Displaying items by tag: Results

Vietnam: VICEM Ha Tien Cement recorded a net loss of US$374m in the first quarter of 2025, down from US$952m a year earlier, despite an 11% rise in cement consumption and a 6% increase in revenues to US$61.2m, according to the Vietnam National Cement Association.

The company targets 5.83Mt of cement and 530,000t of clinker sales in 2025, aiming for US$276m in revenue and US$7.1m in profit, which it will reportedly achieve through tightening cost control and diversify output.

Saudi Arabia: Al Jouf Cement reported a net loss of US$7.39m in 2024, compared to a net profit of US$10.04m in 2023. Sales fell by 5% year-on-year to US$68.4m from US$71.8m in December 2023. In the nine months to 30 September 2024, net profit declined by 31% to US$8.17m.

It’s been a strong start to 2025 for the Brazilian cement sector. The National Cement Industry Union (SNIC) reported recently that cement sales in the first quarter of 2025 have been the strongest since 2015. Producers sold 15.6Mt in the three month period, a rise of 5.9% year-on-year from 14.7Mt in the same period in 2024.

The result has been attributed to a growing real estate market boosted by housing schemes such as the ongoing Minha Casa Minha Vida programme. SNIC also noted a growing labour market and wage increases, although sales from infrastructure projects failed to keep up. Unfortunately, SNIC is wary of whether the positive news will continue in the second half of 2025. Risks such as interest rates, growing general debt levels and the effects of any potential international trade wars all lie ahead.

Graph 1: Cement production in Brazil, 2017 - 2024. Production estimated for 2024 based on National Cement Industry Union (SNIC) preliminary data on sales. Source: SNIC.

Based on preliminary SNIC data from December 2024, the country likely had its best year in 2024 since the market peaked in the mid-2010s. Cement sales were reported to have risen by 3.9% to 64.7Mt in 2024. Consumption was 73Mt. An estimate of production based on the same rate of growth suggests that cement production may have grown to 69Mt in 2024 from 66.5Mt in 2023.

The three main cement companies - Votorantim Cimentos, InterCement and CSN - each reported domestic earnings growth in 2024. In Votorantim’s case net revenue in Brazil was flat in 2024 at US$1.39bn but its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 4% year-on-year to US$390m supported by higher prices, volumes and lower costs. InterCement has been in a debt resolution process since December 2024, which will be discussed below. Its sales volumes of cement were flat at 8.6Mt and sales revenue fell by 6.6% to US$557m. Yet, adjusted EBITDA rose by 10.2% to US$135m. CSN’s sales volumes of cement increased by 5.9% to 13.5Mt and its cement business sales revenue by 5.7% to US$810m. However, its adjusted EBITDA zoomed ahead by 39.5% to US$231m. The group attributed its higher sales volumes of cement to its strategy of focusing on logistics and distribution centres to target new markets, build market share and boost synergies.

As covered by Global Cement Weekly previously, InterCement has been trying to sell assets since at least the early 2010s. High debt levels have been a problem more recently and the company entered into judicial recovery, a court-led debt recovery process, in December 2024. How this process plays out should inform the nature of any subsequent divestment of assets. InterCement attempted to sell its subsidiary in Argentina, Loma Nega, to CSN in 2024. Unfortunately, this reportedly failed due to the appreciation of Loma Negra and due to disagreements between bondholders and shareholders of parent company Mover, according to the Valor Econômico newspaper. At home in Brazil, Buzzi, CSN, Huaxin Cement, Polimix, Vicat and Votorantim have all been linked to a potential sale of InterCement assets in a piecemeal fashion. Votorantim, in particular, is expected to face opposition from the local competition regulator CADE if it attempted to buy all of InterCement’s cement plants.

It’s positive to see the cement industry in Brazil starting to reach the sales levels last recorded in 2014. SNIC, understandably, isn't taking anything for granted. It’s warned of more modest growth in 2025, compared to the strong opening quarter, with levels forecast to be somewhere between 1 - 1.5%. It says that this will depend on the “evolution of the economy, monetary policy and investments in infrastructure and housing.” It has also warned of “uncertainties arising from the US.” The other big ‘if’ is whether InterCement can actually start selling cement plants in 2025. Time will tell.

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.”