Cementir Holding (CEM) H2 2023 earnings summary

Executive summary

• 2023 set records for EBITDA and net cash despite lower revenue and sales volumes; improved operating efficiency offset volume weakness and currency effects.

• The 2024-2026 plan targets ~€2.0bn revenue, ~€425m recurring EBITDA and ~€600m net cash by 2026.

Financial highlights

• Reported 2023 revenue was €1,694.2m, down 1.7% YoY; non-GAAP revenue was €1,694.6m, down 1.5%. At constant 2022 exchange rates, revenue rose 10.5% to €1,901.5m.

• Reported EBITDA was €411.1m, up 22.6%; non-GAAP EBITDA was €421.9m, up 25.4%. Excluding €11.6m of non-recurring income, EBITDA was €410.3m, up 22.0%.

• EBIT was €278.3m, up 36.2%, and profit before taxes was €290.7m, up 23.0%; non-GAAP EBIT and profit before taxes each rose 39.3%.

• Net cash at 31 Dec 2023 was €217.6m, versus €95.5m a year earlier.

Outlook and guidance

• 2024 guidance: revenue ~€1.8bn, EBITDA ~€385m, year-end net cash ~€300m and capex €135m; guidance is on a like-for-like ongoing-operations basis, non-GAAP and excludes extraordinary items.

• 2026 targets: revenue ~€2.0bn, recurring EBITDA ~€425m, EBITDA margin 21.3% and net cash ~€600m; net cash/EBITDA target is ~1.4x.

• The plan targets 2023-2026 revenue CAGR of 5-6% and EBITDA CAGR of 1.2%; 2026 EBITDA reflects a high 2023 base and mean reversion after the 2022-2023 spike.

• Average annual capex for 2024-2026 is €112m, including €100m of cumulative sustainability investment.