Cementos Molins (CMO) Q2 2024 earnings summary

Executive summary

• Results continued to rise in H1 2024 despite a complex and uncertain global environment, with uneven market slowdowns and adverse weather impacting regions differently.

• Launched a unified corporate identity and the Susterra sustainable product range in May 2024, consolidating Spanish brands and advancing the sustainability roadmap.

• Net profit surged 31% to €105M, driven by operational improvements, lower financial expenses, and hyperinflation adjustments in Argentina.

• Performance remains aligned with the 2024-26 strategic plan and significant progress on the 2030 sustainability roadmap.

Financial highlights

• Sales (proportional consolidation) reached €692M, down 2% year-over-year, but up 28% like-for-like; EBITDA rose 5% to €189M, with margin up 180 bps to 27.3%.

• Net financial debt improved to a net cash balance of €91M, reflecting strong liquidity and ongoing debt reduction.

• Earnings per share increased 31% to €1.58.

• Free cash flow for H1 2024 was €97M, supporting investments in sustainability, efficiency, and digitization.

• EBITDA margin reached 27.3%, up from 25.5% year-over-year.

Outlook and guidance

• Performance is in line with the 2024-26 strategic plan, with management expecting mid-single digit market declines in H2 2024 but a high single-digit increase in EBITDA due to cost efficiency and price management.

• Sustainability targets include a 20% emissions reduction by 2030 and carbon-neutral concrete by 2050, with Susterra launch supporting these goals.

• No significant post-closing events or changes in risk management policies reported.