FLSmidth report 3% EBITA margin growth for cement in 2022

FLSmidth announced a positive 3.3 per cent EBITA margin improvement for its cement division in 2022,  compared to -0.3 per cent in 2021. Cement EBITA amounted to DKK204m (US$29m) in 2022 compared to DKK-19m in 2021. 

Cement revenue increased by two per cent YoY organically and by seven per cent including favourable currency effects, reported FLSmidth. Cement EBITA continued the positive trend seen during 2022, driven by the increased revenue and higher gross margin. The company announced that it achieved YoY cement service order intake growth of nine per cent and service revenue growth of 12 per cent. Group order intake increased by 16 per cent YoY organically, driven by both mining and cement.

Group CEO, Mikko Keto, commented: “Cement has shown a stable performance and continued the positive trend of improving profitability, and thereby returned to positive EBITA.”

However, the cement division's 4Q22 order intake decreased by 20 per cent YoY organically. Including currency effects, the 4Q order intake was down by 17 per cent compared to 4Q21. Cement revenue decreased by 14 per cent organically compared to the 4Q21, due to supply chain challenges and a strong comparison quarter. Including currency effects, cement revenue decreased by 11 per cent in the 4Q22.