Italian cement manufacturing group, Cementir Holding, has approved its 2014 – 2016 Business Plan. The plan focuses on four key priorities, namely: improving the profitability of the current businesses; consolidating the Group’s leadership in the white cement market; completing investments in the Turkish and English waste management businesses; improving cash flow generation.
Cementir is forecasting revenue of around €1 billion in 2013. Under the 2014 – 2016 Business Plan, growth of an average 5% pa is targeted, bringing revenues to €1.15 billion by 2016. This growth will be achieved largely across the emerging markets, which should account for about 45% of revenue at the end of 2016. Italy is slowly returning to operating profitability, and is likely to maintain its contribution of ~13%.
Measures to boost internal efficiency and reduce operating costs are already underway and will continue to increase EBITDA in the coming years. The company also plans to increase the use of alternative fuels and renewables, another positive factor in increasing EBITDA, which will also benefit from the contribution of the waste management business. Further efforts to create a leaner, results-driven Group organization will also contribute to achieving the Plan objectives, according to the Group’s statement.
Capital expenditure is forecast to amount to €70 – 75 million per year. The net financial debt/EBITDA ratio is set to be reduced to about 0.4x by the end of 2016 through improved operating profitability, measures to contain net working capital and close control of capital expenditures.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/europe-cis/31012014/cementir_holding_targets_growth_of_5_per_cent_pa_to_2016_676/