Cementir sees 1H net profit rise of 140%

Cementir reported a 16.5 per cent rise in revenues for the first half of 2021 to EUR664.5m from EUR570.4m in the 1H20. The increase reflects an 18.7 per cent rise in the sales of grey and white cement and clinker to 5.457Mt, a 31.4 per cent increase in ready-mix concrete sales to 2.515Mm3 and a 12.2 per cent uptick in aggregates sales to 5.211Mt when compared with the 1H20.

EBITDA increased by 36.6 per cent to EUR133.5m in the 1H21 from EUR97.8m in the year-ago period. Group net profit advanced 139.6 per cent to EUR47.9m when compared with the 1H20, when group net profit stood at EUR20m.

In addition, the company reduced its net financial debt by 51 per cent to EUR137.6m at 30 June 2021 from EUR280.6m at 30 June 2020.

“The first half of 2021 closes with very satisfactory results. Compared to the first half of 2020, revenues grew by over 16 per cent, EBITDA by 37 per cent and group net profit by 139.6 per cent. Despite the first half 2020 results were affected by the lockdown due to COVID-19, during 2021 all the markets in which we operate are showing signs of vivacity and in particular Turkey is recovering significantly,” commented Francesco Caltagirone Jr, chairman and CEO.

Nordic and Baltic performance
The Nordic and Baltic market saw a 12.5 per cent rise in revenues to EUR305.6m while EBITDA edged up 2.9 per cent to EUR69.2m. In Denmark sales revenues in the 1H21 reached EUR204.5m, up nine per cent YoY. Growth in the ready-mix concrete, precast and bagged cement segments lead to a seven per cent increase in the domestic market while a favourable product mix positively impacted average sales prices. White cement exports were up around 22 per cent as exports to the USA, UK, Germany, Poland, Belgium and France increased. However, exports of grey cement declined 11 per cent YoY due to lower deliveries to Norway, only partly offset by higher sales in Iceland. In Norway and Sweden revenue was up 14.3 per cent YoY to EUR95.7m on the back of improving ready-mix concrete sales.

Belgium
In the 1H21 cement sales in the Belgium market increased by 16.4 per cent to EUR139.9m on the back of positive sales volumes in Belgium and France while sales slipped in The Netherlands and Germany. EBITDA was up 25.2 per cent YoY to EUR29.1m in the 1H21.

North America
In North America revenues edged up 1.2 per cent to EUR76.2m in the 1H21 while EBITDA advanced eight per cent to EUR10.9m. White cement sales volume growth of 13 per cent in the USA was supported by higher deliveries in Florida and New York, while sales in California and Texas were in line with the 1H20. The YoY change reflects the negative impact in 2020 due to the spread of the COVID-19 pandemic.

Turkey
In Turkey revenues reached EUR82.6m in the 1H21, representing a 44.4 per cent increase YoY, despite the devaluation of the Turkish lira agains the euro. EBITDA surged 183.3 per cent to EUR7.4m in the 1H21.

Egypt
Revenue from sales in Egypt advanced 19 per cent YoY to EUR23.6m in the 1H21 while EBITDA increased by 41.7 per cent YoY to EUR5.3m as sales volumes of white cement increased 30 per cent from a low base in the 1H20 due to the pandemic. Following the impact of the pandemic in the 1H20, exports improved in the 1H21 by 20 per cent, with Russia and the USA taking in higher volumes while Saudi Arabia’s offtake is contracting.

Asia-Pacific
In the Asia-Pacific area, which includes China and Malaysia, revenues in the 1H21 were up by 28.6 per cent YoY to EUR48.6m as the Malaysian market saw a 36.6 per cent increase in sales while deliveries in China were up 22.2 per cent. EBITDA improved 33.1 percent to EUR10.9m, supported by a 78.6 per cent advance to EUR2.7m in Malaysia and a 22.6 per cent uptick to EUR8.1m in China.

Sales volumes increased by 16 per cent compared to the corresponding half of 2020 due to the start of numerous works, favoured by a substantial public spending plan by the government to support growth, and the recovery of both residential and industrial construction activity.


Outlook
In light of the results for the first half of the year, the group expects to achieve consolidated revenues of approximately EUR1.35bn (previous target at EUR1.3bn), an EBITDA of between EUR295m-305m (previous target between EUR285m-295m), a net financial debt at the end of 2021 of approximately EUR30m, including both a higher share buyback cash outlay than originally estimated and approximately EUR95m of investments. No substantial changes in the workforce are expected. This forward-looking indication does not include any new outbreaks of the COVID-19 pandemic in the coming months.