Displaying items by tag: Results
Pakistan: Lucky Cement’s sales totalled US$1.2bn during the first nine months of the 2023 financial year, a rise of 28% year-on-year from US$941m during the corresponding period in the 2022 financial year. The Balochistan Times newspaper has reported that Lucky Cement attributed the growth to the commencement of operations of its new subsidiary, utilities provider Lucky Electric Power. The company increased its profit after tax by 83%, to US$172m.
Lucky Cement commissioned its Pezu cement plant’s new Line 2 at the end of the second quarter of the 2023 financial year. This increased the company’s installed production capacity by 26% to 15.3Mt/yr. The producer also inaugurated a new 34MW solar power plant, and completed negotiations for another, 25MW, solar power plant at its Karachi cement plant. The latest solar power plant is scheduled for commissioning later in 2023.
India: Ambuja Cement’s sales rose by 8.4% year-on-year in the first quarter of 2023, to US$520m, from US$483m in the first quarter of 2022. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) declined marginally to US$96.4m. Costs rose by 12% to US$453m from US$404m.
During the quarter under review, Ambuja Cement made a milestone payment on an engineering, procurement and construction (EPC) contract under its planned capacity expansion strategy. It subsequently foreclosed the contract, recovering its US$222m advance, ‘in cognisance’ of on-going investigations into its parent company Adani Group.
Ambuja Cement’s chief executive officer Ajay Kapur said "We are pleased to report another strong performance of Ambuja Cement, which has been driven by our strategic initiatives on business excellence, operational efficiencies and synergies. Our focus on operational excellence and cost optimisation measures has yielded improved profitability. We have been able to maintain our growth trajectory and further strengthen our position in the market. With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well.”
India: UltraTech Cement reported revenues of US$7.48bn in the 2023 financial year, up by 21% year-on-year from US$6.18bn in the 2022 financial year. The cement producer's total expenses rose by 29% to US$6.27bn. This contributed to an 8% decline in the company's earnings before interest, taxation, depreciation and amortisation (EBITDA) to US$1.3bn from US$1.41bn.
Nigeria: Dangote Cement recorded sales of US$609m during the first quarter of 2023, down by 13% year-on-year from US$699m during the first quarter of 2022. The producer reported a 25% decline in its cement sales volumes to 3.6Mt from 4.8Mt. Operating costs rose by 6% to US$355m from US$335m. Dangote Cement said that its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 14% to US$458m from US$403m.
Dangote Cement chief executive officer Arvind Pathak said “The cash crunch coupled with the uncertainty around the general elections led to a slowdown in key private and public infrastructure investments in Nigeria. Consequently, our domestic operations recorded a drop in volume." Pathak continued “In fulfilling our commitment to creating additional value for our shareholders, we have received regulatory approval for our second buyback programme. We will continue to monitor the evolving business environment and market conditions in making decisions on tranches."
Pakistan: Thatta Cement recorded a 33% year-on-year rise in its sales during the first nine months of the 2023 financial year. It attributed the growth to a rise in cement prices. During the period, the company sold 320,000t of cement, down by 11% from 360,000t. It produced 324,000t of cement, down by 10% from 358,000t, and 309,000t of clinker, up by 18% from 262,000t. Throughout the reporting period, Thatta Cement recorded a clinker capacity utilisation of 62%, up from 53% in the corresponding period in the 2022 financial year.
India: ACC has blamed a drop in earnings in the fourth quarter of its financial year on higher fuel prices. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15% year-on-year to US$71.9m in the quarter that ended in March 2023 from US$64.7m in the same period in 2022. However, it said that fuel prices were expected to drop due to synergies with other subsidiaries within Adani Group. It is also working on reducing operational costs by reducing its clinker factor, logistics costs and growing sales of blended cement products. It added that it had reduced its kiln fuel cost by 10% in the fourth quarter by taking the measures mentioned above and by increasing its use of alternative fuels.
The company changed its financial year to one ending in March 2023 during the reporting period. Its calculated net revenue rose by 10% year-on-year to US$2.16bn for its 2023 financial year that ended on 31 March 2023 compared to US$1.97bn in the previous 12 months. Its cement and clinker sale volumes grew by 6% to 31Mt from 29Mt.
Ajay Kapur, the chief executive officer of ACC, said “Our transformation journey fuelled by sizeable operational efficiencies, improved synergies and business excellence has led to substantial improvement in our financial performance and overall business indicators. We have a detailed blueprint on each of the cost factors and initiatives to reduce and improve.”
Dalmia Bharat says commodity inflation peak ending as earnings fall in 2023 financial year
27 April 2023India: Mahendra Singhi, the head of Dalmia Cement (Bharat), says that the company has past the peak of commodity price inflation. Its income from operations grew by 10% year-on-year to US$1.66bn in the 2023 financial year from US$1.38bn in the 2022 financial year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 5% to US$283m from US$297m. Its sales volumes of cement increased by 16% to 26Mt from 22Mt.
Mahendra Singhi, the managing director and chief executive officer of Dalmia Cement (Bharat), said “Our persistent efforts, on enhancing sustainability of our operations and rationalisation of our operating costs, have enabled us to mitigate the adverse impact of inflation and deliver stable earnings performance.” He added “With robust demand outlook, steady cement prices and the peak of commodity price inflation behind us, we are expecting profitability to gradually improve from here on.”
Sustainability targets that the group promoted in its fourth quarter results statement included reaching a carbon footprint of 463kgCO2/t of cement. Its renewable energy capacity increased to 166MW in the 2023 financial year from 100MW.
CRH enjoys ‘positive’ start to 2023
26 April 2023Ireland: CRH has reported a ‘positive’ start to 2023, with first quarter sales and earnings before interest, tax, depreciation and amortisation (EBITDA) ahead of its own expectations.
In a trading update chief executive officer Albert Manifold said “We had a positive start to the year in a seasonally quiet trading period. While some adverse weather conditions were experienced in the first quarter, sales and EBITDA were ahead, underpinned by the continued execution of our integrated solutions strategy and further commercial progress across our markets.”
In its Americas Materials Solutions business unit, CRH’s sales were 10% ahead of the first quarter of 2022, driven by robust pricing which more than offset the impact of unfavourable weather on activity levels in certain markets during this seasonally less significant quarter.
In Europe, like-for-like sales were 6% ahead of the first quarter of 2022 due to strong pricing momentum across all products and regions. Activity levels were impacted by less favourable weather conditions compared to the same period in 2022. Unfavourable currency exchange effects resulted in total sales being 1% behind 2022.
Manifold added, “Looking ahead, despite some ongoing macroeconomic uncertainties and an inflationary cost environment, we expect first-half sales, EBITDA and margin to be ahead of the prior year period.”
Double-digit growth for GCC in first quarter of 2023
26 April 2023Mexico: The construction materials producer GCC reported double-digit growth in its first quarter results, driven by higher prices for its products in Mexico and the US. Its operating earnings before interest, tax, depreciation and amortisation (EBITDA) for the first three months of 2023 rose by 16% year-on-year compared to the same period in 2022 to reach US$63m, while revenues rose by 18% to US$243.9m.
"GCC delivered solid results in the first quarter," said Enrique Escalante, GCC’s chief executive officer. "High demand continues and we are leveraging all of GCC's resources to ensure we deliver the highest profits and strengthen our margins."
The growth in revenue was driven by higher ready-mixed concrete (RMC) sales volumes in the US, which were 27% higher than in 2022, and 11% higher cement and RMC volumes in Mexico. GCC also noted an increase in cement and RMC prices of 21% and 6%, respectively, in the US, while in Mexico the increases were 13% for cement and 11% for ready-mix.
Carthage Cement sees positive start to 2023
25 April 2023Tunisia: Carthage Cement saw a 35% rise in turnover during the first quarter of 2023 to reach US$37.3m. The company explained that the improvement was mainly due to a 64% increase in export turnover, which rose from US$4.0m in the first quarter of 2022 to US$6.5m in the first quarter of 2023. Local turnover was also higher, rising by 30% year-on-year to US$27.6m.