Cementos Molins increases net profit by 4% in 2020 despite pandemic and earns 93 million euros

The strong commitment of the human team and the resilience of the business model enabled the company to overcome a year marked by the covid-19 pandemic and to close with an EBITDA of 205 million euros, up 7% compared to 2020.

EBITDA of €205 million, 7% higher than in 2020. Improved activity with strong growth in Q4, with revenues up 12% and EBITDA up 28%.

Sequential business improvement with a strong increase in the fourth quarter, where revenues grew by 12% and EBITDA by 28%.

25 February 2021_CementosMolins today announced its annual results for 2020, a year in which net profit reached 93 million euros, representing a 4% increase over the previous year. In comparable terms of exchange rates and adjustment for hyperinflation in Argentina, net profit would increase by 27% in 2020.

Cementos Molins’ revenues amounted to €775 million at the end of 2020, a decrease of 3% compared to the same period of the previous year. The sharp contraction of the markets in the second quarter as a result of the impact of the Covid-19 pandemic has been mitigated by the acceleration of activity in the third and fourth quarters of the year. Specifically, between October and December, revenues amounted to €228 million, 12% more than in the same months of 2019.

EBITDA amounted to €205 million in 2020, up 7% year-on-year, despite the negative impact of the pandemic and exchange rates; the increase in EBITDA at constant exchange rates would be 28%. The efficiency and cost reduction plans adopted at the beginning of the pandemic, the favourable evolution of energy costs, together with the results of the first full year of activity in Colombia, have had a very positive impact on these results.

As regards net financial debt, it decreased to €74 million as at 31 December 2020, representing a reduction of 59% compared to 31 December 2019. The Net Financial Debt / EBITDA multiple continues to decrease to the level of 0.4.

“2020 has been a very difficult year that has put us all to the test, but the results achieved make clear the strong commitment of the Cementos Molins team and the resilience of our business model,” explains Julio Rodríguez, CEO of Cementos Molins. “Since the beginning of the pandemic, we have prioritised above all the safety of our employees and the continuity of customer service, and both challenges have been overcome thanks to a great collective effort. In 2021 we are going to redouble this effort and I have no doubt that, despite the pandemic, we will manage to overcome the new challenges and achieve our objectives,” adds Rodríguez.

In the chapter on sustainability, a strategic priority for Cementos Molins, 2020 has been a year of outstanding progress that has been reflected in the improvement of the indicators of the company’s Sustainability Barometer. The aforementioned barometer is an instrument promoted since 2015 by Cementos Molins, by virtue of which a significant part of the variable remuneration of managers is linked to achieving sustainability objectives.

Strategic plan and future forecasts

Cementos Molins’ strategic plan focuses on 5 pillars: sustainability, efficiency, growth, digitalisation and people. The company’s objective is to maintain EBITDA growth in a range between 4% and 6% on average per year over the next 3 years.

Improving shareholder remuneration

On the other hand, the Board of Directors has approved today to propose at the next General Shareholders’ Meeting an increase in the dividend with a pay-out that will increase to 30% in 2020, and that will be maintained in a range between 30% and 40% for 2021 and subsequent years. This new dividend policy is part of Cementos Molins’ desire to improve shareholder remuneration.

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 “4Q 2020 Results” presentation 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, urban environment and architectural façades, as well as waste management. Our long history has been possible thanks to our team of almost 5,000 employees in nine countries and four continents with a common attitude, working every day with passion, respect and integrity, being non-conformist and efficient.