Cementos Bio Bio (CBB) reported a sharp decline in earnings and revenues for 1H25, just one week before the close of a takeover bid by Belgian industrial minerals group Carmeuse.
The Chilean cement and lime producer posted net income of CLP12,182m (US$12.58m), a 30.3 per cent fall from the previous year. The company attributed the decline to lower operating profits, reduced other income, higher administrative costs, and weaker exchange differences.
Ebitda dropped seven per cent year-on-year to CLP37,418m, hit by falling concrete dispatches following the end of key supply contracts, increased expenses from higher mining patent rates, and reduced non-operating income. Segment results showed contrasting trends: cement swung to a CLP216m loss from a CLP7704m profit a year earlier, lime earnings fell nearly 12 per cent to CLP15,554m, and the “others” category plunged 41.5 per cent to CLP10,807m.
The company said the results reflected ongoing weakness in Chile’s construction sector, which in 2024 endured one of its deepest crises in three decades amid higher material costs, tighter credit conditions, and low investor confidence. While a modest recovery is expected in 2025, cement dispatches have risen only slightly, and concrete sales remain below last year’s levels due to the completion of major projects.
The earnings release comes days before Carmeuse’s CLP505m takeover bid for 100 per cent of CBB, launched on August 13 at US$1911 per share, expires on 11 September. The offer requires at least 66.7 per cent of shares to be tendered.
As of 2 September, 7.8m shares — equivalent to 2.94 per cent of capital — had accepted the offer. However, controlling shareholders, including Inversiones Cementeras, Inversiones La Tirana, Normex, Inversiones Toledo and Tralcan, who together hold 64.6 per cent, have already agreed to sell to Carmeuse. Shares of CBB are up 13 per year-to-date.
