Titan Cement International SA announces net profit more than doubled year-to-date, to €198m. EPS (9 months) at € 2.64.
Specifically:
• Group Sales increased by 14% to €1,892m year-to-date driven by increased volumes in all our regions and by solid pricing levels.
• Group EBITDA at €397m year-to-date, up by 72% as Group’s margins restored. All regions recorded double-digit profitability growth on the back of increased sales volumes and pricing momentum, operational efficiencies including digitalization in manufacturing, improved energy mix and contained energy costs.
• Net profit more than doubled year-to-date, to €198m. EPS (9 months) at € 2.64.
• Leverage ratio at 1.5x and S&P credit rating revised upwards to “BB” with positive outlook. Rated “BB+” by Fitch.
• CapEx at €158m focusing on growth, energy efficiencies, and logistics infrastructure projects.
• New €20m share-buyback program to start upon the termination of the existing one.
• In Q3 the Group achieved a lower clinker-to-cement ratio (76.9% vs 78.4% last year) and a
record high alternative fuel utilization (19.1%, +2 ppts) leading to a reduction of 2.1% in net
specific CO2 emissions y-o-y.
• MSCI recognized again TITAN as a leader in ESG, granting for 3rd year the ESG rating of “AA”.
• Positive outlook maintained for the year, given the demand levels across our strategic geographical footprint along with firm pricing and further cost performance improvements.
TITAN Group - Overview of the third quarter and nine months of 2023
The Group has maintained its forward momentum in the third quarter of the year, recording strong results with Greece, the US and Southeast Europe leading the way. Sales during the third quarter grew by 5. % to €663.2m compared to €626.3m last year while EBITDA registered a significant increase of 63.6% year-over-year to €155.5m.
Higher volumes, supporting prices, operational efficiencies, better fuel mix and contained energy cost, have all factored into margin recovery. Despite some softening in energy costs such as fuels and electricity, compared to the all-time high levels experienced in 2022, cost headwinds persisted, with cost factors such as labor, raw materials, and other production costs on the rise. However, the Group’s dynamic positioning in markets exhibiting growth characteristics has upheld demand levels unabated in both Q3 and year-to-date.
As a result, Group Sales, for the first nine months of 2023, reached €1,892.2m up by 13.9% while the year-to-date EBITDA rose to €396.7m, growing by a notable 71.5% above 2022. Similarly, the Group’s nine-month 2023 net profit after taxes and minority interests (NPAT) more than doubled reaching €197.6m, compared to the €89.1m recorded in the same period in 2022.
Investments and Financing
Following strong EBITDA levels of €397m and despite high, growth-oriented capital expenditure of €158m, focusing on effective capacity expansion, production cost savings, decarbonization, digitalization and logistics projects, operating free cashflow reached €160m in the first nine months of this year compared to an outflow of €73m last year.
The Group’s Net Debt at the end of 3Q 2023 was reduced by €147m year-over-year, reaching €765m and coupled with high profitability levels, led to a Net Debt/EBITDA ratio of 1.5x, a ratio compatible with investment grade ratings. TCI was rated “BB+” by Fitch earlier this summer, while S&P also revised TCI’s credit rating to “BB” with a positive outlook” in September 2023.
