TITAN Group reports 7.6% growth in H1

TITAN Group achieved consolidated sales growth of 7.6% in the first half of 2024, reaching €1,323.0m, with all regions supporting top-line growth and overall volumes increasing, attributing to the delivery of another strong performance.

Cement pricing was firmly upheld, exhibiting low regional variances, while selective price increases were performed in aggregates and ready-mix concrete. “Operational efficiencies, as reflected in our optimised productivity, improved energy mix performance and increased digitalisation processes in the manufacturing process, have further bolstered the Group’s profitability,” the TITAN said in a press release.

The Group’s EBITDA for the period reached €281.4m, increased by 16.7% y-o-y, despite unabated cost pressures in factors such as labour, transportation and raw materials across the regions it operates, as well as elevated electricity cost in Greece.

“Last 12-month rolling EBITDA margin strengthened to 22.0%, following improved contribution from ready-mix and aggregates,” it said. “Our main markets progressed steadfastly with the US forging ahead with a robust performance, resilient to the adverse weather and the prolonged high interest rates. Greece benefited from the burgeoning domestic demand expanding its volumes across the product mix, while Southeastern Europe continued to grow with increased cement demand in almost all countries. The market in Turkey has exhibited strong demand, while demand in Egypt was flat.”

Net profit after taxes and minority interests (NPAT) in the first six months of 2024 rose to €148.7m, posting a significant improvement of 34.1% y-o-y. “The positive dynamics of demand in our markets have been mirrored across all product lines with domestic cement volumes growing to 8.7m tons, increasing by 3% y-o-y, while elevated cement and clinker exports were achieved,” TITAN said.

It reported similar growth trends in its downstream products with ready-mix volumes increasing by 8% y-o-y and those of aggregates by 3%; building blocks and fly-ash volumes also increased compared to the same period in 2023.

Marcel Cobuz, Chairman of the Group Executive Committee, stated: "An outstanding performance of the first half of the year with strong commercial focus and accelerated execution of our Strategy 2026 across our markets. We are set for delivering transformational key projects, creating long term value for all stakeholders, focusing on decarbonisation and digitalisation, while driving commercial transformation and excellence in serving our customers.”

Michael Colakides, Managing Director of TCI & Group CFO, said: “We are pleased with our strong year-to-date performance, driven by robust sales, operational efficiencies and profitability growth. Strengthening our balance sheet positions us well for additional growth investments in the US and Europe and further sustained value creation. We are confident that our efforts will drive higher value for our stakeholders in the second half of the year and beyond."

H1 2024 Highlights

• H1 2024 sales grew by 7.6% to €1,323.0m with all regions posting increased sales, with overall volume growth across Group’s product lines. EBITDA reached €281.4m, up 16.7% y-o-y (20% like-for-like adjusted for non-recurring costs), supported by stable pricing and operational cost performance. Net profit increased by 34.1% y-o-y, to €148.7m.
• Q2 2024 sales reached €699.3m, up 9.1% versus Q2 2023, with solid demand levels in the US and elevated activity in Europe. Second quarter’s EBITDA performance of €171.6m marked the 9th consecutive quarter of EBITDA growth.
• Further reduction of net debt translated to low debt leverage ratio of 1.1x EBITDA.
• Group’s growth CapEx in H1 2024 was channelled to improved energy mix performance, digitalisation projects, the expansion of quarry reserves and increased logistics and storage capacity.
• TITAN 2026 Green Growth Strategy execution is well on track, with 4 new bolt-on acquisitions completed in the first half and achieving new performance level in alternative fuels substitution & clinker substitution in blended cements. The new family of Titan Edge and Titan Premier brands is launched targeting to double sales of sustainable products and solutions by 2026. The CCS project in Athens and newly awarded Calcined Clay Project in US enter their feasibility assessment phase.
• End-to-end digital tools of Real-Time Optimisers (RTOs) completed in another two plants, achieving productivity and energy reduction gains.
• The Group’s plan to list its US operations in a New York exchange is progressing according to schedule with the listing expected to take place in Q1 2025.
• A new €20m share-buyback programme will start upon the termination of the existing one, while the €0.85 dividend/share was paid on July 3rd, 2024.
• Titan’s stock (“TITC”) was included in the FTSE Russell Large Cap Index in Q1 and in the FTSE4Good Index Series at the end of Q2 2024.
• The outlook for the rest of the year remains positive, driven by volume growth and resilient pricing in the US and Europe. Our decarbonisation and digitalisation initiatives further enhance operational efficiencies.