Titan (Q1 Results): The company announced a mixed set of results

Titan (Q1 Results): The company announced a mixed set of results considerably boosted after EBITDA line by the strengthening of the US$ and the Egyptian Pound versus the Euro which accounted for an FX impact of €27m vs FX losses €0.3m. In specifics:

 manos chatzidakis

¡  Consolidated turnover reached €283.8m, posting a 12.7% increase compared to the first quarter of 2014. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) declined by 23.7% to €23.2m. Net profit after minority interests and the provision for taxes grew to €6.6m versus an €11m loss recorded in the corresponding quarter the previous year. The continuing recovery in the USA (Turnover +37.5%, EBITDA +544%) and the stabilisation in the Greek market (Turnover -1.9%, EBITDA +135%) due to the continuation of public works and the higher profit margins on exports, had positive effects on operating results. On the other hand, profitability declined significantly in Southeastern Europe (Turnover -31.1% EBITDA-57.1%) and Turkey due to the heavy winter, as well as in Egypt (Turnover +21.8%, EBITDA -75.7%), where prolonged gas shortages necessitated the production of cement through imported clinker in order to meet domestic demand.

¡  Group net debt at the end of the first quarter stood at €660m, increased by €119m compared to year-end 2014. Group debt levels reflect the increased investments undertaken primarily in the USA and in Egypt, increased working capital requirements in growth markets, the seasonality in demand, as well as the negative effect on US$- and Egyptian pound-denominated debt owing to foreign exchange movements. In terms of the cash reserves, management stated in the conference call that that out of EUR 138mn available just EUR 12mn are placed in the Greek banking system.

¡  Group capital expenditure in the first quarter of 2015, excluding acquisitions and intangible assets, stood at €35m versusι €14m in the corresponding period in 2014.

¡  In February 2015, Group subsidiary Alvacim Ltd purchased the 20% stake held by the European Bank for Reconstruction and Development (ΕBRD) in ANTEA CEMENT SHA (ΑΝΤΕΑ), a Titan Group subsidiary in Albania. As a result of this purchase, Titan Group holds 80% of ANTEA’s share capital, whereas the remaining 20% is held by the International Finance Corporation (IFC).


ΤΙΤΑΝ 2013 2015 Y-o-Y 2015 Act. vs
EUR m. Q1 Q1 (Α) (%) Q1 (Ε) Est.
Sales 251,8 283,8 12,7%  273,6 3,7% 
EBITDA 30,5 23,2 -23,7%  25,7 -9,5% 
EBITDA Mrg 12,1%  8,2%  -391 bps  9,4%  -12,8%
Net Income -11,0 6,6 160,4%  3,9 71,8% 
Net Mrg -4,4%  2,3%  +671 bps  1,4%  65,6%