Cementir sales advance in most areas, but net profit falls

Cementir's turnover for the first nine months of 2018 improved by 1.5 per cent to EUR906.12m and EBITDA advanced by 11.6 per cent to EUR181.84m. However, the trading profit eased by 2.8 per cent to EUR103.5m reflecting the application of IFRS 16. After a net financial charge profit of EUR19.8m compared with a EUR32.4m profit, the pretax profit fell by 39.7 per cent to EUR83.7m. Net debt at the end of September was EUR346.3m, slightly higher than the EUR339.6m reported a year earlier.

The grey and white cement volumes declined by 7.9 per cent to 6.92Mt. The aggregates tonnage improved by 1.1 per cent to 7.34Mt, while deliveries of ready-mixed concrete fell by 18.3 per cent to 3.06Mm³. The workforce declined by 1.4 per cent to 3065 compared with a year earlier.

In the Nordic and Baltic area, turnover improved by 3.9 per cent to EUR425.6m. In Denmark turnover was 5.7 per cent ahead at EUR279.1m, with domestic cement shipments being ahead, both for white and grey. Grey cement exports were lower, reflecting lower sales to Iceland, but white cement exports rose, helped by higher volumes being sold to Poland, Germany and Great Britain. EBITDA rose by 17.5 per cent to EUR80.2m. Turnover in Norway and Sweden was ahead by one per cent to EUR146.7m and EBITDA rose by 29.2 per cent to EUR14.8m thanks to a better product mix. There were improved ready-mixed concrete volumes in Oslo and Bergen but little change in Norway as a whole. In Sweden ready-mixed concrete volumes declined, but aggregates sales improved.

The Belgian and French turnover improved by 7.2 per cent to EUR198.4m and EBITDA was 26.3 per cent ahead at EUR48.6m. Cement volumes improved in Belgium, France and The Netherlands. In aggregates, volumes increased in Belgium and The Netherlands thanks to favourable weather. Ready-mixed concrete volumes were lower in Belgium and France but improved in The Netherlands. In Italy turnover eased by 5.7 per cent to EUR52.1m, but EBITDA jumped from EUR1.7m to EUR6.6m thanks to higher transaction volumes within the group.

With the full consolidation of Lehigh White Cement from the first of April last year, the North American turnover rose from EUR81m to EUR116.6m, a 43.9 per cent advance and EBITDA went from EUR11.8m to EUR17.4m. In spite of unfavourable weather conditions seen notably in Texas and in New York, there was a EUR3.4m benefit from switching to IFRS 16.

The Turkish turnover dropped by 37.3 per cent to EUR89m, as the local currency fell further. EBITDA went from a EUR11.3m profit to EUR8m loss. Cement and clinker volume fell my around 30 per cent. Ready-mixed concrete volumes fell by around half, but prices did improve by some 15 per cent in local currency terms. However, the waste management business reported an increase in revenue. The Egyptian turnover recovered by 44 per cent to EUR27.1m and EBITDA just over doubled, rising by 106.8 per cent to EUR4.9m. The Egyptian pound gained some 10 per cent against the euro. Sales volumes were little changed compared with the previous year, but the stabilisation in the Sinai peninsula has a great beneficial effect. Higher prices in the domestic market and higher export volumes helped.

The Asia-Pacific area saw turnover advance by 7.3 per cent to EUR70m and EBITDA improved by 11.6 per cent to EUR15.2m. In Malaysia turnover eased by 1.8 per cent to EUR31.4m, with domestic deliveries increasing and average prices showing an improvement from a better product mix. The export volume saw little change overall, though sales of cement were higher, at the expense of clinker. In China domestic demand of white cement improved, reflecting production problems at competitors. Exports remain modest. The turnover improved by 16.1 per cent to EUR38.6m, while EBITDA advanced by 11.6 per cent to EUR10m.