Titan Group announces 9M17 net profits of EU33.1m

Titan Group recorded a small increase in sales and operating profitability in the nine months of 2017, mostly thanks to the growth in the US market. Consolidated turnover reached EUR1144.5m, posting a 1.8 per cent increase compared to the same period in 2016. EBITDA increased by 4.6 per cent to EUR214.5m. Net profit, after minority interests and the provision for taxes, stood at EUR33.1m versus  EUR121.9m in the nine months of 2016.

Third quarter results in 2017 reflected two exceptional events, the negative impact of hurricane Irma in the US and the implementation of an organisational restructuring program in Egypt. As a result, 3Q turnover declined by 7.4 per cent, reaching EUR370.7m and EBITDA declined by 15.3 per cent to EUR72.4m. Net profit, after minority interests and the provision for taxes stood at EUR19.2m compared to EUR112.7m in the 3Q16.

In Egypt market conditions remained challenging, following the large devaluation of the Egyptian pound in 2016. Demand for building materials in 2017 is estimated at about eight per cent below the previous year’s levels.

With regard to the Group’s Joint Ventures, demand in Brazil continued to be weak in 2017. However, the decline slowed in the third quarter while prices edged upwards, following the improvement in key economic indicators in the country such as GDP, private consumption, inflation, etc.

In Turkey, demand remained strong. However, the entry into operation of two new plants in the vicinity of Adocim resulted in a decline in sales volume. The devaluation of the Turkish lira, further affected the profitability of the JV.

Group net debt as at 30th September, 2017 stood at EUR758m, EUR29m lower compared to the closing of the second quarter.