Cimpor EBITDA recovers by 5%

Cimpor’s first quarter turnover eased by 0.3 per cent to EUR452.9m, while the EBITDA recovered by five per cent to EUR84.1m. The trading profit (EBIT) improved by 3.1 per cent to EUR36.7m. The net financial charge came down by 18.1 per cent to EUR62.1m to give a pre-tax loss of EUR25.4m, compared with EUR40.3m a year earlier.

At the net attributable level there was a loss of EUR34.4m, compared with a loss of EUR40.7m a year earlier. The net debt was 10.7 per cent higher at EUR3,3509m and the gearing level remained in the stratosphere, given that the equity was a negative EUR3,509m.

The consolidated cement and clinker deliveries declined by 6.8 per cent to 5.62Mt as volumes declined in Mozambique, Brazil, Egypt and the Cape Verde islands. The most significant volume growth was seen in Paraguay with a 64.7 per cent advance.

Turnover in Portugal recovered by 13.6 per cent to EUR61m and the EBITDA, including Cape Verde, was ahead by 28.7 per cent to EUR10.5m. The cement and clinker volumes from Portugal recovered by 5.6 per cent to 0.77Mt. Export volumes still badly affected by poor volumes, but domestic volumes improved by 24 per cent. Turnover in the Cape Verde Islands declined by 15.5 per cent to EUR7 and the cement volume declined by 12.2 per cent to 43,000t. Cimpor's international trading and shipping activities saw turnover ease by 3.4 per cent to EUR47m, while the profit contribution fell by 21.2 per cent to EUR1.6m.

In Brazil, which still remains the most important country for Cimpor in terms of cement volume, but no longer in terms of turnover or EBITDA. The cement and clinker tonnage declined by a further 15.4 per cent to 1.92Mt and the reduction in turnover was 10.7 per cent to EUR120.75m. A continued weak economy combined with the over-capacity led to a fall in margins and the EBITDA dropped by 49 per cent to EUR8.7m. In the period, Brazil accounted for 33.9 per cent of the group cement volume and for 26.7 per cent of the turnover, compared with 37.3 per cent and 26.5 per cent respectively a year earlier.

Argentina remains the next most important country with a cement volume 2.7 per cent ahead at 1.45Mt and a turnover 28.7 per cent ahead at EUR172m. In Paraguay, the cement volume advanced by 64.7 per cent to 147,000t and the turnover grew by 60.7 per cent to EUR17m. The total South American profit contribution recovered by 16.3 per cent to EUR60.7m.

In Egypt the turnover declined by 54.5 per cent to EUR24.0m though the cement tonnage was off by a more modest 15.1 per cent to 0.72Mt as the local currency fell by 51 per cent.

South African turnover recovered by 35.3 per cent to EUR20.8m as the currency rose and cement volumes improved by 11.2 per cent to 0.35Mt. EBITDA was only modestly ahead because of higher maintenance costs in the period. In Mozambique, cement deliveries dropped by 31.8 per cent to 0.25Mt in a difficult economic environment and the turnover came down by 37 per cent to EUR21.5m. The overall African EBITDA fell by 36.4 per cent to EUR11.3m.