The profit rise represents a €31mn improvement against a €15.8mn loss in Q1 2020 (which included €9m one-off mark to market losses on US$ interest rate hedges).
Titan Group consolidated revenue reached €371 million in the first quarter, down 3.6% year-on-year, penalised by the weaker US$ and US$ linked currencies against otherwise solid organic growth trends. Revenue growth was 3.2% in local currencies. Titan's progressive normalisation of conditions amidst the Covid-19 context, the Group's operational agility and deferred maintenance work in the US resulted in EBITDA growth to €56.1mn vs €40.6mn in 2020. On a comparable basis, Q1 2021 EBITDA would be about US$10mn lower to account for the estimated maintenance cost deferred to Q2.
Titan saw robust demand in the US during Q1 2021, particularly during March, solid market trends in Southeastern Europe, a continuation of healthy market development in Greece and some improvement in the Eastern Med.
Sales volume trends were positive across all Titan product lines. Group cement and clinker sales increased by 3%, supported by higher demand across most markets. Aggregates and ready-mix sales volumes increased by 3% and 1%, respectively.
In Greece, the encouraging trends recorded in 2020 have continued into 2021. The market is continuing to grow, and Titan sales were up in Q1 2021 versus Q1 2020. The Group's domestic market is being driven by many peripheral construction projects and private investments.
Exports to the Group's European terminals also increased during the quarter, testifying to broader pick up of activity in Europe. Export sales denominated in US$ were, however, penalised by the weaker US$ and were lower compared to the previous year. Total revenue for region Greece and Western Europe in Q1 remained stable at 0.9%, reaching €57.9mn. On the operating level, EBITDA reached €6.8mn versus €1.4mn in Q1 2020, mainly due to an improved sales mix.
Southeastern Europe continued delivering solid pricing and volumes against a backdrop of construction confidence in the region. Higher maintenance costs and energy costs spikes in the quarter curtailed profitability. Revenue for the region increased by 2.2% to €49mn, while EBITDA declined by €0.7mn to €11.3mn compared to the first quarter of the previous year.
In Egypt, Titan's Q1 2021 sales volumes were flat at Q4 2020 levels, starting with lower sales in January and February. By March, however, the market witnessed an uptick in both volumes and prices, which continued in April.
Turkey once again recorded growth in domestic sales and prices, with notable regional differences across the country. Drivers of consumption were private housing and small-scale business and industrial projects. As the Turkish lira lost 32% of its value vs the Euro between Q1 2020 and Q1 2021, the improved performance of the Turkish operations had a limited impact on Group profitability. Total revenue in the Eastern Mediterranean reached €37.7mn, a decline of 9.3% year on year, though at +3.9% in local currency. EBITDA turned positive at €0.2mn in the quarter versus a €0.4mn loss in Q1 2020.
The market in the North East of Brazil grew by 18% in the quarter, confirming the momentum witnessed in 2020. Sales of Titan's joint venture, Apodi, increased based on stronger demand coming from the residential and commercial sectors. In Q1, Apodi posted an increase in revenue to €18.3mn (vs €16.3mn in 2020) as well as in EBITDA at €4.9mn vs €2.5mn in 2020, despite the weakening of the local currency.
Assessing the Group's full-year 2021 trading prospects, a Titan statement said: "The market trends and developments in the first quarter of the year, confirm that market fundamentals remain promising, and the key drivers of demand are in place to support operational growth in 2021 and beyond. At the same time, in 2021, we face headwinds in terms of energy, commodity, and logistics costs. Titan America's solid backlogs and the growth of the US economy point to rising activity levels and profitability.
"Titan's other markets also demonstrate positive trends and improving prospects. As economies reopen and confidence returns with the improving health situation across our markets, as the pace of vaccinations picks up, we maintain our positive outlook for the year as released with our full-year 2020 results."
