Cementos Molins increases net profit by 7% and reaches 112 million euros in 2022

With this result, the company has exceeded the objectives of the 2020-2023 strategic plan one year ahead of schedule and will prepare a new plan later this year.

Cementos Molins today announced its annual results for 2022, a year marked by a global environment of slowing economic growth, strong cost inflation, especially in Spain, and tensions in the supply chain. Despite this environment, Cementos Molins has once again posted solid results, exceeding the targets set in the 2020-2023 strategic plan a year ahead of schedule.

Cementos Molins’ sales amounted to 1,268 million euros, an increase of 31% compared to the previous year, driven by sales increases in all businesses and by the significant contribution of the acquisitions made during 2021. On a like-for-like basis, sales increased by 18%.

EBITDA reached EUR 276 million, 14% higher than the previous year. This improvement in results was mainly due to the higher contribution from the businesses in South America and Asia, and the contribution from acquisitions. The strong negative impact of cost inflation was partially mitigated by price increases and the contribution from operational efficiency plans. On a like-for-like basis, EBITDA increased by 11%. The lower weight of the cement business in the portfolio after the acquisitions and the significant cost inflation have eroded margins, with the annual EBITDA margin standing at 21.8%, 3.2 points below the previous year.

Cementos Molins’ net profit was 112 million euros, 7% higher than the previous year, despite the strong impact of the hyperinflation adjustment in Argentina during the fourth quarter. The effective tax rate in 2022 without hyperinflation was 28%, contributing to the generation of well-being and wealth in the communities where the company has a presence.

Net financial debt decreased by 18% to EUR 145 million in FY2022, equivalent to a net financial debt/EBITDA multiple of only 0.5x. This strong financial position is a major lever for the execution of new growth opportunities and the investments foreseen in the sustainability roadmap 2030.

“In 2022 we achieved record sales and profits in a very difficult year with a constantly changing environment; despite this, we have once again been able to demonstrate the strength of our business model by achieving the objectives of the 2020-23 strategic plan a year ahead of schedule,” explains Julio Rodríguez, CEO of Cementos Molins. “These results are the fruit of the effort and talent of the Cementos Molins team, and are an injection of energy to continue working on our priority objective: our 2030 sustainability roadmap,” adds Rodríguez.

One year of the Sustainability Roadmap 2030

Apart from the economic milestones, this February coincides with the first year of the launch of the Cementos Molins Sustainability Roadmap 2030. Throughout this year, the company has made progress in the implementation of the various 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 20% by 2030 with the final commitment to supply carbon-neutral concrete by 2050.

Improving shareholder remuneration

On the other hand, the Board of Directors decided today to propose for approval at the next Annual General Meeting a dividend for the year of EUR 0.68 per share, 21% higher than last year’s, representing a pay-out of 40% and a yield of 3.9%. Considering the interim dividend distributed last December, the final dividend would be EUR 0.35 per share, to be distributed in July 2023 if approved by the AGM. This decision is part of Cementos Molins’ desire to improve shareholder remuneration.

Modular furniture for the BCN Fira District, in Paseo de la Zona Franca. Photo Arnau Rovira

Prefabricated façades for CASER residence in Malaga. Architect: Rafael de la Hoz