Titan Cement posts record 2021 revenues

The group says the figures reflect higher demand and a supportive pricing environment. Due to the unexpected spike of input costs in the second semester and despite pricing initiatives that partly alleviated the burden, EBITDA (earnings before interest, tax, depreciation and amortisation) declined by 4.6% to €272.4m.

Net profit after taxes and minorities (NPAT) climbed to €89.6m (vs €1.1m in 2020 and €50.9m in 2019). Titan says this significant increase was the result of lower finance costs, more favourable FX movements and a lower effective tax rate. It notes that in 2020 there were €63.9m one-off charges related to Egypt.  
It adds that, thanks to a successful refinancing strategy the group lowered significantly its finance costs for a third consecutive year to €33.6m (€19.0m lower than 2020 and €30.0m lower than 2019).

Titan says that delivery was strong across all group markets. US operations saw sales revenue at record levels thanks to growing demand, underpinned by healthy macroeconomic conditions.

In Greece, the market continued its positive performance, lending further support to the belief that demand is solidly in the upward path of the business cycle. In Southeastern Europe performance was robust.

Performance in the Eastern Mediterranean turned positive, thanks to the mix of demand pick-up and better pricing dynamics in Egypt, while in Turkey, despite
the volatile economic situation, the Group recorded revenue growth as well. Titan adds that its Brazilian operations continued to grow significantly.

Trends in domestic sales volumes were positive across all regions, which Titan says testifies to strong market fundamentals. At group level, volumes increased across all product lines: cement, ready-mix concrete, aggregates, building blocks and fly ash. Group cement sales increased by 7% compared to 2020, reaching 18.3 million tons, with US being themain contributor of this increase.

Ready-mix concrete sales increased by 2% in 2021, reaching 5.5 million m3 on the back of stronger sales in US and Greece. Aggregates' sales increased by 1% reaching 20.2 million tons, thanks to the strength of the Greek market.

Revenue in the fourth quarter of 2021 was also the best ever Q4 for the group. All geographies recorded top line growth and group revenue grew by 11.7% reaching €451.8m.

Titan says the Q4 revenue growth reflects the strong recovery of economic activity and a rise in public and private investment amidst a low interest rate environment. At the same time EBITDA in the quarter declined by 7.1% to €52.8m, reflecting the surge in fuel and electricity costs and increased freight rates.

Net profit for the quarter was €7.6m against the loss of €56.4m in the last quarter of 2020 (resulting from the impairment charge and derecognition of deferred tax assets in Egypt).

In terms of the outlook going forward, Titan says the current military conflict after the Russian invasion in the Ukraine creates geopolitical uncertainties with macroeconomic implications the extent of which cannot yet be assessed.

Titan Group has no exposure to Ukraine, Russia or affected regions. Nevertheless, the group says the effect on its businesses from developments in the energy sector and the broader macro implications are anticipated to impact market trends and further increase inflation risks.