Cementos Molins Group 1H14 results
For the first six months of 2014, Cementos Molins S.A. has reported a turnover of €248.408 million, down 6.7% on 1H13’s €266.185 million.
The group’s Spanish operations posted a loss of €13.624 million. Demand in the country has remained at low levels, but a 28% y/y increase in clinker export volumes and the results of cost and production structure initiatives helped EBITDA to improve by 9.4% to reach €89.338 million.
Meanwhile, its international operations achieved a 2.9% y/y rise in profit, which came in at €31.598 million. However, EBITDA declined by 6.9% to €59.003 million.
The group’s operations in Argentina (Cementos Avellaneda) and Uruguay (Cementos Artigas) were hit by lower sales and currency depreciation. As a result, EBITDA fell by 28.7% in Argentina and by 40.5% in Uruguay. Results were more positive in Mexico where sales volumes increased. EBITDA for the group’s operations in the country, Cementos Moctezuma, was up 7.3% y/y to €88.808.
In Bangladesh (Lafarge Surma), EBITDA declined from €24.071 million in 1H13 to €19.606 million in 1H14. However, if nonrecurring costs from 2013 are not taken into account then EBITDA would have fallen by 13% rather than 18.5%.
Tunisia proved a mixed bag for the group in 1H14. EBITDA contracted for Sotacib, coming in at €1.818 million. However, Sotacib Kairouan experienced an 8% rise in cement sales and a 35.7% increase in EBITDA.
Cementos Molins S.A. has informed the Comisión Nacional del Mercado de Valores that it intends to increase its presence in Latin America, beginning with Bolivia. In an agreement with Votorantim Cimentos, and via Spain’s Yacuces, the group plans to acquire a 66.7% stake in the Bolivian cement manufacturer Itacamba Cementos S.A. The purchase price is US$18.6 million. The remaining 33.3% will be held by local firm Companía de Cemento Camba S.A. (COCECA). Itacamba Cementos operates a cement mill in Germán Busch. It is also investing US$22 million on the construction of a 900 000 tpa plant over the next two years.
Edited from various sources by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/01082014/cementos-molins-1h14-results-and-bolivian-expansion-223/