2020 Preliminary financial results
12 Month Performance 2020 - Preliminary Results
þ 40,11 milioane lei operational profit (EBITDA)
þ Net Turnover: 125,25 million lei (25,7 million Euros)
þ Cash 2.9 times higher than in December 2019
General Manager Statement
“The year 2020 was indisputably marked by the pandemic and its effects. Especially in the period of sudden debut, both the decisions of the authorities and those in the business environment were very prudent and then influenced the performance of the rest of the year. Our decision was not to stop the activity, but to take advantage of this temporary calm in the market for the development of some maintenance works at the factories necessary for the increase of the production performances.
After the emergency period in April-May, at Cemacon, despite the uncertainties caused by the evolution of the pandemic, we maintained the objectives at an ambitious level. The reality in the residential construction sector supported us because, especially in the 3rd quarter, the masonry market performed at high demand levels.
Sales performed very well so that product stocks were under constant pressure, protecting sales prices. The annual turnover decreased by 13% compared to 2019, but considering the emergency period from April to May, the performance was a positive one. Thus, the operational profitability, which did not benefit from unique positive events, was 20% lower, given that 2019 was a peak economic cycle with record financial results. However, our satisfaction is the consistent exceeding of the 2018 benchmarks both in terms of business volume and operational profitability.
In addition, the sharp decrease in indebtedness, reached below the level of liquidities that have increased strongly, the degree of coverage with debt insurance measures, the low level of product stocks give a lot of financial solidity to the business.
In 2020, the implementation of projects with European non-reimbursable financing went very well, thus laying the foundations for improving profitability and quality in the next period. We are approaching 2021 with confidence and growth objectives and with a team prepared through competence and motivation. "
Profit and loss Account – Preliminary 12 Months Results 2020
In an economic context marked by the epidemiological situation generated by the Sars-Cov2 virus, Cemacon registered a net turnover of over 125 million lei. The main revenues were realized from the sale of finished products; ceramic blocks, lintels and from the sale of goods: basalt mineral wool, chimneys, mortars and masonry plasters.
The variation of inventories registers lower values than in the previous period as a result of the gap between the quantities produced and sold in the period; especially in the second half and the end of the year, there were continuous pressures on available stocks so that it came out of the year with lower stocks than at the beginning of 2020. The amounts related to other gains or losses highlight the cancellation of the provisions established in the previous year, as well as the establishment of provisions in the current year.
Expenditures on raw materials and materials, as well as operating expenses decreased compared to the same period of 2019, as a result of the decrease in production activity during the lockdown period of April-May 2020, when extensive maintenance works were carried out, for the first time in the last 5 years.
In the absence of one-off transactions, for the period ended December 30, 2020 CEMACON has an operating profit of 40,107,787 lei and a net profit of 22,853,070 lei.
|
|
31-Dec-20
|
31-Dec-19
|
2020 vs 2019
|
2020 vs 2019
|
|
|
LEI
|
LEI
|
LEI
|
%
|
|
Gross Turnover
|
134,456,242
|
157,260,004
|
(22,803,762)
|
-15%
|
|
Net Turnover
|
125,249,908
|
143,607,041
|
(18,357,133)
|
-13%
|
|
Sales revenues
|
125,216,403
|
143,011,750
|
(17,795,347)
|
-12%
|
|
Other operating revenues
|
3,601,200
|
3,827,650
|
(226,450)
|
-6%
|
|
Other gains and losses
|
(1,860,289)
|
(3,250,883)
|
1,390,594
|
-43%
|
|
Change in inventories of FG & WIP
|
1,759,783
|
4,712,072
|
(2,952,289)
|
-63%
|
|
|
|
|
|
|
|
Raw materials and consumables
|
(22,031,384)
|
(28,797,496)
|
6,766,112
|
-23%
|
|
Personnel expenses
|
(28,637,701)
|
(24,836,226)
|
(3,801,475)
|
15%
|
|
Other operating expenses
|
(39,835,492)
|
(45,404,685)
|
5,569,193
|
-12%
|
|
EBITDA
|
40,107,787
|
50,379,235
|
(10,271,448)
|
-20%
|
|
Depreciation and amortization expenses
|
(11,739,237)
|
(10,738,341)
|
(1,000,896)
|
9%
|
|
Income impairment of assets
|
-
|
68,124
|
(68,124)
|
-100%
|
|
EBIT
|
26,473,283
|
38,523,841
|
(12,050,558)
|
-31%
|
|
Financial income
|
1,458,832
|
1,751,377
|
(292,545)
|
-17%
|
|
Financial expenses
|
(2,597,302)
|
(3,079,590)
|
482,288
|
-16%
|
|
Financial result
|
(1,138,468)
|
(1,328,213)
|
189,745
|
-14%
|
|
|
|
|
|
|
|
Profit before tax*
|
25,334,813
|
37,195,628
|
(11,860,816)
|
-32%
|
|
Income tax expenses
|
(2,481,743)
|
(3,098,057)
|
616,314
|
-20%
|
|
Profit after tax
|
22,853,070
|
34,097,571
|
(11,244,502)
|
-33%
|
|
Total other elements of
other comprehensive income
|
-
|
3,339,698
|
(3,339,698)
|
-100%
|
|
Comprehensive income total
|
22,853,070
|
37,437,269
|
(14,584,200)
|
-39%
|
* At the time of presentation of the preliminary results for 2020, 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 31 Decembrie 2020
|
|
31-Dec-20
|
31-Dec-19
|
2020 vs 2019
|
2020 vs 2019
|
|
|
LEI
|
LEI
|
LEI
|
%
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
Property, plant and equipment
|
138,657,142
|
131,986,455
|
6,670,687
|
5%
|
|
Investment property
|
8,202,483
|
8,202,483
|
-
|
0%
|
|
Intangible
|
5,237,579
|
4,750,087
|
487,492
|
10%
|
|
Rights of use assets
|
20,309,922
|
22,081,760
|
(1,771,838)
|
-8%
|
|
Investments
|
45,200
|
45,200
|
-
|
0%
|
|
Other non-current assets
|
347,162
|
339,627
|
7,535
|
2%
|
|
NON-CURRENT ASSETS TOTAL
|
172,799,488
|
167,405,612
|
5,393,877
|
3%
|
|
CURRENT ASSETS
|
|
|
|
|
|
Inventories
|
18,314,302
|
20,307,951
|
(1,993,649)
|
-10%
|
|
Trade and other receivables
|
26,767,338
|
49,205,783
|
(22,438,445)
|
-46%
|
|
Cash and cash equivalents
|
51,314,569
|
17,663,070
|
33,651,499
|
191%
|
|
CURRENT ASSETS TOTAL
|
96,396,209
|
87,176,804
|
9,219,405
|
11%
|
|
TOTAL ASSETS
|
269,195,697
|
254,582,416
|
14,613,281
|
6%
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade and other payables
|
20,260,545
|
21,623,217
|
(1,362,672)
|
-6%
|
|
Loans and borrowings
|
10,167,693
|
7,823,481
|
2,344,212
|
30%
|
|
Lease liabilities
|
726,176
|
916,882
|
(190,706)
|
-21%
|
|
Obligations under finance leases
|
2,183,262
|
2,189,889
|
(6,627)
|
0%
|
|
Grants received
|
114,072
|
99,911
|
14,161
|
14%
|
|
Tax liability
|
157,353
|
989,652
|
(832,299)
|
-84%
|
|
Provisions
|
7,791,760
|
9,091,664
|
(1,299,904)
|
-14%
|
|
CURRENT LIABILITIES TOTAL
|
41,400,861
|
42,734,696
|
(1,333,835)
|
-3%
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
Non-current trade and other liabilities
|
-
|
-
|
-
|
0%
|
|
Loans and borrowings
|
21,363,341
|
27,941,650
|
(6,578,309)
|
-24%
|
|
Lease liabilities
|
5,809,774
|
6,326,946
|
(517,171)
|
-8%
|
|
Obligations under finance leases
|
5,971,820
|
7,831,473
|
(1,859,653)
|
-24%
|
|
Grants received
|
2,808,666
|
893,569
|
1,915,097
|
214%
|
|
Deferred tax
|
555,530
|
555,530
|
(0)
|
0%
|
|
Provisions
|
2,367,976
|
2,233,892
|
134,084
|
6%
|
|
NON-CURRENT LIABILITIES TOTAL
|
38,877,107
|
45,783,060
|
(6,905,952)
|
-15%
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
80,277,968
|
88,517,756
|
(11,044,600)
|
-9%
|
|
|
|
|
|
|
|
NET ASSETS
|
188,917,729
|
166,064,660
|
22,732,182
|
14%
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Issued capital as per IFRS
|
59,779,702
|
59,779,702
|
-
|
0%
|
|
TOTAL EQUITY
|
188,917,729
|
166,064,660
|
22,732,182
|
14%
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, reported as of December 31, 2019, did not register significant changes - these are determined by investments made during the period and partially offset by depreciation, one of the most important investment projects being the Cogeneration Plant being implemented through the Large Infrastructure Operational Program 6.4.
Current assets increased by 11% compared to the end of 2019, stocks remaining at the optimal level to ensure the need for ceramic blocks in the next period and cash increased significantly due to the collection of receivables at the end of 2019.
At the level of debts, there is a decrease of 15%, mainly due to the repayment of loans and interest to the financing entities. Following the application of the IFRS 16 standard, the company recognized the leasing debt related to the lease agreements, corroborated with the increase of assets.
At the end of the period ended December 30, 2020, the company's net assets register an increase of 14% compared to the end of 2019, exceeding the amount of 188 million lei.
Main Financial Ratios
|
Main Financial Ratios
|
31-Dec-20
|
|
1. Current liquidity indicator
|
2.33
|
|
2. Leverage indicator
|
17%
|
|
3. Turnover speed for client debit items (days)
|
103
|
|
4. Turnover speed for total assets
|
78%
|
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”.
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. 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.
The International Financial Reporting Standards (IFRS) have been applied when preparing the consolidated financial statements.
According to the Decision of the Extraordinary General Meeting of Shareholders of Cemacon SA, dated 29.10.2020, it was approved in principle the merger by absorption by CEMACON SA of Cemacon Real Estate SRL.
Consolidated Statement of Financial Position – Preliminary Results 31st of December 2020
|
ASSETS
|
31-Dec-20
|
31-Dec-19
|
2020 vs 2019
|
2020 vs 2019
|
|
NON-CURRENT ASSETS
|
LEI
|
LEI
|
LEI
|
%
|
|
Property, plant and equipment
|
151,367,188
|
144,632,737
|
6,734,451
|
5%
|
|
Investment property
|
8,411,176
|
8,442,499
|
(31,323)
|
0%
|
|
Intangible
|
5,442,684
|
4,955,192
|
487,492
|
10%
|
|
Right of use assets
|
20,190,324
|
21,603,368
|
(1,413,044)
|
-7%
|
|
Investments
|
-
|
-
|
-
|
0%
|
|
Other non-current assets
|
1,656,731
|
1,649,196
|
7,535
|
0%
|
|
NON-CURRENT ASSETS TOTAL
|
187,068,103
|
181,282,992
|
5,785,112
|
3%
|
|
CURRENT ASSETS
|
|
|
|
|
|
Inventories
|
18,314,302
|
20,307,951
|
(1,993,649)
|
-10%
|
|
Trade and other receivables
|
6,568,357
|
30,047,150
|
(23,478,793)
|
-78%
|
|
Cash and cash equivalents
|
51,333,604
|
17,724,260
|
33,609,345
|
190%
|
|
CURRENT ASSETS TOTAL
|
76,216,263
|
68,079,361
|
8,136,903
|
12%
|
|
Assets classified as held for sale
|
-
|
-
|
-
|
0%
|
|
TOTAL ASSETS
|
263,284,367
|
249,362,352
|
13,922,014
|
6%
|
|
LIABILITIES
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade and other payables
|
20,230,824
|
21,679,228
|
(1,448,404)
|
-7%
|
|
Loans and borrowings
|
10,167,693
|
7,823,481
|
2,344,212
|
30%
|
|
Lease liabilities
|
606,578
|
555,171
|
51,406
|
9%
|
|
Obligations under finance leases
|
2,183,262
|
2,189,889
|
(6,627)
|
0%
|
|
Grants received
|
114,072
|
99,911
|
14,161
|
14%
|
|
Tax liability
|
157,353
|
989,652
|
(832,299)
|
-84%
|
|
Provisions
|
7,791,760
|
9,091,664
|
(1,299,904)
|
-14%
|
|
CURRENT LIABILITIES TOTAL
|
41,251,542
|
42,428,997
|
(1,177,455)
|
-3%
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
Non-current trade and other liabilities
|
-
|
-
|
-
|
0%
|
|
Loans and borrowings
|
21,363,341
|
27,941,650
|
(6,578,309)
|
-24%
|
|
Lease liabilities
|
5,809,774
|
6,210,264
|
(400,489)
|
-6%
|
|
Obligations under finance leases
|
5,971,820
|
7,831,473
|
(1,859,653)
|
-24%
|
|
Grants received
|
2,808,666
|
893,569
|
1,915,067
|
214%
|
|
Deferred tax
|
-
|
-
|
-
|
0%
|
|
Provisions
|
2,367,976
|
2,233,892
|
134,084
|
6%
|
|
NON-CURRENT LIABILITIES TOTAL
|
38,321,577
|
45,110,849
|
(6,789,272)
|
-15%
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
79,573,120
|
87,539,845
|
(7,966,725)
|
-9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
183,711,247
|
161,822,507
|
21,888,740
|
14%
|
|
EQUITY
|
|
|
|
|
|
Issued capital as per IFRS
|
59,779,702
|
59,779,702
|
-
|
0%
|
|
TOTAL EQUITY
|
183,711,247
|
161,822,507
|
21,888,740
|
14%
|
Consolidated Profit and Loss Account – Preliminary Results 12 Months 2020
|
|
31-Dec-20
|
31-Dec-19
|
2020 vs 2019
|
2020 vs 2019
|
|
|
LEI
|
LEI
|
LEI
|
%
|
|
Sales revenues
|
125,216,403
|
143,011,750
|
(17,795,347)
|
-12%
|
|
Other operating revenues
|
3,641,117
|
3,938,403
|
(297,286)
|
-8%
|
|
Other gains and losses
|
(1,671,914)
|
(5,584,245)
|
3,912,331
|
-70%
|
|
Change in inventories of FG & WIP
|
1,759,783
|
4,712,072
|
(2,952,289)
|
-63%
|
|
|
|
|
|
|
|
Raw material and consumables used
|
(22,031,384)
|
(28,797,496)
|
6,766,112
|
-23%
|
|
Personnel Expenses
|
(28,721,100)
|
(24,922,738)
|
(3,798,362)
|
15%
|
|
Other operating expenses
|
(40,183,191)
|
(45,910,198)
|
5,727,007
|
-12%
|
|
EBITDA
|
39,904,981
|
45,381,041
|
(5,476,060)
|
-12%
|
|
Depreciation and amortization expenses
|
(11,380,443)
|
(16,998,644)
|
5,618,202
|
-33%
|
|
Income impairment of assets
|
-
|
2,251,684
|
(2,251,684)
|
-100%
|
|
EBIT
|
26,629,271
|
29,448,904
|
(2,819,633)
|
-10%
|
|
Financial income
|
279,926
|
261,502
|
18,424
|
7%
|
|
Financial expenses
|
(2,538,712)
|
(2,965,798)
|
427,086
|
-14%
|
|
Financial result
|
(2,258,786)
|
(2,704,296)
|
445,510
|
-16%
|
|
|
|
|
|
|
|
Profit before tax
|
24,370,485
|
26,744,608
|
(2,374,123)
|
-9%
|
|
Income tax expenses
|
(2,481,743)
|
(1,460,479)
|
(1,021,264)
|
70%
|
|
Profit after tax
|
21,888,742
|
25,284,129
|
(3,395,387)
|
-13%
|
|
Total other elements of
other comprehensive income
|
-
|
10,201,409
|
(10,201,409)
|
-100%
|
|
Comprehensive income total
|
21,888,742
|
35,485,538
|
(13,596,796)
|
-38%
|
* At the time of presentation of the preliminary results 2020, 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