Cement Hranice records 29% rise in 2023 profit

Czech cement producer Cement Hranice, owned by Germany’s Dyckerhoff AG, recorded a 29 per cent increase in net profit in 2023, reaching a record CZK916.2m (US$40.8m), compared to CZK710.5m in 2022. Revenues from sales grew by 5.5 per cent YoY, advancing from CZK2.227bn in 2022 to CZK2.349bn in 2023, according to the company’s annual report.

Despite a reduction in cement sales volume last year, revenue growth was driven by higher product prices, according to the company's Board Chairman, Roman Michalcik. The price increases were primarily a response to the soaring costs of energy, particularly coal, which represents a significant portion of production expenses. "The price of coal in particular has seen an unprecedented increase, to which we have responded by further increasing the share of alternative fuels in cement clinker," Mr Michalcik said.

Most of Cement Hranice's sales occurred in the domestic market, where revenues rose from CZK1.908bn in 2022 to CZK2.025bn in 2023. However, export sales declined to CZK416m, down CZK27m from the previous year.

Cement Hranice is a leading Czech Republic-based cement producer based in North Moravia, owned by Germany's Dyckerhoff AG. The company specialises in cement production for both domestic and export markets, with the majority of its sales coming from the Czech market. Known for its focus on efficiency and innovation, Cement Hranice has been increasing its use of alternative fuels in response to rising energy costs while maintaining strong financial growth.