Cimpor books major loss in 2015
Cimpor's turnover declined by 4.3 per cent in 2015 to EUR2492.7m while EBITDA came off by 18.6 per cent to EUR525.7m. The trading profit emerged 30.2 per cent lower at EUR313.3m and the net financial charge increased by 9.3 per cent to EUR406.1m, giving a pretax loss of EUR92.8m compared with a profit of EUR77.3m in the previous year. A EUR12.4m tax credit helped to reduce the net attributable loss to EUR71.2m compared with a profit of EUR27.2m in the previous year.
Net debt at the end of 2015 stood at EUR3073m, a decline of 10.6 per cent, while shareholders' funds dropped by 71.2 per cent to EUR268m, giving an astronomic gearing level of 11.466 per cent compared with an already high 283.7 per cent a year earlier. Capital expenditure was reduced by 45.2 per cent to EUR109m.
Performance by region
The group cement and clinker volume sold in the year amounted to 28.14Mt, a decline of 6.1 per cent. Brazil represented 37 per cent of the consolidated cement volume, compared with 41.7 per cent a year earlier. Next in line was Argentina (23 per cent), followed by Portugal (15.5 per cent), Egypt (11.9 per cent), Mozambique (5.6 per cent) and South Africa (five per cent).
Brazil remains, by far, the largest market for the group for cement, concrete and mortar, and is the second largest producer in Brazil, behind Votorantim, with an installed cement capacity of 18.3Mta. Influenced by weak domestic demand and a lower exchange rate, turnover fell by 30.3 per cent to EUR814.2m and EBITDA dropped by 46.1 per cent to EUR173.8m. Cement and clinker sales came down by 16.3 per cent to 10.45Mt. As the clinker capacity utilisation declined, one kiln and two grinding centres were mothballed and some concrete and aggregates operations were sold, with EUR20m being raised from the sale of the Guarulhos and Barueri quarries. The company is expecting to see a further decline in volumes in 2016.
Argentina's Loma Negra had a record year and cement sales grew by 6.4 per cent to 6.57Mt, a new high beating the previous record figure of 6.18Mt set in 2013. Cement capacity now stands at 8.7Mta and the company enjoys a 46 per cent market share, which has improved a bit of late. The turnover rose by 40 per cent to EUR763.7m and advanced by in excess of 50 per cent as prices were increased. Yguazu Cementos in Paraguay saw its cement volume decline by 5.7 per cent to 0.4Mt. The previous year had been a record 0.42Mt as its new cement works came on-stream with a cement capacity of 0.8Mta. The turnover in Paraguay was 5.1 per cent lower at EUR53.1m as prices came under pressure. Between them, Argentina and Paraguay generated EBITDA 56.9 per cent higher at EUR200.9m.
The Portuguese turnover improved by 6.4 per cent to EUR291.9m as domestic deliveries registered a 10 per cent increase, but exports were lower, notably to north African oil producers, with the overall export share declining. Cement and clinker deliveries rose by 1.3 per cent to 4.43Mt and capacity stands at 9.1Mta. The underlying profitability improved, but there was financial loss of EUR8.4m relating to a legal process. In Cape Verde cement volumes were 8.2 per cent lower and the turnover was off by 3.4 per cent to EUR26.1m. Total EBITDA from Portugal and Cape Verde declined by 4.9 per cent to EUR31.2m.
Shipments in Africa declined by 5.5 per cent to 6.41Mt, with turnover being off by 2.4 per cent to EUR509.3m and EBITDA falling by 25.8 per cent to EUR110.2m. In Egypt Amreyah saw turnover decline by 12 per cent to EUR217.2m, with cement and clinker shipments declining by 10 per cent to 3.38Mt, after a having seen particulary strong growth in the previous year. The capacity currently stands a 5.6Mt, representing some seven per cent of the Egyptian capacity. EUR47m is being invested in a new coal mill which should come on-stream in 2016.
In Mozambique turnover grew by 8.4 per cent to EUR161.4m as cement deliveries improved by 4.8 per cent to 1.59Mt, a new record. The turnover in local currency increased by 15.6 per cent, but that currency lost value in dollar terms. A new integrated cement works is being built at Nacala. South Africa produced a turnover 3.7 per cent higher at EUR130.7m while cement increased its share of the total turnover, though cement shipments declined by 4.3 per cent to 1.44Mt.
