Greek cement group Titan shows strong sales and EBITDA growth

Group sales increase by 31.6% to €1,661.8 million was announced by Titan for the nine months of 2022, with a strong increase of 41.8% in the third quarter compared to the corresponding period last year.

As it states in the relevant announcement, the increase in sales came from increased sales volumes and higher price levels, which offset the pressures of energy and transportation costs. A strong US dollar boosted sales growth.

GROUP RESULTS IN DETAIL

• Recovery of EBITDA in the third quarter of 2022 to €95.4 million, 23.9% higher than in the third quarter of 2021 and an improvement in profit margins compared to the previous ones
quarters. Earnings before taxes, interest and depreciation (EBITDA) in the nine months of 2022 amounted to €234.5 million, increased by 6.8% compared to 2021.
• The successful introduction of CO2-reduced products in the Americas market brought an overall increase of green products and solutions to 19% of the total sales volume.
• Investment costs for development and decarbonisation projects amounted to €158m for the first nine months.
• Accelerating the digital transformation of the manufacturing process and customer communication in the US and other key markets. This includes the application of artificial intelligence (AI) digital solutions for the predictive maintenance of the production process.
• Significant reduction of direct specific CO2 emissions by 5.5%, 90 actions underway, announcement of new CO2 targets aligned with the 1.5°C climate framework.

Also read – TITAN Group: Commits to even more ambitious CO2 reduction targets

TITAN Group – Review of Nine Month 2022 results

All the markets in which the TITAN Group operates recorded a significant increase in sales in the first nine months of 2022, thanks to high sales volumes, especially in cement, but also thanks to strong price increases. The price increases offset the continued rise in energy and transportation costs. Strong sales were boosted by strong demand in the US States in which we operate and the continued recovery in construction activity in Greece.

Very high energy costs hit the South East Europe region, affecting demand and profitability in some of our markets. Macroeconomic instability in Turkey continued with prices increasing significantly and exports from our plants remaining at high levels. Sales volumes in Egypt showed an increase while in Brazil this year they recorded a downward trend.

As a result, the Group’s sales in the nine months of 2022 recorded an increase of 31.6% and amounted to €1,661.8 million. Energy prices reached their highest levels at the beginning of the third quarter of 2022. However, the Group managed to increase prices but also to continue working to improve the energy mix contributing to the improvement of earnings before interest, taxes and depreciation (EBITDA). During the third quarter of the year, earnings before interest, taxes and depreciation (EBITDA) increased significantly by 23.9% compared to 2021 and amounted to €95.4 million, while during the nine months it increased by 6.8% compared to of 2021 and amounted to €234.5 million.

The Group’s net profits after taxes and minority rights, for the nine months of 2022 amounted to €89.1 million compared to €81.9 million in the same period of 2021, marking an increase of 8.7%.

Financing & Investments

This year’s environment is characterized by adverse external macroeconomic conditions, inflation and difficulties created by high energy prices. Despite this the Group is recording improved results and financial performance and our main priority is still to serve our customers, improve costs and strengthen our position in the main markets of operation. At the same time, we focus on investments for the digital transformation of the production process, the improvement of supply and distribution capabilities and the use of fuels with a lower carbon dioxide content.

The investment expenses of the Group during the nine months of 2022 amounted to €158.1 million and due to increased sales and inflation the working capital increased by €157.5 million.

As a result, the Group’s net borrowing at the end of the third quarter is higher by €177m compared to September 2021 while it is expected to decrease during the fourth quarter. The Group has no refinancing needs within the next two years and more than 80% of borrowings are either at fixed interest rates or with coverage of interest costs with long-term hedging operations.