms the objectives announced on 8 February 2022, namely to achieve consolidated revenues of over EUR1.5bn, EBITDA between EUR305m-315m and a net cash position of approximately EUR60m at the end of the period, after EUR95m of investments.

Published under Cement News