Cimpor has reported record cement and clinker sales volumes in 1H14, improving by 10.8% y/y to reach 14.9 million t. This increase was boosted by a record 2Q14, when sales volumes totalled 7.8 million t. Sales volumes in both periods improved in all of the regional markets in which Cimpor operates with the exception of Argentina.
EBITDA for 1H14 was 1.6% higher than in the corresponding period in 2013, despite the negative impact of foreign exchange. After foreign exchange losses of €273 million and €64.7 million, turnover and EBITDA came in at €1.243 billion and €288.7 million, respectively.
In 2Q14, EBITDA grew by 24.4% y/y and turnover by 16.7% y/y. Following a loss in 1Q14, net income for 2Q14 reached a positive €10.6 million.
Sales of cement and clinker were up by 4.1% y/y in 2Q14 and by 5.8% y/y in 1H14 to reach 3.132 million t and 6.241 million t, respectively.
Sales were down by 5.5% y/y in 2Q14 and by 3.6% y/y in 1H14. The decline from last year’s figures has been attributed to record cement consumption levels in 2013, which means that the ‘market is now experiencing a correction in the volume of cement consumed’. The unfavourable economic climate in Argentina has also been cited as a contributing factor.
An increase of 23.8% y/y was recorded in Paraguay, with sales coming in at 168 000 t in 1H14. A new clinker line is scheduled for completion in 2H14, following the installation of a new mill last year.
Despite fuel supply issues in Egypt, as well as economic and social/political uncertainty, Cimpor recorded a 29.5% y/y rise in sales in 1H14 to 2.094 million t. In 2Q14 alone, cement and clinker sales volumes improved by 37.9% y/y to reach 1.1 million t.
The country’s best quarterly EBITDA result ever was achieved in 2Q14. In Africa as a whole, EBITDA grew by 23.4% y/y in 1H14 and by 43.8% in 2Q14.
Sales of cement and clinker totalled 653 000 t in 1H14 (+17.3% y/y) and 358 000 t in 2Q14 (+27.5% y/y).
An increase of 23.5% in sales volumes was reported for the first six months of 2014. Cimpor notes that, in the face of an import threat, this growth was achieved by ‘diversifying its product portfolio and broadening its customer base’.
Cape Verde and Portugal
After a slight increase in volumes in 2Q14, cement and clinker sales went on to rise by 3.5% y/y in Cape Verde in 1H14 to reach 92 000 t.
Exports helped to mitigate weak domestic demand in Portugal, with exports now representing more than 70% of Cimpor’s business in the country. Sales volumes in 2Q14 were higher than in 1Q14, and total sales improved by 19.5% y/y in 1H14.
Read the full report here.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/01092014/cimpor-releases-1h14-results-391/