Cementir's sales in the 1H22 were led by Denmark, where sales revenue in the 1H22 reached EUR233.3m, up 14 per cent from EUR204.5m in the 1H21, due to sustained demand in all business segments, particularly in cement, and higher sales prices.
Cement volumes in Denmark, both grey and white, increased by about 14.5 per cent YoY in the 1H22 due to growth in all major market segments, favourable weather conditions and the start of new infrastructure projects.
Exports of white cement fell by 26 per cent YoY in the 1H22 due to redistribution of sales in the United States to other group companies. On the other hand, there was an increase in sales of white cement in Poland and a contraction in France and Belgium.
In the 1H22 cement sales volumes in Belgium increased by approximately three per cent compared to 2021, with positive trends in Belgium, the Netherlands and France and a decline in Germany. In Belgium, demand developed positively, especially in the first quarter, also supported by favourable weather conditions, with average sales prices rising.
White cement sales volume growth in North America was 1.5 per cent, supported by higher deliveries especially in Texas and California, where demand was sustained and is expected to continue its upward trend in the coming months, especially in the residential and bagged cement sectors. In contrast, the York (PA) region was affected by adverse weather conditions in the first quarter and problems caused by a shortage of logistics personnel. Demand is also expected to be robust for the coming months.
The increase in Turkish cement sales prices led to a strong increase in sales revenues in local currency. Sales volumes in the Turkish market decreased by 14 per cent due to a significant reduction in sales at the Elazig plant in Eastern Anatolia (45 per cent) and Kars in northeastern Turkey (-46 per cent), only partially offset by higher deliveries from the Izmir plant in the Aegean region (+7 per cent). The contraction in Elazig is also to be attributed to the end of infrastructure projects related to the reconstruction following the January 2020 earthquake, while in the Kars area weather conditions were worse than expected and uncertainties about the economic situation in Turkey had a greater influence on the start of new construction projects. Cement and clinker exports increased by about 30 per cent also due to higher clinker volumes exported to Denmark.
Chinese sales revenue increased by 10.7 per cent to EUR31.2m (EUR 28.2m in the 1H21) despite the fact that sales volumes declined by 10.5 per cent compared to the 1H21 for a number of reasons: further restrictions to limit the spread of COVID-19 – especially in the east and south of the country (Shanghai was in lock down until 1 June), logistical problems in the country's major ports, a major slowdown during the Chinese New Year, as well as adverse weather conditions and international political tensions.
Sales revenue in Malaysia increased by 31.5 per cent to EUR26.8m (EUR20.4m in the corresponding period of 2021) against a 5.5 per cent growth in total volumes. Malaysian sales were down by 16 per cent due to the decline in private residential activity and the shortage of skilled labour at some large construction sites.
Exports increased by eight per cent compared to 2021, due to higher volumes sold in Australia, Cambodia and Myanmar only partially offset by lower volumes in South Korea.
Outlook
The economic indicators for the second quarter point to downside risks for most advanced and emerging economies. The price of energy commodities marked further significant increases, mainly due to the continuation of the Ukraine-Russia war, triggering further inflationary pressures.
With reference to the group's activities, in light of the results for the first half of the year, the targets announced on 8 February 2022 are confirmed, ie to achieve consolidated revenues of more than EUR1.5bn, an EBITDA of between EUR305m and EUR315m and a net cash position of about EUR60m at year-end, including industrial investments of about EUR95m.
