Cementos Molins earns 62 million euros up to September and accelerates its activity in the third quarter

The results between July and September are above those recorded before the pandemic.

29 October 2020_CementosMolins today announced its results for the first nine months of 2020, in which net profit amounted to 62 million euros, down 12% compared to the same period last year. In comparable exchange rate and hyperinflation-adjusted terms, net profit to September increased by 13%.

Profits in the third quarter (July to September) amounted to 29 million euros, 44% more than in the same quarter of the previous year, when net income was 21 million euros.

Cementos Molins’ revenues up to September amounted to 546 million euros, a decrease of 8% compared to the same period of the previous year. The contraction of the markets in the second quarter has been partially offset by an acceleration of activity in cement and concrete in the third quarter. Specifically, in the months of July, August and September 2020 revenues reached €206 million, 8% higher than in the same months of 2019.

Cementos Molins’ business model continues to show its resilience in the face of the crisis. COVID-19 had a limited effect on the results of the first quarter 2020 and a very negative impact in the second quarter, with a strong impact in April and a gradual recovery of results in May and June. In the third quarter, however, the results have risen sharply, above the pre-pandemic situation and significantly above the third quarter of the previous year.

EBITDA reached €143 million, similar to the same period of 2019, despite the pandemic and currency depreciation (up 17% at constant exchange rates). The efficiency and cost reduction plans adopted at the beginning of the pandemic are having a very positive impact on these results, offsetting the drop in sales volume.

As regards net financial debt, it decreased to €86 million as at 30 September 2020, representing a reduction of 52% compared to 31 December 2019 and 51% compared to 30 September 2019. The Net Financial Debt / EBITDA multiple continues to decrease to the level of 0.5.

Effects on the year
Medium-term visibility continues to be very low due to the new waves of the pandemic and its negative effects on the global markets, but Cementos Molins expects a fourth quarter 2020 maintaining the trend of gradual recovery and, in terms of accumulated 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 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 increase in results in the third quarter reflects the contribution of efficiency and cost containment measures and the promising first year of operation of the new plants in Rio Claro in Colombia and San Luis in Argentina”. In his opinion, “the commitment of the human team is extraordinary and thanks to the collective effort of all our employees, Cementos Molins is safely getting through the crisis caused by COVID-19 and keeping the service to our customers within normality”.

Following the European Securities Markets Authority (ESMA) guidelines on Alternative Performance Measures (APMs), which are mandatory for regulated information, the information and disclosures relating to APMs used in this press release are included in the presentation of the “3Q 2020 Results”, submitted by the Company to the Spanish Securities and Exchange Commission (Comisión Nacional del Mercado de Valores).

About Cementos Molins. At Cementos Molins we have been creating products and developing innovative and sustainable solutions for the construction sector for more than 90 years. This is the way in which we contribute to 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 model includes the businesses of aggregates, clinker, cement, concrete, mortars, prefabricated products and waste management. Our long history has been possible thanks to our team of almost 5,000 employees in nine countries and four continents who share the same DNA: we work every day with passion, respect and integrity, being non-conformist and efficient.