West China Cement reported a 15 per cent YoY increase in full-year EBITDA to RMB3bn (US$420m), although the result fell below market expectations. EBITDA margin declined by 40 basis points to 31.3 per cent.
Cement and clinker volumes rose nine per cent to 21.8Mt, driven by strong growth in overseas markets, where volumes more than doubled. Output increased significantly in Ethiopia and Uzbekistan, offsetting a 19 per cent decline in volumes in China.
The company’s overseas expansion continued to underpin earnings, with international markets accounting for the majority of gross profit. Growth in Ethiopia was supported by the commissioning of the Lemi National Cement plant in September 2024. However, increased volumes in the country were accompanied by lower average selling prices, resulting in reduced margins.
Overall gross profit per tonne increased 4.5 per cent to RMB92, reflecting a mixed pricing environment across markets.
West China Cement also reported an improvement in leverage, with net debt-to-EBITDA declining to 3.5x from 3.9x in the previous year, supported by higher earnings.
Despite the positive contribution from overseas operations, the company reported weaker performance in the second half of the year, with EBITDA declining YoY, highlighting increasing earnings volatility linked to its growing exposure to international markets.
