The Greece-headquartered group’s revenue for full-year 2020 totalled €1,607m, down by just 0.2% on €1,609.8m figure for 2019.
EBITDA (earnings before interest, taxes, depreciation and amortisation) was up 7.1% to €286.2m in 2020, the highest level since 2010. Titan says this figure benefited from resilient markets and healthy sales volumes, tight cost control and a favourable energy cost environment.
Net profit after taxes (NPAT) was down by 97% from €50.9m in 2019 to €1.5m in 2020. Titan says the fall was as a result of €63.9m of non-cash charges related to Egypt, with Egypt goodwill of €46.6m fully written off and €17.3m of deferred tax assets were derecognised. It adds that, had these one-off charges not been taken, NPAT would have been €65.4m.
The group said it saw strong cash flow generation in 2020, and group net debt decreased by €155.2m to €684.4m at the end of the year.
Titan says the impact of the Covid-19 pandemic on the group was less severe than was initially expected. Overall construction activity escaped the full brunt of the downturn, being allowed to continue as an essential activity in most of Titan's countries of operation.
The group says performance in 2020 was supported by resilient sales volumes across most of its markets. In the US, sales were sustained at high levels along all product lines. In Greece, demand showed further recovery. In Southeastern Europe, performance was robust, while Turkey posted strong domestic and export growth, and demand also improved in Brazil. Performance in Egypt was disappointing due to the ongoing challenges of that market. Pricing dynamics in most of Titan's markets benefited from resurgent levels of demand. The favourable energy cost environment combined with successful management of the group’s cost base, enhanced profitability.
Titan has set an ambitious CO2 reduction goal for 2030 aligned with the vision of the European Green Deal to achieve climate neutrality by 2050.
Dimitri Papalexopoulos, chairman of Titan's group executive committee, commented: "In 2020, we delivered strong financial performance while taking care of our employees and those around us, ensuring high-quality, uninterrupted customer service and accelerating progress towards our digital and sustainability aspirations. In the face of uncertainty caused by COVID-19, we remained confident in our business model. We adapted to shifting market conditions."
