Cementos Molins increases net profit by 35% and reaches 151 million euros in 2023

The company has reported sales and earnings growth in all businesses and in most regions where it operates.

Cementos Molins today announced its annual results for 2023. The year was characterised by a gradual slowdown in the markets during the second half of the year, as a result of an increasingly complex and uncertain global environment.

In this context, Cementos Molins’ sales amounted to 1,349 million euros, an increase of 6% over the previous year, with increases in all businesses and in most regions. This improvement in revenues was due both to the increase in sales volume and to the positive impact of price management. In Argentina, business management during 2023 has ensured that the consequences of the country’s economic crisis have had only a moderate impact.

EBITDA rose 22% year-on-year to EUR 337 million, with the contribution of the businesses in Mexico and Spain being particularly noteworthy. This improvement in operating profit was mainly due to volume increases, the positive impact of the efficiency plans and the improvement in selling prices. On the other hand, the exchange rate had an unfavourable impact, especially due to the strong devaluation of the Argentine peso in the fourth quarter. The EBITDA margin increased by 3.2 p.p. to 25.0%, recovering the previous year’s erosion.

Cementos Molins’ net profit amounted to 151 million euros, 35% higher than in the same period of the previous year. This increase is the result of the sharp rise in operating profit, which in the previous year was negatively affected by the economic slowdown, high cost inflation and supply chain tensions. The effective tax rate in 2023 without hyperinflation has been maintained at 28%, contributing to the generation of welfare and wealth in the communities where the company has a presence.

Net financial debt continued to decrease during the fourth quarter to reach a net cash balance of EUR 17 million. This solid financial position is a strong lever for the development of new growth opportunities and for the implementation of the investments foreseen in the sustainability roadmap 2030.

“In 2023 we achieved record sales and profits, despite an increasingly complex and uncertain global environment, and we have once again demonstrated the strength of our business model by exceeding our targets,” explains Julio Rodríguez, CEO of Cementos Molins. “These results are the result of the effort and great commitment of our team of more than 6,300 people and encourage us to continue working on the company’s priority objective, our 2030 sustainability roadmap,” adds Rodríguez.

Two years of the Sustainability Roadmap 2030
Apart from the economic milestones, this month of February coincides with the second year of the launch of the Sustainability Roadmap 2030 of Cementos Molins. Throughout this year, the company has made progress in the execution of the different objectives established in the areas of Health and Safety, Climate Change and Energy, Circular Economy, Environment and Nature, and Corporate Social Responsibility. Through this roadmap, the company will reduce its emissions by at least 20% by 2030, with the final commitment to supply carbon-neutral concrete by 2050.

New Strategic Plan 2024-26
After surpassing the previous Strategic Plan 2020-23 one year ahead of schedule, the Board of Directors has approved the new Strategic Plan for the period 2024-26, which aims for profitable and sustainable growth based on five pillars: 2030 agenda, sustainable products and solutions, digital agenda, sustainable growth, and people. With this plan, a series of strategic initiatives grouped around the five priority pillars are launched. The objective for the next three years is organic growth with sales in a range between 3% and 4% on average per year, and EBITDA in a range between 4% and 5% on average per year.

Shareholder remuneration
In addition, the Board of Directors decided today to propose for approval at the next Annual General Meeting a dividend for the year of EUR 0.92 per share, 35% higher than last year, representing a pay-out of 40% and a yield of 4.7%. Considering the interim dividend distributed last December, the final dividend would be EUR 0.52 per share, to be distributed in July 2024 if the AGM so approves. This decision is part of Cementos Molins’ desire to improve shareholder remuneration.

Juan Molins, Chairman of Cementos Molins; Julio Rodríguez, Managing Director; and Jorge Bonnín, CFO

Residential building in Seville. Architect: Julio Touza.

CASER Residence in Malaga. Architect: Rafael de la Hoz.