Cementir posts higher sales in 1Q24

Cementir cement and clinker sales volumes equal to 2.4Mt increased by 2.3 per cent in the 1Q24 compared to the same period of 2023 thanks to the increase recorded in Turkey, which offset the decline in volumes in other geographical areas.

Francesco Caltagirone Jr, Cementir chairman and CEO, commented: “Results for the first quarter of 2024 were in line with our expectations, with sales volumes up but revenues and EBITDA down, compared to the first quarter of 2023. The excellent performance in Turkey, impacted by the devaluation of the exchange rate against the euro, was not enough to offset the decline in the Nordic and Baltic result. The still weak residential market due to restrictive monetary conditions, adverse weather conditions and fewer working days contributed to the reduction in the results”.

Volumes of ready-mixed concrete increased by 3.7 per cent YoY to 1.1Mm³ in the 1Q24, driven by the positive trend in Turkey and, to a lesser extent, in Sweden, while there was a decline in Denmark, Norway and Belgium mainly due to particularly adverse weather conditions. In the aggregates sector, sales volumes amounted to 2.4Mt, up 8.9 per cent with an increase in Turkey, due to the opening of a new quarry, and Denmark, while sales in Belgium remained stable when compared with the year-ago period.

Group revenue from sales and services reached EUR367.1m in the 1Q24, down 11.3 per cent compared to EUR413.8m in the 1Q23. The decrease in sales was caused by unfavourable weather conditions, fewer working days due to the Easter holidays and a negative exchange effect of EUR50.1m. 

At EUR304.8m, operating costs fell by 11 per cent YoY compared to EUR342.5m in the 1Q23. The cost of raw materials, equal to EUR157.7m, decreased by 18.3 per cent compared to EUR192.9m in the 1Q23, due to both a reduction in the cost of some production inputs and an exchange rate effect, especially in Turkey. At EUR52.9m, personnel costs increased by 2.4 per cent compared to EUR51.6m in the same period of 2023.

EBITDA amounted to EUR69.3m in the 1Q24, down 19 per cent compared to EUR85.6m in the 1Q23, reflecting lower results in Denmark and Norway and, to a lesser extent, in the United States and Asia Pacific as well as a negative exchange effect of EUR9.7m. The EBITDA margin was 18.9 per cent compared to 20.7 per cent in the 1Q23, due to lower volumes in Europe, which were only partially offset by higher sales in Turkey. EBIT, including amortisation, depreciation, impairment losses and provisions of EUR29.8m (EUR29.5m in the 1Q23), amounted to EUR39.6m compared to EUR56.2m in the same period of the previous year. Amortisation, depreciation, impairment losses and provisions include amortisation and depreciation due to the application of IFRS 16 of EUR8.3m (EUR7.9m in the same period of 2023). 

Profit before taxes was EUR64.1m, down 6.2 per cent from EUR68.3m in the 1Q23.