Cementir Holding (CEM) H1 2024 earnings summary

Executive summary

• First half 2024 results aligned with management expectations, with overall volumes up year-on-year, but lower revenues and EBITDA, and higher net profit compared to the same period last year.

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

• Revenues 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.

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

Financial highlights

• Revenues reached €811.8 million, down 3.4% year-on-year; non-GAAP revenues at €803.3 million, down 7.5%.

• EBITDA was €192.7 million, down 3.9% year-on-year; non-GAAP EBITDA at €181.9 million, down 10.1%.

• Group net profit rose to €97 million, up 7.4% year-on-year; non-GAAP net profit at €102.2 million, down 6.9%.

• Net cash position improved to €55.4 million, up €44.5 million year-on-year, despite higher dividends and extraordinary investments.

• EBIT was €125.2 million, down 9.7% year-on-year; non-GAAP EBIT €120 million, down 16.4%.

Outlook and guidance

• Revenue guidance for 2024 revised to €1.7 billion from €1.8 billion, in line with last year; EBITDA guidance remains at €385 million.

• Net cash position expected to be around €300 million at constant perimeter; CapEx guidance unchanged at €135 million.

• Planned investments for 2024 include €48 million in sustainability projects.

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

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