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CEMACON SA - CEON

2017 H1 financial results

Release Date: 8/3/2017 7:50:03 AM

IRIS Code: ABE7B

 S1 2017 performance  



þ  +65% operating profit (EBITDA)

þ  5.2 million Lei net profit

þ  39.4 million Lei turnover

þ  +22% revenues from sale of goods

 

 Statement of the General Manager


“The results of the first 6 months are good. We have a 65% increase in the operating profit compared to the same period of 2016 and a net profit of 5.2 million Lei.

For this year, we are focusing on business consolidation, given that in 2016, CEMACON reached the maximum cap of quantitative sales. We are making full use of the production capacity of the two factories, which is why we are counting on the quality and value growth of the market for 2017, at a faster pace than the volume evolution. Unfortunately, this premise has not materialized, we are still in a low-priced area related to consumption evolution.

We are supporting business growth by selling complementary products to ceramic blocks - lintels and chimneys. During the first quarter, the revenues from sale of goods increased by 22%.

By the end of the year, we estimate that we will have achieved our budget targets, with increased attention to more efficient selling.

What gives us confidence and always helps us find solutions for the continued growth of Cemacon is that we have all the support of the three major shareholders who are equally prepared to invest in the company’s development projects.”

 

 Profit and loss account - Results on 30 June 2017


During the first quarter of 2017, the company strengthened its position on the national market of building materials by reaching an operational profit higher with 65% and a net turnover similar to the one from prior year. Compared to the budget, it represents 44% of the target proposed for the year 2017.

At the level of other operating revenues, there have been no significant changes compared to 2016, the main revenues being represented by the EUA certificates received free of charge. The main amounts presented for other earnings and losses are reversals of provisions.

The increase reported at the level of inventory variation is generated by the structure of production and sales during the period, as assortment and as production location. Following the implementation of optimization investment at the Recea factory, the company has reported an increase in productivity at the Recea factory, thus generating cost savings during the period.

The variation in expenses for raw materials and consumables correlates with the production variation during the first quarter of 2017 compared to the first quarter of 2016.

Changes in salary remunerations compared to the same period in 2016 are generated by both the increase in the number of employees and by the annual growth of salaries implemented by the company in the context of labour market dynamics.

The value of other operating expenses has not changed significantly compared to the first quarter of 2016.

The financial result has improved by 27% compared to the same period of 2016 as a result of the reduction of the interest expenses by 26% (324.193 Lei) and of the discounts granted by 27% (237.338 Lei).

As a result of the above elements, the company has reported an increase in the EBITDA operating profit by 65% compared to 2016, amounting to 10.15 million Lei at the end of the period ended on 30 June 2017.

  

 

30 June 17

30 June 16

2017 vs 2016

2017 vs 2016

 

LEI

LEI

LEI

%

         

Net turnover

         39.426.527

         39.469.035

          42.507

0%

         

Revenues from sales

         39.425.920

         39.468.914

          42.994

0%

         

Other operating revenues 

               506.729

               659.562

        (152.833)

-23%

Other earnings and losses

           2.829.411

           1.157.488

       1.671.923

144%

Variation of inventories

           2.486.944

         (1.456.727)

       3.943.671

-271%

         

Raw materials and consumables

         (8.997.953)

         (8.310.326)

        (687,627)

8%

Personnel-related costs

         (9.027.788)

         (8.395.832)

        (631.956)

8%

Other operating costs

       (17.072.936)

       (16.967.715)

        (105.221)

1%

         

EBITDA

         10.150.327

           6.155.364

       3.994.963

65%

Depreciation and impairment

         (3.324.676)

         (3.200.554)

        (124.122)

4%

         

EBIT

           6.825.651

           2.954.810

       3.870.841

131%

Financial revenues 

                 68.848

                 46.532

             22.316

48%

Financial costs

         (1.626.001)

         (2.171.571)

          545.570

-25%

Financial result

         (1.557.153)

         (2.125.039)

          567.886

-27%

         

Profit / (Loss) before taxation

           5.268.498

               829.771

       4.438.727

535%

Tax-related costs

                           -  

                           -  

                      -  

0%

Profit / (Loss)

           5.268.498

               829.771

       4.438.727

535%

 *On the date of presenting the results for the first Semester, no other items of global result and deferred tax were calculated.

 

Statement of Assets and Liabilities - Results of 30 June 2017


 


ASSETS

 

30 June 17

31 December 16

2017 vs 2016

2017 vs 2016

FIXED ASSETS

 

LEI

LEI

LEI

%

Tangible assets

 

   119.850.243

   116.396.783

      3.453.460

3%

Intangible assets

 

           277.082

           334.207

          (57.125)

-17%

Investment in shares

 

                   200

                   200

                      -  

0%

Other fixed assets

 

           120.352

           112.752

               7.600

7%

Total Fixed Assets

 

   120.247.877

   116.843.942

      3.403.935

3%

CURRENT ASSETS

 

       

Inventories

 

     13.336.810

     10.942.409

      2.394.401

22%

Commercial and similar debts

 

     14.695.603

     11.076.927

      3.617.656

33%

Other financial assets

 

                8.405

           490.721

        (482.316)

-98%

Cash and cash equivalents

 

     23.341.297

     28.736.299

    (5.395.002)

-19%

Total Current Assets

 

     51.382.115

     51.246.356

          134.739

0%

Assets held for sale

 

       1.277.495

       1.277.495

                     -  

0%

TOTAL ASSETS

 

   172.907.486

   169.367.793

      3.538.674

2%

 

 

       

LIABILITIES

 

       

PRESENT LIABILITIES

 

       

Commercial and similar liabilities

 

     10.357.516

     11.859.442

    (1.501.926)

-13%

Loans

 

       7.045.326

       5.040.143

      2.005.183

40%

Liabilities related to corporate tax

 

                       -  

             64.496

          (64.496)

-100%

Provisions

 

       1.780.841

       4.578.409

    (2.797.568)

-61%

Total Present Liabilities

 

     19.184.704

     21.542.490

    2.358.807

-11%

 

 

       

LONG-TERM LIABILITIES

 

       

Commercial and similar liabilities

 

                       -  

                       -  

                      -  

0%

Loans

 

     49.419.728

     48.787.282

          632.446

1%

Grants for investment

 

       1.121.016

       1.158.837

          (37.821)

-3%

Deferred tax

 

       1.262.668

       1.262.668

                      -  

100%

Provisions

 

           666.716

           632.358

            34.358

0%

Total Long-Term Liabilities

 

     52.470.128

     51.841.145

          628.983

1%

 

 

       

TOTAL LIABILITIES

 

     71.654.832

     73.383.635

    1.729.824

-2%

 

 

       

NET ASSETS

 

   101.252.653

     95.984.158

      5.268.498

5%

 

 

       

EQUITY AND RESERVES

 

       

Issued capital

 

     20.613.371

     20.613.371

                       0

0%

TOTAL EQUITY

 

   101.252.653

     95.984.158

      5.268.496

5%

As far as fixed assets are concerned, there has been a 3% increase as compared to 31 December 2016, the increase being reported as a result of the commissioning of the fixed assets purchased during the period and partly compensated by the depreciation reported during the period.

The current assets have not shown any significant changes compared to the period ended on 31 December 2016, but the structure of current assets has changed as a result of the transactions and operational activities carried out during January - June 2017. Cash has fallen by 19% (5.3 million Lei in absolute amount) offset by a 22% increase in inventories (2.4 million Lei in absolute amount) and commercial debts by 33% (3.6 million Lei in absolute amount).

Banking liabilities had a 5% increase at the end of 2016, a change caused both by contracting financial leases for the implementation of approved investment programmes for 2017 and by the reduction in the value of the bank loan by repayment of instalments and interests according to the maturity, with no interruptions or delays in this process.

Commercial liabilities have dropped by 13% and are in line with the company’s need for current business development, and provisions have decreased due to reversals during the first Semester of 2017.

Issued capital has not changed, the increase in capitals being generated by the result obtained during the period.

 

Main Economic and Financial Indicators


 

Relevant financial indicators 

 

30 June 17

 

30 June 16

1. Current liquidity indicator

2.74

2.46

2. Leverage indicator   

56%

58%

3. Turnover speed for client debit items

59

51

4. Turnover speed for total assets

33%

35%

 

 

Consolidated Results of the CEMACON SA Group


Information on the presentation of the CEMACON SA Group:

CEMACON SA is a Romanian legal entity founded as a joint stock company based on Government Decision no.1200/1991 with its registered office in Cluj-Napoca, no. 48 Dorobantilor Street, Silver Business Center building, 1st floor, Cluj county. The company’s main object of activity is “Manufacture of bricks, tiles and other construction products made from burnt clay”

 SC CEMACON Real Estate Company was founded as a result of the agreement signed by SC CEMACON SA and the Romanian Commercial Bank in order to take over part of the liabilities and assets, according to the reorganization process.

 The individual financial statements of SC CEMACON Real Estate Company are prepared in accordance with Order of the Minister of Public Finance 1802/2012.

The financial statements of the controlled branch have been prepared for the same reporting period as those of the parent company, using the same accounting policies.

The International Financial Reporting Standards (IFRS) have been applied when preparing the consolidated financial statements.

 Even if the financial statements of SC CEMACON Real Estate have been prepared in accordance with Order of the Minister of Public Finance 1802/2012, the necessary adjustments have been made in order to reflect the accounting policies of the parent company with a view to consolidating.

 

Consolidated Statement of Assets and Liabilities - Results of 30 June 2017


 


ASSETS

30 June 17

31 December 16

2017 vs 2016

2017 vs 2016

FIXED ASSETS

LEI

LEI

LEI

%

Tangible assets

119,850,243

116,396,783

3,453,460

3%

Intangible assets

277,082

334,207

-57,125

-17%

Investment in shares

                       - 

                       - 

                       - 

0%

Other fixed assets

120,352

112,752

7,600

7%

Total Fixed Assets

120,247,677

116,843,742

3,403,935

0%

 

 

CURRENT ASSETS

       

Inventories

13,336,810

10,942,408

2,394,402

22%

Commercial and similar debts

13,730,169

9,489,074

4,241,095

45%

Other financial assets

8,405

490,721

-482,316

-98%

Cash and cash equivalents

23,478,425

29,957,212

-6,478,787

-22%

Total Current Assets

50,553,809

50,879,415

-325,606

-1%

Assets held for sale

19,238,703

19,238,703

0

0%

TOTAL ASSETS

190,040,188

186,961,860

3,078,328

2%

         

LIABILITIES

       

PRESENT LIABILITIES

       

Commercial and similar liabilities

11,088,276

12,856,779

-1,768,503

-14%

Loans

 7,045,326

5,040,143

2,005,183

40%

Liabilities related to corporate tax

 

64,496

-64,496

-100%

Provisions

1,780,841

4,578,409

-2,797,568

-61%

Total Present Liabilities

 19,914,443

22,539,827

-2,625,384

-12%

         

LONG-TERM LIABILITIES

       

Commercial and similar liabilities

 

 

                       - 

0%

Loans

66,247,323

65,567,579

679,744

1%

Grants for investment

1,121,016

1,158,837

-37,821

-3%

Deferred tax

1,241,071

1,241,071

0

0%

Provisions

666,716

632,358

34,358

5%

Total Long-Term Liabilities

69,276,126

68,599,845

676,281

1%

         

TOTAL LIABILITIES

 89,190,569

91,139,672

-1,949,103

-2%

         

NET ASSETS

 100,849,621

95,822,188

5,027,433

5%

 

 

 

 

 

EQUITY AND RESERVES

 

 

 

 

Issued capital

20,613,371

20,613,371

0

0%

TOTAL EQUITY

100,849,621

95,822,188

5,027,433

0%

 

Consolidated profit and loss account - Results on 30 June 2017


 

 

30 June 17

30 June 16

2017 vs 2016

2017 vs 2016

 

LEI

LEI

LEI

%

         

Revenues from sales

 39,431,097

 39,468,914

 (37,817)

0%

         

Other operating revenues 

 558,308

 735,064

 (176,756)

-24%

Other earnings and losses

 2,829,411

 1,155,811

 1,673,600

145%

Variation of inventories

 2,486,944

 (1,456,727)

 3,943,671

-271%

         

Raw materials and consumables

 (9,003,477)

 (8,310,355)

 (693,122)

8%

Personnel-related costs

 (9,073,049)

 (8,399,960)

 (673,089)

8%

Other operating costs

 (17,114,012)

 (16,966,825)

 (147,187)

1%

 

 

 

 

 

EBITDA

10,115,222

6,225,922

3,889,300

62%

Depreciation and impairment

 (3,324,676)

 (3,200,554)

 (124,122)

4%

 

 

 

       

EBIT

6,790,546

3,025,368

3,765,178

124%

Financial revenues 

 345,399

 374,006

 (28,607)

-8%

Financial costs

 (2,108,512)

 (2,684,885)

 576,373

-21%

Financial result

 (1,763,114)

 (2,310,879)

547,765

-24%

         

 

Profit / (Loss) before taxation

5,027,432

714,489

4,312,943

604%

Tax-related costs

                    - 

                    - 

                     - 

0%

Profit / (Loss)

 5,027,432

 714,489

4,312,943

604%

*On the date of presenting the results for the first Quarter, no other items of global result and deferred tax were calculated.

***

The report and the related documents can be consulted as of 3 August 2017, 8:00, at the company’s headquarters on No. 48 Dorobantilor Street, Cluj-Napoca or electronically on the company’s website: www.cemacon.ro   and on the website of the Bucharest Stock Exchange: www.bvb.roThe report can be found in the link below.

***

*The results presented are prepared in accordance with IFRS and have a preliminary nature, and will be subject to financial auditing in accordance with legal provisions.

 CEMACON SA ranks second in the top of masonry manufacturers in Romania and is the market leader in Transylvania.

 The company operates the most modern and largest manufacturing capacity in Romania with innovative, differentiated products that bring added value to users, at very competitive production costs.

 CEMACON SA is a company listed on the Bucharest Stock Exchange and mainly owned by institutional shareholders, Romanian and foreign investment funds; the company management is professional, independent, having strong sector expertise.

 



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