Titan Group reports revenues of EUR1202m in 9M20

Titan Group announced its consolidated revenue totalled EUR1202.4m for the 9M20, a marginal decline of 0.5 per cent when compared with the revenue in the 9M19. Operating profitability (EBITDA) in January-September 2020 rose by 10.1 per cent to EUR229.4m. Net profit after taxes and minorities in the 9M20 was EUR58m compared to EUR45.2m in 9M19.

In the 3Q20 Titan Group’s revenue fell by 1.7 per cent compared to the 3Q19 at EUR416m, while group EBITDA in the 3Q20 grew by 7.4 per cent to EUR92.6m. The company's 3Q20 net result after taxes and minority interests was a profit of EUR35.5m.

Regional performances
The company's operations in the USA achieved a revenue of EUR714.6m in the 9M20, down from EUR721.6m in the 9M19, while EBITDA rose to EUR141.4m compared to EUR137m in the 9M19. The residential segment, particularly  single-family new homes, as well as infrastructure were the main drivers of demand. Record-low mortgage rates and a low stock of unsold houses drove residential demand.

In Greece and western Europe, Titan saw revenues of EUR177.9m in the 9M20, down 3.9 per cent from EUR185.2m in 9M19, while EBITDA rose to EUR16.4m compared to EUR15.5m in 9M19. Greece saw a strong rebound after lockdown restrictions eased in May 2020. Major infrastructure projects have commenced but are still at their initial stages. The Athens Metro Line 4 contracts have been awarded.  

Southeastern Europe’s revenue rose to EUR196.6m in the 9M20, up 0.9 per cent from EUR194.7m in the 9M19. EBITDA rose to EUR72.2m in the 9M20, up 23.4 per cent from EUR59m in the 9M19.

The eastern Mediterranean region had revenues of EUR113.2m in 9M20, up 5.8 per cent from EUR107m in 9M19. EBITDA recorded EUR-1.1m in 9M202, which was still an improvement on the EUR-3m in 9M10. In Turkey June’s housing sales were the highest recorded. In Egypt domestic cement consumption shrank by about seven per cent in the 9M20 with a six-month suspension of licences for private construction partially lifted in October. 

In Brazil, Titan's joint venture recorded growth for the second year in a row, supported by a spur in DIY and private activity.

Outlook
The timing and extent of any upturn post COVID-19 still cannot be predicted. In the US solid backlogs point to continuing robust activity in the short-term, underpinned by low mortgage rates and low housing inventories. In Greece house construction is set accelerate and construction projects are expected to move in 2021. In southeastern Europe only essential construction work is going ahead, while in Turkey the situation remains fluid. Cement consumption is stabilising in Egypt. In Brazil the group expects a strong end to the year.