The Board of Directors of Cementir Holding N.V. recently examined and approved the consolidated unaudited results for the first quarter of 2023.
- Revenue: €414.8 million, up 14.5% on €362.3 million in the first quarter of 2022; Non-GAAP Revenue were €413.8 million (+14.2% on 2022)
- EBITDA: €81.2 million, up 33.8% on €60.7 million in the first quarter 2022. Non- GAAP EBITDA was €85.6 million (+41.1% on 2022)
- Profit before taxes: €63.9 million, +50.7% on €42.4 million in the first quarter 2022. Non-GAAP profit before taxes was €68.3 million (+61.1% on 2022)
- Net financial debt: €32.1 million (net cash of €95.5 million at 31 December 2022)
- Targets for the year are confirmed
“The first quarter of 2023 ended with results in line with our expectations, with a growth in revenue and EBITDA, thanks to careful management of energy costs, which increased further as well as the costs of raw materials and personnel and despite the weakness of some markets” commented Francesco Caltagirone Jr, Chairman and Chief Executive Officer.
The following comments refer to the consolidated income statement of the first quarter of 2023 excluding IAS 29 impacts in Tu¨rkiye. This representation allows a better comparison of Group’s performance with respect to the same period of the previous year.
In the first three months of 2023, cement and clinker volumes sold, equal to 2.3 million tonnes, decreased by 4% compared to the same period of 2022. The decline is attributable to the slowdown in the market, mainly in Denmark, Belgium and the United States, despite the increase recorded in Tu¨rkiye. Sales volumes of ready-mixed concrete, equal to about 1 million cubic metres, have fallen by 9.7% due to the negative trend in all areas with the exception of Tu¨rkiye.
In the aggregates sector, sales volumes reached 2.1 million tonnes, down 18.1% due to the decline in Belgium, Sweden, Denmark and Tu¨rkiye.
Group revenue from sales and services reached €413.8 million, up 14.2% compared to €362.3 million in the first quarter of 2022. The increase in revenue is mainly due to price increases, offsetting higher costs for fuel, electricity, raw materials, transport and services. It should be noted that at constant 2022 exchange rates, revenues would have reached €445.5 million, 23.0% up on the same period last year.
At €342.5 million, operating costs increased by 2.8% compared to €333.1 million in the first quarter of 2022.
The cost of raw materials, equal to €192.9 million, increased by 5.5% compared to €182.8 million in the first quarter of 2022, as a result of the generalised increase in the price of energy sources on international markets.
At €51.6 million, personnel costs increased by 5.8% compared to €48.8 million for the same period in 2022.
Other operating costs, equal to €98.0 million, fell by 3.4% compared to €101.5 million in the first quarter of 2022.
EBITDA reached €85.6 million, an increase of 41.1% compared to €60.7 million in the first quarter of 2022, due to better results achieved in the Nordic & Baltic area, Tu¨rkiye, Belgium and Egypt, whereas the United States and Asia Pacific saw a contraction in results.
The EBITDA margin was 20.7%, compared to 16.7% in the first quarter of 2022.
At constant 2022 exchange rates, EBITDA would have amounted to €90.9 million, up 49.8% year-on-year.
EBIT, taking into account depreciation, amortization, write-downs and provisions of €29.5 million (€27.8 million in the first quarter of 2022), amounted to €56.2 million compared to €32.9 million in the same period of the previous year. Amortisation, depreciation, impairment losses and provisions include amortisation and depreciation due to the application of IFRS 16 of €7.9 million (€7.1 million in the same period of 2022).
At constant 2022 exchange rates, the EBIT would have amounted to €60.4 million.
The share of net profits of equity-accounted investees is negative by €0.2 million (marginally negative in the first quarter of 2022).
Net financial income of €12.4 million (income of €9.5 million in the same period of the previous year), comprises net financial expenses of €2.1 million (€1.3 million in the same period of 2022), net foreign exchange income of €13.6 million (net foreign exchange income of €10.9 million in the same period of 2022) and the effect of the valuation of derivatives.
Profit before taxes was €68.3 million, an increase of 61.1% on €42.4 million in the first quarter of 2022.
During the first quarter of 2023, the Group made total investments of approximately €41.7 million (EUR 24.9 million in the first quarter of 2022), of which approximately €18.8 million (€7.0 million in the first quarter of 2022) in connection with the application of IFRS 16.
Net financial debt at 31 March 2023 was €32.1 million, a reduction of EUR 56.6 million compared to €88.6 million on 31 March 2022, and includes the distribution of dividends of EUR 28.0 million in May 2022. These amounts include €82.5 million due to the application of IFRS 16 (€75.3 million at 31 March 2022).
The negative change compared to net cash of €95.5 million as at 31 December 2022 is due to the seasonality of the business in the first quarter, the annual maintenance cycle and the working capital dynamics.
Total equity as at 31 March 2023 amounted to €1551.1 million (€1,522.8 million as at 31 December 2022).