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Cementir reports good start to the year

Published by
World Cement,


“Results in the first half 2017 were up thanks to the effect of the acquisitions concluded in the second half 2016, which added €16.6 million to EBITDA, despite adverse changes in exchange rates. On a like-for-like basis, the improvement in EBITDA in Egypt, Italy, China and Norway partially compensated lower earnings in Turkey and, to a lesser extent, in Denmark and Malaysia, as well as the depreciation of foreign currencies against the Euro – mainly the Egyptian pound and the Turkish lira.” commented Francesco Caltagirone Jr., Chairman and Chief Executive Officer.

Sales volumes of cement and clinker in 1H17, equal to 6.4 million t, increased by 34.0%; on a like-for-like basis they were down 2.4% due to poor performance in Turkey and Malaysia, while Denmark, Egypt and China performed positively and Italy was stable in terms of cement volumes. Sales volumes of ready-mixed concrete, equal to 2.4 million m3, were up 13.3%; on a like-for-like basis they were pulled down by the fall in sales in Turkey, which was only partially offset by strong performance in Denmark, Norway and Sweden. In the aggregates sector, sales volumes were up by over 174% thanks in particular to the contribution of the Belgian business (CCB). On like-for-like basis there were in any case improvements in Denmark and Sweden.

Group revenue from sales and services totalled €631.4 million, up 31.3% compared to €481.0 million in 1H16 due to the change in the scope of consolidation, which resulted in an increase in revenue of about €157.5 million, of which €33.9 million relative to Cementir Sacci and €123.6 million relative to the Compagnie des Ciments Belges group.

Sales volumes of cement and clinker in 2Q17 increased by 40.7%; on a like-for-like basis they were essentially stable, with performance varying by geographical area: strong performance in Denmark and Egypt was accompanied by a drop in Malaysia and China, while Turkey saw a slight fall. Sales volumes of ready-mixed concrete, equal to 1.3 million m3, were up 8.7%; on a like-for-like basis they were pulled down by the fall in sales in Turkey. In the aggregates sector, sales volumes were up by over 165% thanks in particular to the contribution of the Belgian business (CCB) and good performance in Sweden and Denmark. Revenue from sales and services totalled €351.5 million, up 29.9% compared to €270.6 million in 2Q016 as a result of the change in the scope of consolidation, which had an effect of €89.2 million (of which €19.0 million from Cementir Sacci and €70.2 million from the CCB group). On a like-for-like basis, revenue fell 3% compared to 2Q16, due to the negative impact of exchange-rate movements. The positive trend of revenue in Denmark, Italy and Sweden offset the fall recorded in Turkey and Malaysia and the reduction in revenue expressed in euros Cementir Holding SpA in Egypt. Revenue in Norway and the United Kingdom was essentially stable. The impact on revenue of the depreciation of the major foreign currencies compared to the euro was negative at €22.2 million. At constant exchange rates, revenue would have amounted to €303.8 million, an increase of 38% on the second quarter of the previous year.

Read the article online at: https://www.worldcement.com/europe-cis/31072017/cementir-reports-good-start-to-the-year/

 

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