Skip to main content

Titan Cement first half financial results

Published by
World Cement,

Titan Group delivered an improved set of results in the first half of 2016, primarily due to the increased contribution from US operations as well as the improved results generated in Egypt. Consolidated turnover reached €723.8 million, posting a 7.6% increase compared to the first half of 2015. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 13.5% reaching €119.5 million. Net profit after minority interests and the provision for taxes stood at €9.2 million compared to €24.2 million in the same period the previous year. Bottom line results were negatively impacted by foreign exchange translation effects, particularly those resulting from the devaluation of the Egyptian pound against the Euro by 16%.

Group turnover for the second quarter of 2016 declined marginally by 0.8% reaching €386 million, while EBITDA declined by 7.2% to €76.2 million. Net profit after minority interests and the provision for taxes increased by 58.4% reaching €27.8 million versus €17.6 million in the second quarter of 2015.

Construction activity in the US continues to record healthy growth rates, more evidently so on the East coast where TITAN is present. The marked increase in demand coupled with the benefits accrued from the extensive investments undertaken by the Group, have resulted in a significant improvement in results.Group turnover in the US for the first half of 2016, increased by 18.8% reaching €372.6 million while EBITDA increased by 24% to €52.2 million.

Second quarter results were negatively impacted by the scheduled lengthy maintenance period undertaken at the Florida plant.

In Greece, demand for building materials in the first half came mostly from public works since private construction continues to be penalised by the financial crisis and recording declines. It should be noted, that sales volumes to the Greek market correspond to less than 7% of Group sales.

Exports, which continue to absorb more than 2/3 of the production of Greek plants, mitigate to a certain extent the decline in demand in the domestic market.

Group turnover in region Greece and Western Europe in the first half of the year, declined by 9.1% and stood at €133.4 million. EBITDA declined by 29.7% compared to the first half of 2015 and stood at €19.7 million.

The markets of Southeastern Europe provided a mixed picture. Demand in the region as a whole posted an increase compared to 2015 activity levels. Group turnover for the first half increased by 6.7% and stood at €97 million while EBITDA increased by 3.9% to €26.2 million.

In Egypt, demand increased in the first half of 2016. Group plant production levels have reverted to levels similar of the pre-fuel crisis years. Investments in solid fuels mills on both lines at the Beni Suef plant have been concluded since the end of March, thereby allowing for a gradual decrease in costs. Work on ensuring the energy self-sufficiency of the Alexandria plant is currently under way and should be concluded within 2016. Results in Egypt in the first half recorded a significant improvement, despite the devaluation of the Egyptian pound in March 2016. Group turnover in the first half recorded an 11.7% increase in local currency, but a marginal decline of 0.6% in Euro-terms, reaching €120.9 million. EBITDA stood at €21.4 million more than doubling over the corresponding period in 2015 (€10 million).

In Turkey, results at Adocim (in which ????? Group holds a 50% stake) were better than those of the previous year, contributing €2.2 million to TITAN earnings.

Capital expenditure in the first half of 2016, reached €61.1 million, €20.5 million lower than that of the corresponding period in 2015. Most of the investments pertained to development activities in the US and to securing the energy self-sufficiency of the plants in Egypt.

In June 2016, TITAN GLOBAL FINANCE Plc issued a 5-year, €300 million bond, with a coupon of 3.5%. €109 million from the proceeds were used to purchase outstanding Guaranteed Notes due in January 2017 pursuant to the tender offer memorandum dated 6 June 2016. The balance of the proceeds will be used to redeem the remaining 2017 Notes at maturity and for general corporate purposes of the Group.

Group operating cash flow in the first half of 2016, reached €67 million, versus an outflow of €21 million in the same period the previous year, owing to the improved profitability of the Group, the considerable decline in working capital requirements and the overall lower level of investments undertaken. As such, Group net debt as at 30 June, 2016, stood at €578 million, €44 million lower compared to 31 December 2015 levels.

On 7 June 2016, rating agency Standard & Poor’s affirmed TITAN’s ‘??’ ratings, maintaining its positive outlook, focusing on the Group’s strong liquidity position.

Adapted from press release by Joseph Green

Read the article online at:

You might also like


KHD Technical Webinar Series

Over the coming weeks, World Cement will be hosting a series of technical webinar presentations from KHD! Each presentation will be led by industry experts and provide a detailed discussion of KHD’s product offerings to the cement industry.

Find out more and register for the series »


Martin Marietta increases quarterly cash dividend

The company has announced that its Board of Directors approved a 4% increase in its quarterly cash dividend, raising it from US$0.55 per share to US$0.57 per share on the company’s outstanding common stock.


Embed article link: (copy the HTML code below):