Cementir - September 2019

In the first half of 2019, Cementir Holding SpA reported revenue from sales and services of EUR591m, down 0.6 per cent on the same period last year. EBITDA advanced by 14.7 per cent YoY to EUR110m, while the EBITDA margin increased from 16.31 per cent in the 1H18 to 18.59 per cent in the 1H19. Over the six-month period, volumes of cement and clinker sold, including white cement, came in at 4.3Mt, a contraction of 12.2 per cent YoY. This was mainly due to the negative trend in Turkey, partially offset by a more favourable trend in the Nordic and Baltic region, and in Belgium.

The volumes of grey cement sold on the domestic market in Denmark saw a significant increase due to greater activity on the market, mainly in the segments of concrete products and prefabricated components segments, as well as favourable weather conditions. As a result, the Danish revenue advanced by three per cent to EUR181.2m. Meanwhile, sales volumes of grey cement experienced moderate growth in Belgium and France, compared to the 1H18. Average prices also saw a positive trend in both the domestic and export markets.

In Turkey the contraction in the country’s construction sector, in addition to the excess capacity in the country’s cement sector, led to a reduction in revenue from cement, in local currency, of around 37 per cent. Sales volumes of cement and clinker fell by approximately 40 per cent with volumes on the domestic market seeing a 47 per cent decline. Cement and clinker exports, meanwhile, increased. Average cement prices on the domestic market were moderately higher but with very different trends at the various plants.

Revenue from sales in China amounted to EUR24.3m and experienced significant growth compared to the 1H18 due to the increase in cement and white clinker volumes sold on the domestic market, in addition to favourable price trends. Exports remained marginal. Malaysian exports of cement and clinker in the 1H19 were in line with the previous year. The reduction in cement sales in some markets, such as South Korea, were offset by higher deliveries to the Philippines. Meanwhile, the reduction in clinker sales in Vietnam was offset by higher deliveries to Australia. Average prices in Malaysia are increasing substantially due to the country mix. 

During the 1H19 the group made investments totalling EUR38m, EUR27.8m of which related to the cement segment.