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Cementir Holding releases preliminary results

Published by
World Cement,


The Board of Directors of Cementir Holding has examined the preliminary consolidated results for 2016, including the change in the scope of consolidation relating to the acquisition of Sacci and Compagnie des Ciments Belges. The complete, definitive results for 2016 are being reviewed by the audit firm and will be examined and approved by the Board of Directors in March.

Group revenue from sales and services was €1027.6 million, up compared to €969 million in 2015 due to the change in the scope of consolidation, which contributed an additional €60.5 million. Specifically, the revenues of Cementir Sacci, included in the scope of consolidation as of 29 July 2016, amounted to €21.8 million, while the revenues of the Compagnie des Ciments Belges group, included as of 26 October 2016, amounted to €38.7 million.

On a like-for-like basis, revenues were essentially stable on 2015, despite exchange-rate movements. The strong performance of operations in Scandinavian countries, with an increase in sales volumes of both cement and ready-mixed concrete, and in Malaysia (above all in export markets) offset the decrease in Italy, where cement sales volumes fell, and the fall in revenues expressed in euros in Egypt, Turkey and China, where revenues in local currency actually increased. At constant exchange rates, revenues would have totalled €1074.4 million, an increase of 10.9% compared to the previous year. Sales volumes of cement and clinker, equal to 10.1 million t, increased by 7.9% (like-for-like growth of 1.3%, driven mainly by Denmark and China) while sales volumes of ready-mixed concrete, equal to 4.4 million m3 , grew 17.9% (13.7% on like-for-like basis, driven by Turkey and the Scandinavian countries).

Cementir Holding SpA EBITDA totalled €197.8 million, up on €194.0 million in 2015. The acquisitions had an impact of €20.8 million on EBITDA: the operations of the Belgian group CCB contributed €8.6 million, Cementir Sacci posted negative EBITDA of €3.0 million, and €15.1 million are non-recurring income. It is also noted that the 2015 figure was positively affected by non-recurring items worth €15 million. At constant exchange rates, EBITDA would have been €207.7 million, up by €13.7 million on 2015. Net financial debt at 31 December 2016 was €562.4 million, up €340.4 million compared to 31 December 2015. The increase in debt is entirely attributable to outlays for the acquisitions in the period equal to about €435 million, plus capital expenditure of about €68.7 million (€61.3 million in 2015). Excluding the effects of these acquisitions, Group financial debt would have been about €162 million, beating the target for the year.

In 2017 the Group will be working on consolidating and integrating its newly acquired staff and assets and organisations, as well as developing its core business. The Group expects to record EBITDA of around €215 million. This figure incorporates the contribution of the CCB group and Cementir Sacci, as well as higher like-for-like earnings. These forecasts are based on conservative assumptions, especially as regards Turkey, where the geopolitical situation remains highly unstable, with possible repercussions also for the Turkish lira. In view of all the average exchange rates for the year 2016, the effect on the Group of the assumptions on exchange rates for 2017 can be quantified at a reduction in EBITDA of about €15 million. The Group expects to see higher sales volumes of cement (especially in Egypt, Scandinavia and Italy), ready-mixed concrete (in particular in Turkey, Scandinavia and Italy) and aggregates, driven mainly by the acquisition in Belgium, which has increased the Group’s exposure to the aggregates segment. The Group also expects to achieve efficiencies on sales and fixed costs driven by the integration of the Italian companies (Cementir Italia and Cementir Sacci). These upsides are however mitigated by the higher costs of solid fuels and the negative effect of some exchange rates (especially the Turkish lira and the Egyptian pound). Capital expenditure is forecast at approximately €92 million, mainly allocated to maintenance activities and including the newly acquired companies. Cash generation is expected to leave us with net financial debt of around €530 million at the end of 2017.

“Strong performance in the Scandinavian countries and Malaysia have substantially offset lower earnings in Turkey, Egypt and Italy. Also, Group results have been negatively affected by the depreciation of the Turkish lira and, since the Brexit vote, the British pound, together with the fall in the value of the Egyptian pound and geopolitical events in Turkey and Egypt. The cash flow generated by operations and control of working capital allowed us to end the year with net financial debt of €562.4 million, which was better than forecast,” commented Francesco Caltagirone Jr., Chairman and Chief Executive Officer.

Read the article online at: https://www.worldcement.com/europe-cis/14022017/cementir-holding-releases-preliminary-results/


 

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