Displaying items by tag: Results

Indonesia: Semen Indonesia has blamed falling sales and earnings in 2024 on a contracting local market and increased competition. The group’s revenue fell by 6% year-on-year to US$420m in 2024 from US$449m in 2023. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 30% to US$63.9m from US$90.5m. It noted that, despite this, it managed to maintain a positive profit before tax due to lowered operating and financing costs.

Its sales volumes decreased by 6% to 38.3Mt from 40.6Mt. The group attributed a fall in demand for bagged cement nationally as a contributing factor to lowered local demand. A slowdown in several infrastructure projects, including the Nusantara Capital City, in late 2024 further added to this trend. Export sales also declined.

Belarus: Belarusian Cement Plant made a net loss of US$13.8m in 2024, according to the company’s annual report. This was a 13% increase in its loss compared to 2023. The company’s revenues reached US$163m, an 18% year-on-year rise. The company is over 99% state-owned.

Kazakhstan: Steppe Cement sold 0.28Mt of cement and generated US$12.5m in the first quarter of 2025, up by 57% in volume and 71% in revenue year-on-year. Clinker production rose by 14%, positioning the company ‘favourably’ for the upcoming busier summer months.

Kazakhstan’s cement sales rose by 20% to 2.03Mt in the quarter, while exports fell by 5% and imports, particularly from Uzbekistan and Russia, rose to account for 9% of the market.

Steppe Cement maintained a conservative outlook for the rest of 2025, citing rising inflation and ‘global developments’ as potential challenges, but expects market demand to remain around 12Mt, similar to 2024.

Europe/US: Titan Cement has reported sales of €2.64bn in 2024, up by 4% year-on-year, with growth across all product lines and regions, led by the US and Europe. The group recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of €592m, up by 10%, with gains from operating efficiencies, lower solid fuel costs and increased alternative fuel use. Net profit after tax stood at €315.3m. In February 2025, Titan completed the IPO of Titan America on the New York Stock Exchange, raising US$393m.

Sales in the fourth quarter grew by 1% year-on-year to €660m, with net profit after tax at €77.5m. Titan said it is on track to digitalise 100% of its plants by 2026.

Egypt: Misr Cement Group has announced an increase in its financial performance for 2024, reporting a net profit of US$5.4m. This represents a 136% increase year-on-year compared to 2023, when it made just US$2.3m. The company said that its growth underscored its successful cost optimisation, operational efficiency and market expansion policies, despite economic challenges.

Hassan Gabry, managing director and CEO of Misr Cement Group, said “The significant profit increase is a testament to the strength of our strategies and the efficiency of our management. We remain committed to expanding both locally and internationally while reinforcing our leadership in the cement industry across the region.”

Jamaica: Caribbean Cement Company achieved a net profit of US$37.7m in 2024, a 6.7% year-on-year increase from 2023. It reported this despite disruptions caused by Hurricane Beryl and other adverse weather conditions that affected production. The company's revenues rose by 2.3% to US$180m, driven by strong market demand.

Brazil: Votorantim Cimentos grew its revenue and earnings in 2024 but its net income dropped significantly due to interest rate volatility. It noted ‘positive performance’ in its Europe and Asia region and a stable market in Brazil. It attributed its mounting earnings to its balanced portfolio, revenue in Europe and Asia, operational efficiency, reduced costs and new business.

The group’s net revenue grew by 3% year-on-year to US$4.69bn in 2024 from US$4.53bn in 2023. However, revenue fell slightly in local currencies due to negative exchange effects, particularly in North America. Cement sales volumes rose by 1% to 35.4Mt from 34.9Mt. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 16% to US$1.14bn from US$0.99bn. Earnings rose in all regions except for Latin America due to a ‘challenging’ market in Uruguay and lower prices in Bolivia. Despite this, its adjusted net income dropped by 17% to US$383m from US$461m.

“We ended the year with record-high operating results, supported by our geographic, product and business diversification, in line with our strategic mandate,” said Osvaldo Ayres, the group’s global CEO. The company invested over US$550m in 2024 towards decarbonisation, competitiveness and new businesses. A further US$880m investment plan in Brazil to 2028 was announced in early 2024. Ongoing projects include upgrades supporting higher thermal substitution rates at the Xambioá plant in Tocantins state and the Salto de Pirapora plant in São Paulo. A new 1Mt/yr cement grinding unit is being built at the Salto de Pirapora site. Construction of this project is scheduled for completion in the second-half of 2025. A new 1Mt/yr cement grinding unit was also announced at the Edealina plant in Goiás. This project is expected to be completed in the first half of 2026.

Votorantim also revealed that it paid around US$190m to the Administrative Council for Economic Defense (CADE) at the end of 2024 in connection with an agreement to end all administrative and judicial litigation. It said “We definitively resolved all pending disputes with CADE. We did not acknowledge, at any time, having committed any unlawful act or engaged in any anticompetitive behaviour.”

Egypt: Sinai Cement reported a net profit of US$60.7m in 2024, compared to a net loss of US$2.40m in 2023. Net sales rose to US$127m in 2024 from US$84.7m in 2023. Non-consolidated net profit reached US$60.7m, compared to a loss of US$2.32m in 2023.

Bosnia and Herzegovina: Heidelberg Materials Cement BiH recorded a net profit of US$28.2m in 2024, up by 37% year-on-year. Total sales rose by 25% to US$99.9m. Domestic sales revenue increased by 30% to US$62.7m, while foreign market sales rose by 36% to US$4.5m, the company said in its annual report.

There are two new cement plant stories to note in Nigeria this week. Firstly, the Kebbi State Government has signed an agreement with MSM Cement to build a 3Mt/yr plant. Secondly, drilling work has started on a forthcoming 10Mt/yr plant to be built by Resident Cement in Bauchi State.

The project in Kebbi State appears to be a new one, although the government has been looking for investors for a while. The state government and a subsidiary of MSM Group have signed a memorandum of understanding (MOU) supporting the US$2.4bn initiative, according to local press. Alhaji Muazzam Mairawani, the chair of MSN Group, said that his company intends to develop the plant in four stages, each worth US$600m. The first stage has a schedule of production by early 2027. MSN Group started out in the fertiliser business and has since expanded into the oil and gas, shipping and agricultural sectors.

The project in Bauchi State has progressed further along and is bigger. The state government signed an MOU worth US$1.5bn with Resident Cement in mid-2024. The deal also includes a 100MW power plant, a dam and other amenities for the local community. Before the main announcement of the MOU, local press reported that Sinoma Nigeria Company was investing in the project. Subsequently, Bala Mohammed, governor of Bauchi State, said that the state owns a 10% stake in the plant.

These two new project stories follow the release of the annual reports for 2024 in recent weeks by the main cement producers in Nigeria. Global Cement Weekly touched upon this last week in its coverage of the results of major multinational building materials companies including Dangote Cement. That company’s sales revenue and earnings were boosted by growing sales volumes of cement in Nigeria. This was particularly impressive given that the country continues to face economic problems including high inflation and negative currency exchange effects. Dangote Cement said it managed to overcome these problems through “increased promotional activities and improved route to market solutions” thereby upping the market presence of its products. The company also managed to grow its exports to a record amount. It shipped 0.91Mt of clinker to Cameroon and Ghana out of a total export volume of 1.2Mt.

Graph 1: Sales revenue for large cement producers in Nigeria, 2023 - 2024. Source: Company financial reports.

It was a similar story from the two other large domestic cement companies. Lafarge Africa’s net sales grew at a similar rate to Dangote Cement in 2024 and it increased its profit after tax faster. Lolu Alade-Akinyemi, the CEO of Lafarge Africa, attributed this to the company’s “strong market positioning, operational efficiency, cost management and dedication to value creation.” BUA Cement grew its sales faster than the other two. Starting production on new production lines at its Sokoto and Obu plants is likely to have contributed to this. However, the company’s net profits rose at a lower rate than its competitors in 2024. This has been blamed on the poor market at the start of the year and negative currency exchange effects related to the loans that the company took out for its new lines.

Lafarge Africa ending on a high with its 2024 results is not surprising given that the company is currently being sold by Holcim to Huaxin Cement. The transaction is expected to close at some point in 2025. Huaxin Cement issued an update at the end of February 2025 saying that its accountants had been auditing the financial statements of Lafarge Africa. It also noted the depreciation of the Nigerian Naira in 2023 and 2024. This is all fairly standard stuff but check back later in the year to see how the sale has progressed.

The cement market in Nigeria is looking positive. New plants are on the way, the large cement producers are doing relatively well and the general economy may be improving. New entrants are also entering the market. However, consumers and legislators have increasingly questioned why the price of cement has remained so high in recent years. This continues to present a tricky situation to the market as it develops.