Titan Cement International SA (Euronext Brussels, ATHEX and Euronext Paris,
TITC) announces the second quarter and half year 2022 results.
- A strong Q2 performance with 29% Revenue growth vs Q2 2021 and recovery of
profitability. Q2 EBITDA and NPAT above 2021 levels.
- Implemented price increases restored profitability as they caught up with cumulative cost
- Group revenue growth 26% in H1 2022, with sales exceeding €1 billionn (€1035.5 million) as a series of price actions since late 2021 took effect. Strong USD added to growth.
- Q2 EBITDA at €92.7 million was 7% higher than Q2 2021 while H1 2022 EBITDA at €139.1 million was 2.5% below H1 2021
- IAS 29 hyperinflation accounting was applied in Turkey inflating non-monetary items. The
goodwill gain was reversed through impairment.
- Digital end-to-end Real-Time Optimisers (RTOs) in cement manufacturing completed in
both US plants leading to higher output, reduction in costs and improved product quality
and environmental footprint.
- Significant reduction of specific CO2 emissions by 5.6% in H1 2022, compared to the same
period last year, driven by lower clinker-to-cement ratio.
- Resilience of demand in key markets leads to a cautiously optimistic outlook for the rest
of the year while uncertainties and volatility of markets continue.
Helped by stronger Q2 2022 performance, the Group’s consolidated revenue for H1 2022 surpassed the €1 billion threshold and reached €1,035.5m, up 26.1% versus the first half of 2021. This reflects solid demand across most markets coupled with price increases across countries and products. Top line growth was supported by stronger US$ and US$-linked currencies (in local currencies growth was 21.3%). EBITDA increased by 7.1% to €92.7 million in Q2, while for H1 2022 it reached €139.1 million, down by 2.5%, held back by the spike in energy costs and freight rates, as the effect of price increases was not yet fully in place in Q1. Net profit after taxes and minority interests was €43.9m in Q2, 2.9% higher than Q2 2021, while for H1 it reached €45.2 million vs €58.0 million last year, due to the weak Q1 result.
In Q2 2022, sales continued strongly in all regions of operation. The Group was able to move forward with price increases, announced at the end of 2021 and in the first half of 2022, in order to offset the continuously rising energy and input costs. The Group is constantly monitoring various input costs amidst this volatile environment and is following a dynamic pricing policy, safeguarding profitability levels.
Titan operations in Q2 2022 in the US recorded a solid performance, supporting the view that market fundamentals are well in place underpinning demand in a strong economy. In both of the Group’s main geographies demand remained at high levels. Residential build-up and continued infrastructure activity supported demand in the Mid-Atlantic, while Florida’s economy is racing ahead at full steam. Florida’s residential demand is burgeoning, while commercial resurgence reflects the move of considerable business activity to the region. A growing number of infrastructure investment programs are underway in both Florida and Mid Atlantic. Amidst this positive environment, the Group has successfully realised price increases this year and managed to
gradually restore profitability with Q2 EBITDA at €42.8 million coming close to Q2 of 2021 (€44.9 million). As the last implementation of price increases took place in June, further margin recovery is expected to materialise in Q3. Wide adoption of type IL cement and generally lower-clinker cement products improve the Group’s financial and environmental results.
Revenue in the USA recorded a 23.4% increase to €595.4 million during the first six months of 2022 (11.7% increase in US $ terms), while EBITDA reached €66.8 million versus €83.4 million, a 20% drop vs H1 2021. The discrepancy is due to the relatively delayed effect of implemented price increases compared to the earlier and persistent pressure of high input costs, such as energy, logistics, labor, and raw materials.
Read the article online at: https://www.worldcement.com/europe-cis/29072022/a-strong-second-quarter-performance-highlighted-by-hefty-revenue-growth-and-improved-profitability/