Cementir Holding (CEM) H1 2024 earnings summary

Executive summary

• First half 2024 results aligned with management expectations: sales volumes up, revenue and EBITDA down, net profit improved year-over-year.

• Cement, ready-mix concrete, and aggregates volumes increased, with positive trends in Türkiye, US, and Malaysia offsetting declines elsewhere.

• Adverse weather, weak residential markets, and negative FX impacted results, but lower operating costs and cost controls provided some offset.

• Revenue and EBITDA were negatively affected by delayed infrastructure projects in Denmark and a temporary export ban from Türkiye to Israel.

• Excluding one-off items, EBITDA in H1 2024 would have surpassed the previous year.

Financial highlights

• Revenue: €811.8m, down 3.4% year-over-year; Non-GAAP revenue €803.3m, down 7.5%.

• EBITDA: €192.7m, down 3.9%; Non-GAAP EBITDA €181.9m, down 10.1%.

• Group net profit: €97.0m, up 7.4%; Non-GAAP group net profit €102.2m, down 6.9%.

• Net cash: €55.4m at June 30, 2024, up from €11.0m a year earlier, despite higher dividends and extraordinary investments.

• EBIT: €125.2m (-9.7%); Non-GAAP EBIT €120.0m (-16.4%).

Outlook and guidance

• 2024 EBITDA and net financial position guidance confirmed at ~€385m EBITDA and ~€300m net cash; revenue guidance revised down to €1.7bn, matching 2023.

• Planned investments for 2024: €135m, with €48m in sustainability projects.

• No new external financing anticipated due to strong cash generation.

• Guidance excludes potential impacts from geopolitical shocks or extraordinary events.

• Management expects stabilization or rebound in volumes in key regions in the second half, with some uncertainty due to macroeconomic and geopolitical factors.