Cimpor reports 7.4% turnover growth for 1Q15

Cimpor has released its interim consolidated financial report for 1Q15. Although positive developments were reported for many of the markets in which Cimpor operates, challenges in countries such as Brazil impacted the group’s quarterly results.

Group results

• Cement and clinker sales volumes fell from 7.2 million t in 1Q14 to approximately 6.8 million t in 1Q15, a decline of 5.3%.
• Turnover totalled €636.6 million, up 7.4% y/y. This increase has been attributed to an overall rise in average prices, which helped to mitigate the decrease in sales volumes.
• Accumulated EBITDA came in at €123.4 million, down 7.2% on the €133.1 million achieved in the corresponding quarter in 2014. Maintenance work, higher energy costs, and seasonal 1Q lower activity contributed to this contraction.
• Net profit fell to negative €17.2 million.

Regional results

Brazil: unfavourable economic conditions and water supply constraints affected the construction industry, in turn impacting Cimpor. Maintenance, logistics and energy costs contributed to a decline in EBITDA.

Cement and clinker sales volumes fell by 12.2% y/y to 2.73 million t; sales turnover decreased by 9.7% y/y to €246.8 million; EBITDA came in at €40.6 million, compared to €66.6 million in 1Q14.

Argentina: Cimpor remained the market leader and saw its sales volumes growth outperform local consumption growth.

Sales volumes improved by 6.1% y/y to reach 1.52 million t; sales totalled €168.3 million, up 44.1% y/y.

Paraguay: demand remained dynamic and Cimpor increased production efficiency with its new kiln.

Volumes were up 3/9% y/y to 98 000 t; sales turnover grew by 15.5% y/y.

EBITDA for Argentina and Paraguay combined reached €44.4 million, an increase of 48.3% y/y.

Egypt: lower demand levels in the country were accompanied by an adjustment in market share after Cimpor achieved particularly high sales volumes in 1Q14. New products and optimisation of the company’s thermal profile partially offset an increase in energy costs and decline in volumes.

Cement and clinker volumes declined by 12.3% y/y to 872 000 t; turnover improved by 3.1% on 1Q14.

Mozambique: a new commercial dynamic helped to somewhat mitigate challenges, which included increased competition from importers, poor weather conditions, unreliable power supply, and maintenance work.

Sales volumes contracted by 1.5% y/y 291 000 t; sales turnover grew by 14.8% y/y to €32.7 million.

South Africa: increased competition was offset by the company’s commercial policy and the introduction of coprocessing.

Growth of 4% y/y was reported for cement and clinker sales volumes, which totalled 307 000 t; sales improved by 21.3% y/y to €29.8 million.

Cimpor achieved EBITDA of €27 million in the Africa region in 1Q15, up 3.8% y/y.

Portugal: Cimpor tapped in to domestic consumption growth whilst maintaining its export capacity.

Cement and clinker sales volumes reached 1.12 million t, an increase of 3.2% y/y; sales turnover increased by 6.9% y/y to €70.9 million.

Cape Verde: Cimpor increased its market share and experienced an increase in sales volumes against a backdrop of stable local demand.

There was a 5.9% y/y rise in cement and clinker sales volumes; turnover reached €6.8 million, up 5.8% y/y.

EBITDA for Portugal and Cape Verde combined improved by 105.9% y/y to €9.7 million.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/europe-cis/20052015/cimpor-publishes-1q15-results-873/