The Board of Directors of Cementir Holding N.V. have examined and approved the consolidated unaudited results for the first nine months and the third quarter of 2020.
- Revenue: EUR 896.8 million (EUR 906.1 million in the nine months of 2019).
- EBITDA: EUR 178.1 million (EUR 181.8 million in the nine months of 2019).
- Profit before taxes: EUR 81.2 million (EUR 83.7 million in the nine months of 2019).
- Net financial debt: EUR 218.5 million (EUR 346.3 million at 30 September 2019).
“In the first nine months of 2020, despite the serious pandemic, the Group reported a 11.3% increase in cement volumes sold, marginally decreasing revenues and an EBITDA down by 2.1% compared to in the first nine months of 2019. Results significantly improved in the third quarter, with cement volumes sold up 19% and EBITDA up 12% on the third quarter of 2019 " commented Francesco Caltagirone Jr, Chairman and Chief Executive Officer.
During the first nine months of 2020, cement and clinker sales volumes, reached 7.7 million tonnes, up by 11.3% compared to the same period of 2019. The increase is mainly attributable to performance in Turkey. Sales volumes of ready-mixed concrete, equal to 3.1 million cubic metres, were up by 2.0% mainly due to the increase in Turkey and, to a lesser extent, in Denmark and Sweden.
In the aggregates segment, sales volumes amounted to 7.0 million tonnes, down by 4.1% as a result of the performance in Belgium.
Group revenue reached EUR 896.8 million, down 1.0% compared to EUR 906.1 million in the first nine months of 2019.
At constant 2019 exchange rates, revenue would have reached EUR 921.1 million, up by 1.6% on the previous year.
Operating costs, equal to EUR 720.3 million, showed a decrease of 2.2% compared to 2019 (EUR 736.5 million in the first nine months of 2019). The contraction is due to cost containment measures implemented to deal with the impact of the pandemic.
The cost of raw materials reached EUR 341.4 million (EUR 346.6 million in the first nine months of 2019), down due to the reduction in the unitary cost of raw materials.
Personnel costs amounted to EUR 139.2 million, down compared to EUR 141.2 million in the first nine months of 2019.
Other operating costs totalled EUR 239.7 million, compared to EUR 248.7 million in the same period in 2019.
EBITDA reached EUR 178.1 million, down 2.1% on EUR 181.8 million in the first nine months of 2019. At constant exchange rates with the previous year, EBITDA would have reached EUR 178.4 million. This amount includes non-recurring charges for EUR 5.6 million related to the disposal of some equipment in Turkey and the execution of a settlement. Excluding non-recurring charges, EBITDA would have increased by 1% compared to 2019.
The EBITDA margin was 19.9% substantially in line with the 20.0% in the first nine months of 2019.
EBIT, taking into account EUR 80.4 million of amortization, depreciation, impairment losses and provisions (EUR 78.4 million in the first nine months of 2019), amounted to EUR 97.7 million, down 5.6% compared to EUR 103.4 million in the first nine months of the previous year. Amortization, depreciation, write-downs and provisions include EUR 0.4 million for fixed assets impairment and EUR 0.6 million for risk provisions. There are no inventory impairment losses or risks provisions as a consequence of the Covid-19 pandemic.
At constant exchange rates with the previous year, EBIT would have reached EUR 96.3 million.
The share of net profits of equity-accounted investees was positive for EUR 0.3 million, unchanged from the first nine months of 2019.
Net financial expense was EUR 16.7 million (expense of EUR 20.1 million in the first nine months of 2019). The result includes both EUR 6.0 million negative impact from exchange rates compared to a EUR 3.4 million charge recorded last year and the impact of some hedging derivatives.
Profit before taxes was EUR 81.2 million, a decline of 2.9% on EUR 83.7 million in the first nine months of 2019.
Industrial investments in the period reached EUR 39.0 million (EUR 42.6 million in the first nine months of 2019), while investments booked in accordance with IFRS16 reached EUR 23.7 million (EUR 19.6 million in the first nine months of 2019).
Net financial debt as at 30 September 2020 was EUR 218.5 million, a drop by EUR 127.8 million compared to EUR 346.3 million as at 30 September 2019. The debt position due to accounting standard IFRS 16 was equal to EUR 85.2 million compared to EUR 83.1 million as at 30 September 2019. Excluding IFRS, net financial debt declined by EUR 129.9 million.
The decrease in net financial debt with respect to 31 December 2019 is equal to EUR 21.1 million. Such change was due to net working capital dynamics, dividend distribution for EUR 22.2 million as well as the settlement of previous transactions, as reported in the first quarter of the year.
Total equity as of 30 September 2020 amounted to EUR 1,153.6 million (EUR 1,181.6 million as at 31 December 2019).
Read the article online at: https://www.worldcement.com/europe-cis/12112020/cementir-holding-board-of-directors-approves-consolidated-results-as-of-30-september-2020/