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CEMACON SA - CEON

Preliminary financial results 2019

Release Date: 2/28/2020 6:00:03 PM

IRIS Code: FCF1C

12 Month Performance 2019

 

50,38 million lei operational profit (EBITDA)

33,07 million lei Net Profit

143,61 million lei Net Turnover with 40% greater than in 2018

 

General Manager Statement


“The year 2019 was a peak of growth for Cemacon. This growth started back in 2011 when I took over the management of the company.

The financial results are the best not only for Cemacon but also for the industry itself. Operating profit rate of 35.08% and  net income of 23.03% are specific for privileged branches with low competitor level, not for construction activities sector.

The market context was favorable in 2019 , even if, compared with 2018 the rhythm of growth for construction materials was limited.

The over 10 milion euros invested in the last 3 financial years led to a tripling of the operating profit and a 70% increase in turnover.

At the same time, 2019 was about gaining 9 millions lei as not refundable funds. These funds accelerated significative investments in energetic efficiency and in developed the know-how of our employees.

The investment in the lintel factory was  a success; less than 1 year after the opening of the factory, under 100% loading conditions, we increased the production capacity and consolidated the position of market leader at national level.

We remain optimistic in the company’s ability to adapt to the market and it’s changes and we will propose to the shareholders a budget built boldly on premise of maintaining the level of demand for masonry materials in 2020.

 

Profit and loss Account – Preliminary Results 12 Months 2019

 

In a good market context, the company recorded an 41% increase in gross turnover compared to 2018 exceeding 157,200,000 lei. Compared to 2018, the share of revenues from ceramic blocks and merchandise remained similar to that of the previous period.

 

Changes in inventory revenues recorded higher values than in the previous period due to the gap between the quantities produced and sold in 2019. The increase recorded for other operating income is marked by the increase in the price of EUA certificates received free of charge. Amounts related to other gains or losses represent the cancellation of provisions made in the previous year, provisions made during the current period and also the impact from revaluations.

 

Expenditure on raw materials and materials has grown by 26% as a result of the increase in the quantity produced compared to the previous year, productivity marked by investments put into operation in 2018 as well as by a generalized increase in the purchase price for raw materials, materials and fuel generated by the current economic context.

 

Wage expenditures recorded a 21% increase over the previous year due to a 14% increase in the number of employees compared to 2018, as well as due to the wage changes operated in the context of an increasingly competitive labor market and as the implementation of the changes brought by OUG 114 at the end of December 2018. Operating expenses increased with 24% compared to last year, growth marked by the pace of development of the company's activity.

 

For the period ended December 31, 2019 CEMACON has an operating profit of 50,379,235 lei and a net profit of 33,074,565 lei.

 

 
 

31-Dec-19

31-Dec-18

2019 vs 2018

2019 vs 2018

 

LEI

LEI

LEI

%

         

Gross Turnover

157,260,004

111,280,984

45,979,020

41%

Net Turnover

143,607,041

102,563,325

41,043,716

40%

         

Sales revenues

143,011,750

102,560,563

40,451,187

39%

         

Other operating revenues

3,827,650

1,186,182

2,641,468

223%

Other gains and losses

(3,250,883)

(1,352,373)

(1,898,510)

140%

Change in inventories of FG & WIP

4,712,072

9,208,728

(4,496,656)

-49%

         

Raw materials and consumables

(28,797,496)

(22,912,842)

(5,884,654)

26%

Personnel expenses

(24,836,226)

(20,609,701)

(4,226,525)

21%

Other operating expenses

(45,404,685)

(36,585,162)

(8,819,523)

24%

         

EBITDA

50,379,235

32,495,258

17,883,977

55%

Depreciation and amortization expenses

(10,738,341)

(8,411,373)

(2,326,968)

28%

         

Income impairment of assets

68,124

-

68,124

100%

EBIT

38,523,841

24,083,885

14,439,956

60%

Financial income

1,751,377

806,452

944,925

117%

Financial expenses

(3,079,590)

(2,589,923)

(489,667)

19%

Financial result

(1,328,213)

(1,783,471)

455,258

-26%

         

Profit before tax*

37,195,628

21,300,551

15,895,077

75%

Income tax expenses

(4,121,063)

(2,383,208)

(1,737,855)

73%

Profit after tax

33,074,565

18,917,343

14,157,222

75%

Total other elements of

other comprehensive income

-

(248,047)

248,047

0%

Comprehensive income total

33,074,565

18,669,296

14,405,269

77%

* At the time of presentation of the preliminary results 2019, no other comprehensive income and deferred tax items have been computed.

** EBITDA = Operating profit + Expenses with depreciation + Financial discounts granted - Income impairment of non-current assets


 

 

Statement of financial position – Preliminary Results 31st of December 2019

 

31-Dec-19

31-Dec-18

2019 vs 2018

2019 vs 2018

 

LEI

LEI

LEI

%

ASSETS

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

Property, plant and equipment

147,248,957

134,042,143

13,206,814

10%

Investment property

8,202,483

-

8,202,483

100%

Intangible

4,750,087

2,355,508

2,394,578

102%

Rights of use assets (IFRS 16)

7,239,143

-

7,239,143

100%

Investments

45,200

200

45,000

22500%

Other non-current assets

339,625

108,893

230,732

212%

NON-CURRENT ASSETS TOTAL

167,825,495

136,506,744

31,318,751

23%

CURRENT ASSETS

       

Inventories

                            20,307,951

16,751,218

3,556,733

21%

Trade and other receivables

                            52,520,146

27,371,449

25,148,697

92%

Cash and cash equivalents

                            17,663,070

19,515,952

(1,852,881)

-9%

CURRENT ASSETS TOTAL

90,491,167

63,638,619

26,852,548

42%

Assets classified as held for sale

-

1,277,495

(1,277,495)

-100%

TOTAL ASSETS

258,316,662

201,422,858

56,893,804

28%

 

 

 

 

 

LIABILITIES

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

21,623,217

15,866,650

5,756,567

36%

Loans and borrowings

10,013,370

7,907,532

2,105,838

27%

Lease liabilities (IFRS 16)

916,882

-

916,882

100%

Tax liability

997,771

-

997,771

100%

Provisions

12,825,911

5,527,445

7,298,466

132%

CURRENT LIABILITIES TOTAL

46,377,152

29,301,627

17,075,525

58%

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

Non-current trade and other liabilities

-

-

-

-

Loans and borrowings

35,773,123

39,499,833

(3,726,710)

-9%

Lease liabilities (IFRS 16)

6,326,946

-

6,326,946

100%

Grants received

993,593

1,007,553

(14,073)

-1%

Deferred tax

1,127,086

1,127,086

-

0%

Provisions

2,233,892

2,043,025

190,867

9%

NON-CURRENT LIABILITIES TOTAL

46,454,527

43,677,497

2,777,030

6%

 

 

 

 

 

TOTAL LIABILITIES

92,831,679

72,979,124

19,852,555

27%

 

 

 

 

 

NET ASSETS

165,484,984

128,443,734

37,041,249

29%

EQUITY

 

 

 

 

Issued capital as per IFRS

59,779,702

57,067,443

2,712,260

5%

TOTAL EQUITY

165,484,984

128,443,734

37,041,249

29%

 

The 23% increase in fixed assets as of 31 December 2018 is determined by the commissioning of assets acquired during the period and partly offset by depreciation recorded during the period and the registration of EUA certificates as intangible assets, as well as the registration of the right to use leasing assets in accordance with IFRS 16 and the impact from revaluation.

 

In the context of the early repayment of the loan contracted by Cemacon Real Estate from the Commercial Bank of Romania (action completed in January 2019), the credit agreement ceased its effect, consequently the constraint imposed by the bank to sell the assets ceased. Thus, Cemacon SA also decided that, in the third quarter of 2019, it would withdraw assets held for sale, according to IFRS 5, thus modifying the treatment in accordance with IAS 40 - real estate investments, and recording in December 2019 the impact from revaluation, according to this treatment.

The increase in receivables is due to the commercial activity carried out during the period (sales by 23% higher than the previous year).

Bank debts and loans recorded a decrease compared to 2018, as a result of the repayment of the rates and interest according to the due date, being no interruptions or delays in this process. As a result of the aplication of the standard IFRS 16, the company recognized the lease liability related to the rental contracts, in conjunction with the increase in assets. Current income tax liabilities increased significantly due to the positive financial results obtained at the end of 2019.

The increase in equity was generated by the capital increase approved by the AGEA decision as at 28.09.2018. The company has issued current reports for each stage of this operation.

At the end of the period ended 31 December 2019, the net assets of the company recorded a 29% increase as compared to the end of 2018, exceeding 165,484,984 lei.

 

Main Financial Ratios

 

Main Financial Ratios

31-Dec-19

31-Dec-18

1. Current liquidity indicator

                  1.95

                 2.22

2. Leverage indicator   

28%

37%

3. Turnover speed for client debit items (days)

93

64

4. Turnover speed for total assets

94%

82%

 

 


 

Consolidated Results of the CEMACON 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. 178K, Calea Turzii Street, Hexagon Offices, 1st floor, Cluj county. The company’s main object of activity is “Manufacture of bricks, tiles and other construction products made from burnt clay”.

 

CEMACON Real Estate Company was founded as a result of the agreement signed by 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 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. Even if the financial statements of 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.

 

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

 

Consolidated Statement of financial position – Preliminary Results 31st of December 2019

 



ASSETS

31-Dec-19

31-Dec-18

2019 vs 2018

2019 vs 2018

NON-CURRENT ASSETS

LEI

LEI

LEI

%

Property, plant and equipment

159,895,239

134,042,143

25,853,096

19%

Investment property

8,442,499

-

8,442,499

100%

Intangible

4,955,192

2,355,508

2,599,683

110%

Right of use assets (IFRS 16)

7,239,143

-

7,239,143

100%

Investments

-

-

-

0%

Other non-current assets

339,625

108,893

230,732

212%

NON-CURRENT ASSETS TOTAL

180,871,698

136,506,544

44,365,154

33%

CURRENT ASSETS

 

 

   

Inventories

20,307,951

16,751,218

3,556,733

21%

Trade and other receivables

33,361,513

8,279,124

25,082,389

303%

Cash and cash equivalents

17,724,260

19,523,400

(1,799,140)

-9%

CURRENT ASSETS TOTAL

71,393,724

44,553,742

26,839,983

60%

Assets classified as held for sale

-

17,914,939

(17,914,93)

-100%

TOTAL ASSETS

252,265,422

198,975,224

53,290,197

27%

LIABILITIES

31-Dec-19

31-Dec-18

2019 vs 2018

2019 vs 2018

CURRENT LIABILITIES

LEI

LEI

LEI

%

Trade and other payables

21,679,228

15,936,959

5,742,270

36%

Loans and borrowings

10,013,370

7,907,532

2,105,838

27%

Lease liabilities (IFRS 16)

916,882

-

916,882

100%

Tax liability

997,771

-

997,771

100%

Provisions

12,825,911

5,527,445

7,298,466

132%

CURRENT LIABILITIES TOTAL

46,433,162

29,371,936

17,061,226

58%

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

Non-current trade and other liabilities

-

-

-

0%

Loans and borrowings

35,773,123

39,499,833

(3,726,710)

-9%

Lease liabilities (IFRS 16)

6,326,946

-

6,326,946

100%

Grants received

993,480

1,007,553

(14,074)

-1%

Deferred tax

899,566

899,566

-

0%

Provisions

2,233,892

2,043,025

190,867

9%

NON-CURRENT LIABILITIES TOTAL

46,227,007

43,449,977

2,777,030

6%

 

 

 

 

 

TOTAL LIABILITIES

92,660,169

72,821,913

19,838,256

27%

 

 

 

 

 

NET ASSETS

159,605,253

126,153,311

33,451,942

27%

 

 

 

 

 

EQUITY

 

 

 

 

Issued capital as per IFRS

59,779,702

57,067,443

2,712,259

5%

TOTAL EQUITY

159,605,253

126,153,311

33,451,942

27%

 

In the context of the early repayment of the loan contracted by Cemacon Real Estate from the Commercial Bank of Romania (action completed in January 2019), the credit agreement ceased its effect, consequently the constraint imposed by the bank to sell the assets ceased. Cemacon, on a consolidated level, decided that, in the third quarter of 2019, it would withdraw the group of assets held for sale, according to IFRS 5, thus modifying the treatment in accordance with IAS 40 - real estate investments, respectively IAS 16 - tangible assets.

 

Thus, in the consolidated financial statements from the third quarter, the modification of the treatment from IFRS 5, implies:

-        Treatment of the land within the Zalau factory and of the constructions, as well as the immobilizations in progress according to IAS 16;

-        Land treatment from Tunari quarry and the Stejarul building according to IAS 40.

-       

In December 2019 was recorded the impact from revaluation, according to the regulations imposed by IAS 16 and IAS 40.

At the date of the presentation of the preliminary financial statements, the annual audit process is not completed. Thus, the analyzes regarding the reflection in the annual financial statements of the impact of the reevaluation of the tangible assets at 31.12.2019 are not finalized; in the current form, the positive impact of these reevaluations is reflected by gains from the reassessment of assets in the amount of 5,542,875 lei (net value) and is recorded on the line “Other gains and losses” in the Financial Statements.

 

Consolidated Profit and Loss Account – Preliminary Results 12 Months 2019

 

 

31-Dec-19

31-Dec-18

2019 vs 2018

2019 vs 2018

 

LEI

LEI

LEI

%

         

Sales revenues

           143,011,750

102,560,563

      40,451,187

39%

 

 

 

 

 

Other operating revenues

             3,938,403

1,108,239

2,830,164

253%

Other gains and losses

             (5,584,245)

     (1,321,189)

   (4,263,056)

323%

Change in inventories of FG & WIP

               4,712,072

     9,208,728

      (4,496,656)

-49%

 

 

 

 

 

Raw material and consumables used

           (28,797,496)

(22,912,874)

(5,884,622)

26%

Personnel Expenses

           (24,922,738)

(20,761,326)

(4,161,412)

20%

Other operating expenses

           (45,910,198)

(36,674,226)

(9,235,972)

25%

 

 

 

 

 

EBITDA

45,381,041

32,207,778

      13,173,263

41%

Depreciation and amortization expenses

            (16,998,644)

     (8,411,373)

  (8,587,271)

102%

Income impairment of assets

2,251,684

-

2,251,684

100%

EBIT

29,448,904

23,796,405

      5,652,499

24%

Financial income

1,333,312

820,618

512,694

62%

Financial expenses

(4,037,608)

(3,334,912)

(702,696)

21%

Financial result

             (2,704,296)

(2,514,294)

(190,002)

8%

 

 

 

 

 

Profit before tax

             26,744,608

20,282,248

6,462,359

32%

Income tax expenses

             (4,121,063)

(2,401,554)

(1,719,509)

72%

Profit after tax

22,623,545

17,880,694

 4,742,850

27%

Total other elements of

other comprehensive income

                               -  

(248,047)

         248,047

-100%

Comprehensive income total

22,623,545

17,632,647

4,990,897

28%

* At the time of presentation of the preliminary results 2019, no other comprehensive income and deferred tax items have been computed.

** EBITDA = Operating profit + Expenses with depreciation + Financial discounts granted - Income impairment of non-current assets

 

Consolidated Statement of Changes in Equity – Preliminary Results for 31st December 2019

 

 Issued capital and adjustments

Share Premium

Reevaluation reserve for HFS assets

 Reevaluation reserves

 Legal reserves

 Other reserves

 Undistributed result

Accumulated Other comprehensive income

 1st application of IAS 29

Total

31-Dec-18

57,067,443

144

5,355,495

13,350,044

3,353,104

9,557,916

35,559,192

1,909,975

-

126,153,311

Rezultatul global curent

-

-

-

-

-

-

22,623,545

-

-

22,623,545

Current global result

 

 

 

 

 

 

 

 

 

 

Diferente capitalizate impozitului amanat

-

-

-

-

-

-

-

-

-

-

Capitalised differences related to deffered tax

 

 

 

 

 

 

 

 

 

 

Majorare capital social

183,659

-

-

-

-

-

-

-

-

183,659

Increase in equity

 

 

 

 

 

 

 

 

 

 

Acoperire pierdere

-

-

-

-

-

-

-

-

-

-

Loss coverage

 

 

 

 

 

 

 

 

 

 

Alte elemente de capitaluri propri (beneficii angajati)

2,528,601

252,860

-

-

-

-

-

(2,781,461)

-

-

Accumulated Other comprehensive income (employee benefits)

 

 

 

 

 

 

 

 

 

 

Rezerva din reevaluare realizata aferenta vanzarilor

-

-

(5,355,495)

14,613,961

-

-

1,386,271

-

-

10,644,737

Reevaluation reserve related to sales

 

 

 

 

 

 

 

 

 

 

Constituire rezerva legala

-

-

-

-

1,859,781

-

(1,859,781)

-

-

-

Legal reserve

 

 

 

 

 

 

 

 

 

 

Alte rezerve

-

-

-

-

-

11,408,166

(11,408,166)

-

-

-

Other reserve

                   

31-Dec-19

59,779,703

253,004

-

27,964,004

5,212,885

20,966,082

46,301,061

(871,486)

-

159,605,252

 

Consolidated Statement of Cash Flow – Preliminary Results for 31st December 2019

 

31-Dec-19

31-Dec-18

Fluxuri din activitati de exploatare

LEI

LEI

Cash flow from operating activities

 

 

Incasari de la clienti

   144,439,695

   129,006,519

Customer encashments

 

 

Plati catre furnizori

    (82,698,180)

    (68,481,406)

Supplier payments

 

 

Plati catre angajati

    (17,721,016)

    (11,583,003)

Payments to employees

 

 

Plati impozite si taxe

    (19,604,489)

    (20,194,282)

Tax Payments

 

 

Impozit pe profit platit

      (2,329,537)

      (3,448,546)

Income Tax Paid

 

 

Incasari din asigurari

           154,135

           113,183

Inssurance encashments

 

 

Plati de asigurari

         (500,884)

         (661,225)

Insurrance payments

 

 

Dobanzi platite

      (2,243,425)

      (3,668,870)

Interest Paid

 

 

Alte incasari

132,525

-

Other Encashmants

 

 

Alte plati

-

-

Other Payments

 

 

 

Trezoreria neta din activitati de exploatare

19,628,824

21,082,370

Cash from operating activities

 

 

     

Fluxuri de trezorerie din activitati de investitii

   

Cash flow from investing activities

 

 

Plati pentru achizitionarea de actiuni

-

-

Payments for aquiring shares

 

 

Plati pentru achizitionarea de imobilizari corporale

    (12,761,054)

    (14,168,445)

Payments for aquiring assets

 

 

Incasari din vanzarea de imobilizari corporale

       516,684

       1,751,201

Encashments from sold assets

 

 

Dobanzi incasate

           115,356

           287,580

Encashments from interest

 

 

Credite catre parti afiliate

-

-

Loans to affiliated parties

 

 

Dividende incasate

-

-

Encashments from dividends

 

 

 

Trezoreria neta din activitati de investitie

(12,129,014)

(12,129,664)

Cash from investing activities

 

 

 

 

31-Dec-19

31-Dec-18

Fluxuri din activitati de exploatare

LEI

LEI

Cash flow from operating activities

   

Fluxuri de trezorerie din activitati de finantare

   

Cash flow from financing activities

   

Incasari din aport de capital

110,320

73,339

Encashments from share capital increase

 

 

Incasari din imprumuturi

-

-

Encashments from loans

 

 

Plata datoriilor aferente leasing-ului financiar

(2,713,025)

(2,175,296)

Payments for financial lease

 

 

Rambursari credite

(6,666,000)

(22,553,109)

Dividends paid and bank interest paid

 

 

Incasari garantie achizitionare actiuni

-

940,419

Encashments from share purchase

 

 

Plata garantie achizitionare actiuni

(12,035)

(179,639)

Payment for share purchase

 

 

 

Trezoreria neta din activitati de finantare

(9,280,740)

(23,894,286)

Cash from financing activities

 

 

 

Efectul variatiilor cursului de schimb

(18,210)

(61,909)

Effect of exchange rate changes

 

 

 

Crestere /scadere neta de numerar

(1,799,140)

(15,003,489)

Net increase/decrease in cash and cash equivalents

 

 

 

Numerar si echivalente de numerar la inceputul perioadei

19,523,400

34,526,889

Cash and cash equivalents at beginning of period

 

 

 

Numerar si echivalente de numerar la sfarsitul perioadei

17,724,260

19,523,400

Cash and cash equivalents at end of period

 

 

 

 

 

 

***

The report, together with the related documents, can be consulted starting with 28 February 2020 at 18:00 at the company headquarters on Calea Turzii Street, no. 178K, Hexagon Offices, Cluj-Napoca or electronically on the company's website: www.cemacon.ro and on the Bucharest Stock Exchange website: www.bvb.ro

 

 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; the company management is professional, independent, having strong sector expertise.

 



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