Titan posts rise in 5M EBITDA
Titan Group reported a drop in consolidated revenue by 2.1 per cent to EUR641.8m in the January-May 2020 period, following a 6.1 per cent growth in the 1Q20 and a subsequent slowdown in April and May during the peak of the coronavirus pandemic. However, EBITDA rose by 5.5 per cent to EUR97.3m thanks to a reduction in costs, mainly due to lower fuel costs. Titan's net profit after taxes and minorities was down 9.1 per cent YoY to EUR3.5m.
With construction considered an essential activity in most of the company's markets and all of its cement plants continuing their operation, the impact of the pandemic was less severe than initially feared, said Titan in a media statement.
Group net debt ended up EUR30m higher at EUR866m at the end of May 2020 when compared with the end of December 2019. Operating free cash flow generation was stronger (EUR19m versus EUR9m in 2019) owing to higher EBITDA levels and the reduction of capital expenditure in the current year. As of 31 May the group maintained a strong liquidity position in excess of EUR400m in cash balances and available committed bank credit facilities.
USA
In the USA Titan saw a strong start to the year and in the 1Q positive market trends and favourable weather conditions led to a 6.2 per cent expansion in revenue. Operations continued without interruptions with a moderate slowdown of demand in the Mid-Atlantic and Florida, but the effect of lockdown measures was more pronounced at its import terminal that supplies the New York metropolitan area in April. A recovery of sales volumes has been reported since the start of May. As a result, 5M20 renvues were at EUR391.9m (-0.4 per cent) while EBITDA slipped by two per cent to EUR64.7m when compared with the 5M19.
Greece and western Europe
In Greece, public works projects and increased private investment provided a positive growth momentum in the 1Q20. Cement export sales were similar to 2019. Revenue increased by 2.4 per cent YoY. In April domestic sales volumes were affected by the COVID-19 lockdown measures and local lockdowns in export markets led to shipments being postponed. A recovery followed in May, which saw a performance on a par with last year.
Southeastern Europe
Construction in southeast Europe saw activity at a similar level to the year-ago period in January, February and most of March, but this turned into a slowdown in late March and April as the coronavirus saw lockdowns imposed. A gradual recovery of sales levels was reported in May. Revenue in the 5M20 declined by 10.4 per cent YoY to EUR88.9m while the combination of a positive pricing environment and lower solid fuel costs helped to improve profitability. EBITDA reached EUR27.5m, an advance of 6.1 per cent YoY.
Eastern Mediterranean
Demand in Egypt rose 4.7 per cent YoY in the 1Q20 and sales in April continued to perform well. Following the spread of the coronavirus sales decelerated in May. In Turkey domestic sales continued to grow since the start of the year as public works and private projects fuelled demand. Exports continued to contribute to total revenues. The eastern Mediterranean region posted a 16.9 per cent YoY increase to EUR68.9m in the 5M20 while EBITDA swung into a EUR1.8m profit from a EUR-5.8m loss in the year-ago period.
