Cementir Holding (CEM) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 results aligned with expectations: cement (+0.6%), ready-mix (+4.5%), and aggregates (+4.9%) volumes increased, but revenues and EBITDA declined due to foreign currency headwinds and weak demand in some regions.

• Revenue declined 4.8% to €1,227.3 million (Non-GAAP); EBITDA down 10% to €289.1 million, with profit before taxes down 13.1% to €214.1 million; net cash improved to €79.9 million.

• Market turnaround signs appeared in Q3 2024 in some geographies.

• Results in line with management expectations; 2024 targets confirmed; no new external financing expected.

• The Group maintained its investment grade BBB- rating with a stable outlook and advanced its sustainability agenda, including SBTi certification and new low-carbon products.

Financial highlights

• Revenues reached €1,235.6 million, down 4.6% year-over-year; non-GAAP revenues €1,227.3 million, down 4.8%.

• EBITDA at €296 million, down 9.3% year-over-year; non-GAAP EBITDA €289.1 million, down 10%; margin 23.6%.

• EBIT at €194.5 million; profit before taxes €214.1 million, down 13.1%; net cash €79.9 million, up €34.4 million year-over-year.

• Operating costs decreased by 6.5% to €943.7 million, mainly due to lower raw material costs.

• At constant exchange rates, revenue would have increased by 5.0% and EBITDA would have declined by only 1.5%.

Outlook and guidance

• 2024 guidance confirmed: revenue around €1.7 billion, EBITDA around €385 million, net cash at €300 million, CapEx €135 million.

• Planned investments for 2024 are €135 million, with €48 million allocated to sustainability projects.

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

• Q4 expected to be in line or slightly better than last year, with full-year EBITDA possibly between €390–400 million.

• 2025 expected to see improvements in Denmark, Egypt, and other geographies, with continued softness in Belgium, France, and China.