Cementir's regional results for the 2024 saw strong cement sales in Türkiye and stable sales in Denmark and USA, but elsewhere cement performances came under pressure from slowing construction and reduced consumption.

Cement volumes in Denmark in 2024 saw both grey and white cement sales remain in line with the previous year. After a slow start of the year, with the first quarter affected by harsh weather conditions and a still stagnant market environment, volumes progressively increased in the third and the fourth quarter, rising by five and eight per cent, respectively, thanks to a market recovery combined with an increase in cement supply to the Fehmarn Belt submarine tunnel project.

Cement volumes also benefitted from the acquisition of a ready-mix concrete plant in the central-eastern Jutland peninsula and a minority stake in a second ready-mix concrete plant on the island of Funen, which took place in April 2024.

Cement exports, on the other hand, declined by around 4.5 per cent due to lower deliveries to Belgium, France and Norway, only partially offset by higher deliveries to Iceland, Poland, the UK and Germany.

Aggregate sales volumes declined by four per cent compared to 2023, compensated by an almost 30 per cent increase in the fourth quarter.

Regional performances
Norway and Sweden
In 2024 sales revenue in Norway and Sweden decreased by 10.8 per cent to EUR140.8m (EUR157.9m in 2023). In Norway ready-mixed concrete sales volumes decreased by 18 per cent compared to the previous year due to slowdown in residential and commercial demand, delays or postponement of major infrastructure projects, which caused temporary plant closures. In Sweden, ready-mixed concrete volumes increased by 32 per cent YoY in 2024 due to the contribution of a major project in southern Sweden, while aggregate volumes decreased by 10 per cent despite a four per cent recovery in the last quarter, supported by the start of a major project.

Belgium
Sales revenue decreased by 6.8 per cent to EUR335.3m compared to EUR359.9m in 2023.  In 2024 cement sales volumes in the domestic market decreased only moderately compared to the previous year. The construction sector continues to face an unfavourable economic context, with the market shrinking between 6-8 per cent from 2023.

Exports to northern France and The Netherlands, on the other hand, fell more sharply due to the slowdown in the residential sector, and in France, due to a physiological market slowdown following the conclusion of the Olympics.

Ready-mixed concrete sales volumes decreased by around five per cent compared to 2023 despite a 15 per cent rise recovery in the last quarter, thanks to the restart of major projects, the acquisition of new contracts and mild weather conditions. EBITDA decreased by 3.7 per cent to EUR93.9m (EUR97.6m in the previous year) mainly because of the cement segment, which was penalised by lower sales volumes.

Türkiye
Revenues, at EUR353.5m, increased by 7.2 per cent compared to 2023 (EUR329.7m), penalised by the 38 per cent depreciation of the Turkish lira compared to the average euro exchange rate in 2023. Revenues in local currency increased by 48 per cent.

Cement sales volumes in the domestic market increased by nine per cent YoY due to significant growth in the Elazig and Kars regions, supported by post-earthquake reconstruction, which led to an increase in consumption of approximately 3.1Mt in 2023 and 3.9Mt in 2024.

Cement and clinker exports also increased by nine per cent compared to 2023, although penalised by the lack of exports to Israel as a result of the embargo.

Ready-mixed concrete volumes increased by 19 per cent compared 2023, supported by post-earthquake reconstruction, particularly in the Eastern Anatolia and Mediterranean regions.

Aggregate sales increased by 34 per cent YoY thanks to the full-year contribution of the new quarry in Malatya, Eastern Anatolia, which started operations in July 2023, as well as increased demand. Overall, the region’s EBITDA was EUR 79m up 5.6 per cent from EUR74.8m in the previous year.

North America
In the USA, revenues in 2024 were constant at EUR182.7m (EUR182.8m in 2023). White cement sales volumes recorded a slight increase compared to 2023, thanks to the commercial policies implemented since the beginning of the year. Additionally, a new terminal has been opened in Chattanooga to reduce transport costs and increase sales. EBITDA decreased by 5.7 per cent to EUR24.8m (EUR26.3m in 2023), due to lower sales prices resulting from strong competition and higher raw material, transport and fixed costs, partially offset by higher deliveries.

Egypt
Sales revenues amounted to EUR46.3m, down 7.9 per cent compared to EUR50.3m in 2023, mainly due to the 47.5 per cent devaluation of the Egyptian pound compared to the average exchange rate of the euro in 2023. Revenues were affected by a different geographical mix of exports and a nine per cent drop in volumes in the domestic market, due to the weakness of the residential sector and the cutting or postponement of some large public projects.

Exports, on the other hand, grew by seven per cent compared to 2023, with a different geographical mix: higher deliveries in Europe, Africa and the United States, and lower in the Middle East. EBITDA increased by 34.6 per cent to EUR16.9m (EUR 12.5 million in 2023), thanks to higher selling prices, partially offset by higher variable and fixed costs, and the devaluation of the Egyptian pound.

China
Sales revenue decreased by 19 per cent to EUR55.1m (EUR68.1m in 2023), as a result of a 15 per cent drop in sales volumes, a reduction in prices, and the 1.7 per cent devaluation of the Chinese yuan against the average euro exchange rate in 2023. EBITDA decreased by 28.4 per cent to EUR13.3m (EUR 18.5m in 2023), due to lower sales volumes and prices, higher transport and fixed costs, only partially offset by energy savings.

Malaysia
Sales revenue decreased by 7.4 per cent to EUR50.2m (EUR54.2m in 2023) due to lower sales volumes and prices of exported clinker and lower cement sales to Australia. Cement and clinker exports remained broadly stable, with an increase in deliveries to the Philippines, Vietnam and South Korea, offset by a decline to Australia, Cambodia, China, Bangladesh and Myanmar. After a promising first quarter, Australia's construction sector slowed from the second quarter, especially in the residential segment, with exports also affected by high transport costs and a shortage of ships.