The strong commitment of the teams and the business model resilience made possible to overcome a year marked by Covid-19, achieving an EBITDA of €205 million, growing a 7% compared to 2020.
Sequential activity improvement with a strong increase in the fourth quarter, where revenues grew 12% and EBITDA 28%.
February 25th, 2021_Cementos Molins released today its annual results for 2020, a period in which net profit achieved €93 million, representing an increase of 4% compared to last year. In comparable terms of exchange rates and hyperinflation adjustment in Argentina, net profit grew by 27% in 2020.
Revenues achieved €775 million in 2020, which represents a decrease of 3% compared to last year. The strong markets contraction in the second quarter linked to the pandemic economic impact, has been offset by an acceleration in cement and ready-mix concrete activity during the third and fourth quarter. Specifically, between October and December, revenues reached €228 million, 7% higher than the same months in 2019.
EBITDA reached €205 million in 2020, increasing 7% over last year, despite the negative impact of the pandemic and exchange rates; the EBITDA at constant currencies increased 28%. The efficiency and cost savings plans applied at the beginning of the pandemic, the favourable development of energy costs, jointly with the contribution of Colombia during the first full year of operations, had a very positive impact on these results.
Regarding Net Financial Debt, it decreased to €74 million as of December 31st, 2020, representing a reduction of 59% compared to December 31st, 2019. The Net Financial Debt / EBITDA ratio continues to decline till 0.4x.
“2020 has been a very difficult year that has tested us, but the achieved results shown the the strong commitment of the teams at Cementos Molins and the resilience of our business model”, explains Julio Rodríguez, CEO of Cementos Molins. “Since the beginning of the pandemic, we have prioritized the safety of our employees and the continuity of customer service above all else, and both challenges have been overcome thanks to a great collective effort. In 2021 we are going to reinforce this effort and I have no doubts that, despite the pandemic, we will overcome the new challenges and achieve our goals”, adds Rodríguez.
Regarding sustainability, the strategic priority for Cementos Molins, 2020 has been a year of relevant progress, shown in the improvement of the company's Sustainability Barometer. The mentioned barometer is an instrument applied by Cementos Molins since 2015, that is the basis of a significant part of the executive’s variable remuneration, linked to achieving the sustainability targets.
Strategic Plan and outlook
The strategic plan of Cementos Molins is focused on 5 pillars: sustainability, efficiency, growth, digitalisation, and people. The company’s goal is to keep the EBITDA growth in a range between 5% and 6% on an annual average for the next 3 years.
Improve shareholder remuneration
Additionally, the Board of Directors approved today to propose at the next Shareholders' Meeting a dividend increase which implies a 30% pay-out in 2020, remaining in a range between 30% and 40% from fiscal year 2021 onwards. This new dividend policy is part of Cementos Molins' willingness to improve the remuneration for its shareholders.
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 “4Q 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, urban elements, architectural facades, and waste management businesses. Our long history has been possible thanks to almost 5,000 employees spread around nine countries and four continents with a common attitude working every day with passion, respect and integrity, being non-conformist and efficient.