Revenue from sales and services increased by 0.7% from the same period in 2014, reaching €719.7 million, due to the good performance of operations in the Scandinavian countries and Malaysia, along with the stability of revenue in Italy, which compensated for the difficulties encountered in Turkey, Egypt and China.
Scandinavian countries posted growth in revenue of 4.9% from 2014, influenced primarily by stronger earnings in Denmark and Sweden that offset a weak performance in Norway.
In Malaysia, revenue in local currency increased by 30.6% compared to September 2014, due to the full use of the production capacity of the plant, which was increased during 2014.
In Turkey the contraction in sales volumes of cement due to weak demand in the domestic market and in the traditional export market, meant revenue dropped by 9.3% from last year.
In Egypt, revenue fell by 3.5% in local currency as a result of lower sales volumes of cement in exports markets. Thanks to the appreciation of the Egyptian Pound against the Euro however, Egypt contributes a positive €3.6 million in growth in Euros. A similar occurrences was visible in China, which contributed a positive €3.9 million towards the growth in revenue posted in the consolidated financial statements.
In Italy, revenue from sales was in line with the first nine months of 2014.
Operating costs totalled €603.7 million, an increase of 4% from 2014.
EBITDA decreased by 1.9% when compared to the same period the previous year, at only €125.3 million. This was largely a result of lower earnings in Turkey and Egypt. The EBITDA margin came to 17.4%, indicating a slight drop in profitability from 2014.
Net financial income totalled €0.6 million, a sharp increase from 2014, and was driven by the revaluation of financial instruments held to hedge commodity, exchange rate and interest rate risk, and the progressive decrease in the cost of money.
Profit before tax came to €63.6 million.
With 3Q15 being largely similar to the first half of the year, the outlook for the final quarter looks mostly unchanging. Continued positive performances are expected in Scandinavia and Malaysia, with stability in Italy, while the difficulties in Turkey, Egypt and China are also expected to remain.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/11112015/cementir-holding-nine-month-results-970/