Cementir sales up but profit slips in 9M20

Cementir posted a revenue of EUR896.8m in the nine-month period ended 30 September 2020 down one per cent YoY, according to a company statement. EBITDA declined 2.1 per cent to EUR178.1m from EUR181.8m. Profit before taxes decreased 2.3 per cent to EUR81.2m in January-September 2020 when compared with EUR83.7m in the equivalent period of the previous year. 

“In the first nine months of 2020, despite the serious pandemic, the Group reported a 11.3 per cent increase in cement volumes sold, marginally decreasing revenues and an EBITDA down by 2.1 per cent compared to in the first nine months of 2019. Results significantly improved in the third quarter, with cement volumes sold up 19 per cent and EBITDA up 12 per cent on the third quarter of 2019,” commented Francesco Caltagirone Jr, chairman and CEO.

However, the company reported an 11.3 per cent rise in sales of clinker, grey and white cement as it sold 7.702Mt in the 9M20. In addition, ready-mix concrete sales advanced two per cent to 3.123Mm3, but aggregates sales were down 4.1 per cent to 7.041Mt.

Revenue in the Nordic and Baltic fell 1.8 per cent to EUR418.087 on the back of a weaker Norwegian ready-mix concrete market and increased competition, but EBITDA growth remained firm at 13.4 per cent to EUR110.336m. In North America revenues slipped 1.3 per cent to EUR115.049m and EBITDA fell 9.4 per cent to EUR14.762m in the 9M20 as the COVID-19 pandemic impacted construction. Meanwhile in Turkey Cementir revenues posted a 12.8 per cent advance to EUR100.354m on the back of strong cement and clinker sales. EBITDA improved from EUR-7.994m in the year-ago period to EUR-5.36m. The Egyptian operations also saw gains despite a strong contraction in April and May due to the pandemic. The significant recovery noted particularly from June to August played a key part in the 15.6 per cent YoY rise in 9M revenues to EUR31.279m and the 40.3 per cent increase in EBITDA to EUR6.814m. Revenues in Asia-Pacific declined 7.2 per cent to EUR64.959m in the 9M20, but EBITDA advanced by three per cent YoY to EUR15.632m.

The group’s net financial debt stood at EUR218.5m on 30 September 2020, representing a 36.9 per cent reduction when compared with 30 September 2019, when debt reached EUR346.3m.

Looking ahead, the company said in its outlook for 2020: “Although our fourth quarter 2020 performance could be impacted by COVID-19 pandemic, in light of the positive third quarter performance, we are confident to reach full year guidance of consolidated revenues of approximately EUR1.2bn and an EBITDA of between EUR230-240m. For the same reasons, net financial debt is expected to reach around EUR160m at the end of 2020 (previous guidance of EUR180m), including capex of around EUR60m.”