Titan Group reports 1H net profit up 34%
In the 1H24 Titan Group achieved consolidated sales growth of 7.6 per cent, reaching EUR1323m, with all regions supporting top-line growth and overall volumes increasing, leading to the delivery of another strong performance. Cement pricing was firmly upheld, exhibiting low regional variances, while selective price increases were performed in aggregates and ready-mix concrete.
EBITDA for the period reached EUR281.4m, increased by 16.7 per cent YoY, despite unabated cost pressures in factors such as labour, transportation and raw materials across the company's operating regions, as well as an elevated electricity cost in Greece. Net profit after taxes and minority interests (NPAT) in the first six months of 2024 rose to EUR148.7m, posting a significant improvement of 34.1 per cent YoY.
Domestic cement volumes in Greece grew to 8.7Mt, increasing by three per cent YoY, while elevated cement and clinker exports were achieved. Similar growth trends have also been recorded in Titan’s downstream products with ready-mix volumes increasing by eight per cent YoY and those of aggregates by three per cent. Building blocks and fly-ash volumes also increased compared to the same period in 2023.
Regional results
While cement volumes in the USA did not record growth due to works being postponed because of the weather, prices have grown, albeit at a slower pace compared to last year, while prices of ready-mix concrete maintained their positive momentum. Titan America’s sales in the 1H24 reached EUR774.6m (US$836m) up by 5.3 per cent, while EBITDA grew to EUR164.1m (US$177m), up by 21.1 per cent YoY.
The Greek and western European region recorded a very strong performance in the 1H24, driven by continuous, increased demand across almost all the countries. Robust cement volumes across the region were supported by solid market fundamentals and favourable weather conditions. The total sales for the region of Greece and western Europe in the 1H24 reached EUR218.5m, up by 10.7 per cent YoY, while EBITDA closed at EUR30.9m, down 15.1 per cent compared to EUR36.3m in the same period in 2023.
Sales for the southeast European region, in the first half of 2024 increased by 10.4 per cent to EUR215.4m, while EBITDA increased 37.9 per cent, reaching EUR82.8m.
Total sales in the eastern Mediterranean region reached EUR114.5m, up 13.3 per cent, while EBITDA dropped 60.8 per cent to EUR3.7m, compared to EUR9.3m in the 1H23.
2Q24 results
Group consolidated sales reached EUR699.3m at the end of the second quarter, up by 9.1 per cent versus the same period last year. EBITDA increased by 28 per cent to EUR171.6m with the US and southeast Europe leading the way in terms of profitability. Net profit after taxes and minority interests (NPAT) closed at EUR96.3m, marking a significant improvement of 44.6 per cent YoY.
Outlook
The consensus around the outlook of the global economy is tilting towards stable growth and moderate deflation through 2025. Tight monetary policy should continue to slow growth, even as rate-cutting cycles progress. In the US there have been a few months of downside inflation and upside growth surprises, followed by renewed inflationary pressures while European indicators signal a bottom turning to a moderate recovery, with economic expansion in the south still outpacing growth in northern and western Europe. Turkey and Egypt, two high-inflation economies, are set to get closer to normalisation over the year and into 2025, according to Titan.
