Grupo Cementos Portland Valderrivas’ EBITDA increased by 178% in 1Q14

Financial results

Spain’s Grupo Cementos Portland Valderrivas has announced its results for 1Q14. The company’s EBITDA increased from €5.6 million in 1Q13 to €15.6 million in 1Q14, up 178% y/y. Income before taxes improved by 19% y/y from a loss of €43.1 million in 1Q13 to a loss of €34.7 million in the corresponding period in 2014. Turnover reached €111.3 million, which includes €43.2 million from the group’s Spanish operations and €68.1 million from its operations overseas. This represents a decline of 8.6% y/y, a result of lower sales volumes in the US and the gradual sale and liquidation of unprofitable concrete, mortar and aggregate businesses. However, the negative impact of these factors was somewhat offset by rising cement prices in Tunisia.

Cement sales

During the quarter, the group saw its cement sales volumes increase by 1% y/y. In Spain, as reported by Spanish cement association Oficemen, domestic cement consumption declined by 2.2% y/y in 1Q14. Although there were steep declines in January and February, a more positive trend was seen in March 2014.

In the US, the group’s cement sales dropped by 11% y/y. This has been attributed to poor weather conditions over the winter, particularly in the northeast of the country.

Grupo Cementos Portland Valderrivas’ cement sales volumes in Tunisia remained in line with 1Q13 at 0.4 million t. Activity in the Tunisian construction sector was buoyant during the first three months of 2014.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/europe-cis/02052014/cementos_portland_valderrivas_1q14_results_133/