Aalborg Portland posts record turnover in 2018

Denmark-based Aalborg Portland has recorded a five per cent rise in turnover to DKK8.90bn (US$1.37bn) in 2018, compared with DKK8.5bn in 2017, which is the company’s highest-ever turnover. The improvement is due to large acquisitions in Belgium and the US, which with satisfactory returns have been able to compensate for stagnation in construction activity in the Nordic region.

"We are proud that in 2018 we have delivered both the highest turnover and the best result in the Group's history. Since the financial crisis, we have had nine years of continuous growth. In 2018, we were particularly successful in gray and white cement in the Benelux and the USA," said Henning Bæk, CFO, Aalborg Portland Holding.

Compagnie des Ciments Belges SA (CCB), acquired in 2016, contributed to the group total with a turnover of more than DKK1.850bn, while US-based Lehigh White Cement Co contributed DKK776m, despite it not entering the group until 1 April 2018.

"For the first time in eight years, we experienced stagnation in construction activity in the Nordic region. The solid return on investment in Belgium and the US has offset this. In addition, we saw progress in China and fluctuating results in Malaysia, while again in 2018 we had challenges in the growth markets in Turkey and Egypt due to political instability," explained Mr Bæk.

Aalborg Portland's profit after tax increased 20.6 per cent YoY to DKK1.06bn from DKK887m in 2017, while its profit margin advanced to 12.8 per cent from 12.6 per cent in the period.