Cementir expands into Belgium

Cementir's turnover improved by 1.1 per cent to EUR481m in first half of the year, as the improvements in Denmark, Norway and Sweden as well as Malaysia made up for lower results from Italy, Egypt and China, while Turkey was broadly stable.

EBITDA, however, declined 1.5 per cent to EUR72.04m. After a 4.7 per cent reduction in depreciation and similar charges to EUR40.2m, the trading profit improved 2.8 per cent to EUR31.8m. The net financial item swung from a positive EUR5.3m to a negative EUR10.2m, resulting in a pretax profit 40.3 per cent lower at EUR21.6m and the net attributable profit fell by 53.7 per cent to EUR11m. The net debt at the end of June stood at EUR262.9m, 15.7 per cent lower than a year earlier, giving a gearing level of 28.5 per cent compared with 30 per cent a year earlier. Capital expenditure in the period amounted to EUR20.9m, of which cement accounted for EUR17m.

Grey and white cement shipments increased by 4.8 per cent to 4.75Mt, while the aggregates tonnage declined by eight per cent to 1.7Mt. Ready-mixed concrete deliveries were 20 per cent higher at 2.14Mm³. Aalborg Portland Holding, part of Cementir, has agreed earlier this month to acquire Compagnie des Cimentes Belges for an enterprise value of EUR312m, while the acquisition of Sacci SpA is expected to be completed before then.

The Italian turnover declined by 8.6 per cent as reductions of 9.8 per cent in cement and of 18.5 per cent ready-mixed concrete shipments were partially offset by higher prices. In Denmark cement volumes grew by 7.3 per cent while ready-mixed concrete deliveries were stable. In Sweden ready-mixed concrete deliveries jumped by 28.2 per cent, but aggregates volumes declined. Norway saw a near 13 per cent increase in ready-mixed concrete volumes.

Turkey saw a broadly stable turnover of EUR116.9m, while in local currency there was a 14 per cent increase as the lira declined. Deliveries of cement and ready-mixed concrete rose by 9.1 per cent and 41.2 per cent, respectively. Egyptian turnover declined by 12.3 per cent to EUR26m with a higher share being exported. In Malaysia turnover advanced thanks to a 26.9 per cent increase in the volume of white cement and clinker sold, with most of the increase going to Australia.  In China turnover was broadly stable in local currency, but emerged lower on conversion given the 5.1 per cent drop value of the yuan against the euro.