The results from July to September are higher than those recorded before the pandemic
29 October 2020_Cementos Molins has today announced its results corresponding to the first nine months of 2020, with net profits reaching €62 million, 12% less than the same period last year. In comparable terms of exchange rates and hyperinflation adjustment, net profits to September grew by 13%.
Profits in the third quarter (July to September) stood at €29 million, 44% higher than the same quarter last year, when the net profit was €21 million.
Cementos Molins’ revenues up to September was €546 million, representing a decrease of 8% compared to the same period last year. The markets contraction in the second quarter was partially offset by an acceleration in cement and ready-mix concrete activity during the third quarter. Specifically, in the months of July, August and September 2020, revenues reached €206 million, 8% higher than the same months in 2019.
The business model of Cementos Molins continues to show resilience to the crisis. COVID-19 had a limited impact on the results of the first quarter in 2020 and a very negative impact on the second quarter, affecting April very heavily with a gradual recovery in results in May and June. In the third quarter, in contrast, the results have experienced strong growth, above the situation prior to the pandemic and significantly above the third quarter of last year.
EBITDA reached €143 million, similar to the same period in 2019, despite the pandemic and currencies depreciation (17% increase at constant currencies). The efficiency and cost savings plans adopted at the beginning of the pandemic are having a very positive impact on these results, offsetting the drop in sales volume.
Additionally, net financial debt decreased to €86 million as of September 30th, 2020, representing a reduction of 52% compared to December 31st, 2019 and 51% compared to September 30th, 2019. The Net Financial Debt / EBITDA ratio continues to decline to 0.5.
Effects on the year
Medium term visibility remains very low due to pandemic new waves and its negative impact on global markets, but Cementos Molins expects a fourth quarter in 2020 maintaining the gradual trend towards recovery and, in terms of cumulative EBITDA, it expects to end the year at levels close to 2019 despite the strong negative impact caused by the COVID-19 crisis and the depreciation of foreign currencies.
For Julio Rodriguez, CEO of Cementos Molins, these results confirm the resilience of the business model in the face of the crisis “The strong gains in the results in the third quarter reflect the contribution of the efficiency and cost containment measures and the promising start of operations of the new plants at Rio Claro in Colombia and San Luis in Argentina”. In his opinion, “the commitment of the teams is extraordinary and thanks to the collective effort of all our employees, Cementos Molins is safely navigating its way through the crisis caused by COVID-19 and maintaining a normal service for our clients”.
In accordance with the guidelines of the European Securities Markets Authority (ESMA) on Alternative Performance Measures (APM), which are of obligatory application for regulated information, the information and breakdowns relative to the APM used in this Press Release are included in the presentation of “Q3 2020 Results”, issued by the Company to the Spanish National Securities Market Commission.
About Cementos Molins. Cementos Molins has been creating products and developing innovative and sustainable solutions for the construction sector for over 90 years. This enables us to contribute towards the development of society and people's quality of life. We currently operate in Spain, Argentina, Uruguay, Mexico, Bolivia, Colombia, Tunisia, Bangladesh and India. Our integrated business model includes the aggregate, clinker, cement, ready-mix concrete, mortar, precast solutions and waste management businesses. Our long history has been possible thanks to our workforce of almost 5,000 employees spread around nine countries and four continents, all sharing the same bloodline: working every day with passion, respect and integrity, in a non-conforming and efficient manner.