In This Article:
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cementir Holding NV (STU:3PC) achieved a revenue of 1.68 billion in 2024, showing a slight increase year-on-year.
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The company reported an increase in cement volumes by 0.5% and aggregates by 7.1%, driven by growth in Turkey, Denmark, and Sweden.
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Cementir Holding NV (STU:3PC) has set aggressive CO2 reduction targets, aiming for a 42% reduction in CO2 emissions by 2030.
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The company announced one of the largest onshore CCS projects in Europe, set to be operational by 2030, which will significantly reduce CO2 emissions.
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Cementir Holding NV (STU:3PC) expects a revenue increase to 1.75 billion in 2025, representing a 6% growth from 2024.
Negative Points
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The company faced strong foreign currency headwinds, particularly in Turkey and Egypt, which impacted revenues.
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EBITDA decreased by 0.9% year-on-year, with a notable decline in all regions except Turkey, Egypt, and Sweden.
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Non-recurring expenses in 2024 amounted to 4.4 million, contrasting with net non-recurring income of 11.6 million in 2023.
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The company anticipates increased electricity and fuel costs, which could impact future profitability.
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Cementir Holding NV (STU:3PC) is short of around 200,000 tons of CO2 allowances over the next three years, which could affect operational costs.
Q & A Highlights
Q: Can you explain the phasing of your EBITDA growth across the next three years, particularly the significant acceleration expected in 2026 and 2027? A: The forecast for 2025 is affected by foreign exchange views, especially for Turkey and Egypt, which together account for nearly half a billion in revenues. We have cautiously put a linear evaluation, but if the Turkish Lira devaluation aligns more closely with inflation, we might see a recalibration of around 10 million. Additionally, the new line in Egypt is expected to reach full capacity over the next two to three years, contributing to growth. - Unidentified_3
Q: Compared to the previous plan, there's an improvement in the margin. What are the reasons for this, and is it due to pricing assumptions or something else? A: The improvement is mainly due to exchange rate considerations, particularly in Turkey, which is expected to exit the hyperinflationary environment by 2026. The real profitability of the company remains unchanged, but the exchange rate impacts the reported figures. We also anticipate a mild recovery in markets like China, which should contribute to better margins. - Unidentified_3