Titan Group announces 1H23 consolidated sales of EUR1229m

Titan Group’s consolidated sales for the H123 surpassed the EUR1.2bn (US$1.335bn) level, reaching EUR1229m, increased by 18.7 per cent versus the 1H22. EBITDA increased to EUR241.2m compared with EUR136.3m in the 1H22, an increase of 77 per cent, with profitability margins expanding, as investments implemented during the last two years are progressively improving cost performance. 

Group EBITDA over the past 12-month period (July 2022-June 2023) reached EUR436m. Net profit after taxes and minority interests (NPAT) in the first six months of 2023 more than doubled to EUR110.9m compared to the EUR45.2m of the first six months of 2022.

Trends and economic conditions in the US regions in which Titan operates remain favourable to construction, resulting in improved demand and pricing levels. In Greece demand continues to rise, while market trends in southeastern Europe remain positive year-to-date. Domestic demand has been increasing significantly in Turkey, while volumes have been softening in Egypt. Volume trends across all main product lines testify to healthy demand, as domestic cement sales volumes increased by three per cent, aggregates and ready-mix increased by six and  three per cent respectively, YoY. 

Marcel Cobuz, chairman of Group Executive Committee said: “An excellent first half of the year with strong pricing over costs and increased percentage of low carbon sales reaching 25 per cent in infrastructure and building projects across the Group. We are well on track for a record year of growth and an accelerated roadmap of decarbonisation and digitalisation”. 

Regional sales
Sales in the USA recorded a 24.5 per cent increase to EUR735.5m during the first six months of 2023 (23.3 per cent increase in US$ terms), while EBITDA reached EUR135.5m, a 115.3 per cent hike vs the 1H22 EBITDA of EUR63m. 

Mainly as a result of increased demand levels, total sales for the region of Greece and Western Europe in the 1H23 grew by 21.3 per cent to EUR197.3m compared to EUR162.7m in 1H22, while the EBITDA increased by EUR16.4m, reaching EUr36.3m.  

Sales for southeastern Europe as a whole, in the first semester of 2023 increased by 15.7 per cent to EUR195.1m, while EBITDA increased by 37 per cent to EUR60m. 

Total sales in the eastern Mediterranean reached EUR101m in the first half of 2023, dropping by 10.7 per cent (however recording a 45 per cent increase in local currencies) year on year, while albeit the improvement of the energy mix, EBITDA reached EUR9.3m versus EUR9.6m, in the 1H22. 

Cement consumption in Brazil declined by 1.6 per cent in the first six months of the year compared to the same period in 2022. The joint venture, Apodi Cement posted increased sales of EUR59.7m, versus EUR50.5m in the first half of 2022, while the EBITDA increased to EUR6m versus EUR3.6m in the same period in 2022.  

Outlook
Global economic conditions started improving, helped by softer energy prices and the attendant improving business and consumer sentiment. "However, the upturn remains fragile with the effects of tighter monetary policy increasingly being felt," says Titan. "Inflation could prove more persistent and the impact of higher interest rates on financial markets and economic activity could continue taking a toll on investment confidence."