Titan Cement: Record sales and strong profitability in 2022

Titan Cement International SA has announced its fourth quarter and full year 2022 financial results. It recorded record sales for the second consecutive year, totalling €2,282.2m and rising 33.1% year on year following a very strong fourth quarter. The US and Greece represented over 70% of Group sales.

Its Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rose to €331.2m with all regions posting double-digit profitability increases. It also saw its EBITDA margins recover with solid volumes, dynamic pricing, cost-efficiency actions, and favourable USD, which offset the sharp rise in energy and distribution costs.

It recorded a very strong Q4 2022, with EBITDA growth for the third consecutive quarter, reaching €96.7m compared with €55.6m in Q4 2021.

Earnings per share increased by 24.4%, while net profit after tax (NPAT) reached €109.7m (+19.3%), despite FX losses in Egypt. Hyperinflation accounting applied in Turkey with a practically neutral NPAT impact, after taking a €21.8m goodwill impairment charge.

Net debt closed at €797.3m (+€84m) following a record capital expenditure of €241.9m to achieve growth, energy cost efficiencies, optimise logistics costs, and expand capacities, as well as for more working capital to support sales growth. The leverage ratio was reduced to 2.4x.

Titan also recorded its highest annual specific CO2 emissions reduction (-5%) recorded in the last decade, with higher use of alternative fuels and lower clinker-to-cement ratio. Green products and solutions are now approaching 20% of its sales volumes. It also had high ESG ratings. The Group’s digital transformation was rolled out to more plants with production efficiencies, in the form of increased output and energy cost savings, as well as with machine failure prediction detection, results in significant financial benefits.

All the above allowed the Group to focus on shareholder returns. Over €60m was spent in 2022 towards capital reduction distribution to shareholders and share buybacks. The Board proposes a dividend payment of €0.60 per share.

The Group said the outlook remains positive, given its exposure to resilient markets in America as well as in Europe and some large growth and logistics investments to be finalised in 2023.

Marcel Cobuz, Chairman of the Group Executive Committee, said: “The great performance results highlight the Group's ability to adapt to market conditions and to activate effective growth strategies, driving positive financial performance mainly in US and Europe, where we serve the majority of our customers and have close to 90% of our sales. They also underscore the Group’s resilience, adaptability and commitment of all our great teams to transform the Group commercially and technologically while digitizing our customer journey and decarbonising aggressively, delivering long-term value to all our stakeholders.”

Michael Colakides, Managing Director of TCI & Group CFO, added: “We are proud we closed the year with record sales and the best EBITDA profitability performance for over a decade. All our regions posted double-digit profitability growth as our margins recovered, on the back of dynamic pricing and cost-efficiency actions outweighing the impact of cost inflationary pressures. Our improvement in debt leverage coupled with an active investment growth portfolio, continuous shares buyback and the proposed dividend increase show our confidence in the business model and growth profile of the company.”

About Titan Cement International SA

TITAN Group is a leading international business in the building and infrastructure materials industry, with passionate teams committed to providing innovative solutions for a better world. With most of its activity in the USA, the Group employs over 5,000 people and operates in more than 25 countries, holding prominent positions in the USA, Greece, the Balkans, and the Eastern Mediterranean. The Group also has a joint venture in Brazil. With a 120-year history, TITAN has always fostered a family- and entrepreneurial-oriented culture for its employees and works tirelessly with its customers to meet the modern needs of society while promoting sustainable growth with responsibility and integrity. TITAN has set a net-zero goal for 2050 and has its CO₂ reduction targets validated by the Science Based Targets initiative (SBTi). The company is listed on Euronext and the Athens Exchange. For more information, visit our website at www.titan-cement.com.

(Pictured: Marcel Cobuz, Chairman of the Group Executive Committee of Titan Cement International SA)