Cementir Holding releases 2018 financial results
Published by Lucy Stewardson,
The Board of Directors at Cementir Holding SpA has examined its preliminary consolidated results for 2018. The board is chaired by Francesco Caltagirone Jr. The company has noted that the results are currently being reviewed by an audit firm and will be examined and approved by the Board of Directors at a meeting scheduled for 7 March.
The company has recorded revenues of €1196.2 million, which is up 4.9% compared to the consolidated financial statements for FY17. EBITDA is €238.5 million, which is up 7.1% compared to the consolidated financial statements for FY17. EBIT has been recorded at €153.2 million, up 9% compared to the consolidated financial statements for FY17. Net financial debt was €255.4 million, compared to €543.3 million on 31 December 2017.
The company has also noted that, in 2018, the results of industrial operations in Italy were no longer consolidated. Those that were recently acquired in the US were consolidated in full from 2Q18 onwards.
The company has reported that its sales volumes of cement and clinker during 2018 were equal to 9.8 million t, a drop of 4.4%. Under the same scope of consolidation, sales of cement and clinker were down 9%, due to a negative performance in Turkey and Egypt.
Sales volumes of ready-mixed concrete, at 4.9 million m3, were down slightly by 0.6%. The company has stated that this is due to a drop in Norway and, to a lesser extent, in Denmark and Belgium, only partially offset by growth in Turkey and Sweden.
In the aggregates segment, the company has reported sales volumes amounting to 10 million t, which is up by 7% thanks to positive sales performances in Belgium, France, and Holland.
Revenue from the sales and services of the Group amounted to €1196.2 million, which was up 4.9% compared to €1140 million in the first nine months of 2017. It is thought that this was due to the change in the scope of consolidation, which caused an increase of revenue of around €104.3 million, related to the US company Lehigh White Cement Co. (LWCC), consolidated in full as of 1 April 2018.
Revenues decreased by 4.2% on a like-for-like basis, due to the drop in sales in Egypt between February and May. It is thought that this resulted from the start of military operations in the Sinai peninsula, which led to a temporary block of production. Bad weather conditions in Norway in 1Q18 also contributed to the decrease. Revenue performance in Malaysia, Belgium, and China was positive. Conversely, the reduction in revenue in Turkey was significant, due to the unfavourable exchange rate with the euro.
The company has noted that, at constant exchange rates, revenue would have amounted to €1273.2 million, which is 11.7% higher than the previous year.
EBITDA was €238.5 million, which was up 7.1% compared to €222.7 million in 2017. The company has stated that, on one hand, the result benefitted from the contribution of LWCC for €17.1 million and the improvements in Belgium, China, and Sweden. However, on the other hand, worse results were suffered in Egypt, Turkey, and, to a lesser extent, Malaysia.
At constant exchange rates with the previous year, EBITDA would have been €258.3 million, which would be 16% higher than 2017.
EBITDA benefitted from non-recurring income (€11.5 million compared to €10.1 million in 2017), which is linked to the revaluation of non-core land and buildings in Turkey.
Considering amortisation, depreciation, and provisions totalling €85.3 million (compared to €82.1 million in 2017), EBIT amounted to €153.2 million compared to €140.6 million in 2017, benefitting €10.6 million from the contribution of LWCC.
As of 31 December 2018, the company’s net financial debt was €255.4 million, down €287.9 million compared to €543.3 million on 31 December 2017. The company has primarily attributed this change to the collection of the consideration of €315 million for the sale of the Cementir Italy Group. It was also partly compensated by a payment of US$106.6 million (about €87 million) to purchase 38.75% of LWCC, by the new working capital trend, by investments for around €67 million, and the distribution of dividends for €15.9 million in the month of May.
The company has noted that for 2018, it foresaw achieving an EBITDA of about €230 and net financial debt of about €260 million at year end.
Read the article online at: https://www.worldcement.com/europe-cis/21022019/cementir-holding-releases-2018-financial-results/
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