Cementir's 1Q22 regional results boosted by domestic cement sales

In the1Q22 Cementir’s regional revenues were boosted by Danish sales that reached EUR109m, up 17.7 per cent compared to EUR92.6m in the 1Q21, thanks to sustained demand in all business activities and the increase of sales prices, said Cementir.

Cement volumes on the domestic market, both grey and white, increased by around 20 per cent due to growth in all the main market segments, due to favourable weather conditions and the start of new infrastructure projects. Exports of white cement, fell by 19 per cent, due to lower deliveries to the USA. Ready-mixed concrete volumes in Denmark declined by three per cent compared to the corresponding quarter of 2021 due to the sales mix and restructuring activities at one of the plants. 

EBITDA reached EUR24.6m in the first quarter of 2022 (EUR23.4m in 2021), up 4.8 per cent compared to 2021. 

Norway and Sweden
In Norway ready-mixed concrete sales volumes increased by approximately 14 per cent compared to the same period of the previous year. In Sweden ready-mixed concrete and aggregate volumes fell by 20 and 28 per cent respectively, compared to the previous year. The production of aggregates was also constrained by the procedures in getting new concessions for quarries exploitation. In the 1Q22 sales revenues in Norway and Sweden grew by 15.8 per cent, and were equal to EUR 50.7m compared to EUR43.8m in the 1Q21, while EBITDA increased by 34.7 per cent to EUR4.2m (EUR 3.1m in the same period of 2021). 

Belgium, the Netherlands, France and Germany
In the 1Q22 cement sales volumes increased by five per cent compared to 2021. Ready-mixed concrete sales volumes in Belgium and France increased by approximately 18 per cent in the first three months of 2022, also thanks to the launch of some major projects in various areas of Belgium. 

Aggregates sales volumes increased by approximately 16 per cent compared to the corresponding first three months of 2021. Sales in Belgium benefitted from the growth in infrastructure construction, positive weather conditions and the acquisition of new customers. In France, on the other hand, there has been a recovery in the road construction sector. However, the trend in business was marked by the increase in the price of fuels. 

Overall, in the first quarter of 2022, sales revenues grew by 20.7 per cent to EUR76.1m compared to EUR 63m in the same period of 2021.

USA
In the United States, the 3.5 per cent growth in white cement sales volumes was driven by higher deliveries, especially in Texas and California. Overall, in the USA, revenues increased by 27.9 per cent to EUR44.6m (EUR34.9m in the 1Q21) while EBITDA increased by 69 per cent to EUR6.9m (EUR4.1m in 2021).

Turkey
In Turkey revenues reached EUR41.4m, an increase of 16.3 per cent compared to the 1Q21 (EUR35.6m). In the cement sector, the increase in sales prices led to a 108 per cent increase in revenues from sales in local currency. Sales volumes in the domestic market fell by nine per cent due to the significant reduction in sales at the Elazig plant (-55 per cent), in Eastern Anatolia only partially offset by higher deliveries from the Izmir plant (20 per cent) in the Aegean region for the continued reconstruction following the earthquake of October 2020. 

Cement and clinker exports, on the other hand, increased by four per cent. Ready-mixed concrete volumes also fell by 10 per cent compared to the first quarter of 2021, due to bad weather conditions. 

Volumes of aggregates, on the other hand, increased compared to the 1Q21, due to the full operation of the new quarry acquired in the second part of 2021. Overall, EBITDA reached EUR1.6m, an improvement on the previous year (EUR1.1m). 

Egypt
Egyptian sales revenues grew by 11.2 per cent to EUR14.3m (EUR12.9m in the 1Q021), despite lower volumes sold both on the local and export markets. White cement domestic sales volumes were affected by some deliveries to customers brought forward to December 2021 in anticipation of the year end.  EBITDA decreased by 16.8 per cent to EUR2.5m (EUR3m in the 1Q21), due to lower volumes sold and higher fuel purchase costs partially offset by higher selling prices. 

China
Chinese sales revenues increased by 23.4 per cent to EUR13.4m (EUR10.8m in the 1Q21) despite lower sales volumes by three per cent compared to the corresponding quarter of 2021. The contraction in volumes was offset by sales prices increase. EBITDA increased by 16.9 per cent to EUR 2.9m (EUR2.5m in the same period of 2021).

Malaysia 
Malaysian sales revenues increased by 18 per cent to EUR 2m (EUR 10.1m in the corresponding period of 2021) with a two per cent rise in overall volumes. Exports volumes increased by seven per cent compared to 2021, thanks to the higher clinker volumes to Australia only partially offset by the lower volumes in Vietnam. EBITDA reached EUR1.3m up 13 per cent compared to EUR1.2m in the corresponding quarter of 2021. EBITDA increased to EUR2.5m (EUR1.2m in the 1Q21).