35,13 million lei operational profit (EBITDA)
22,68 million lei Net Profit
92,79 million lei Gross Turnover with 22% greater than Q3 2017
General Manager Statement
„We have closed another solid business quarter in which we chose the winning strategy to take advantage of the very positive market context.
We have completed some of our investment projects to increase product quality and complete product offerings, and we have created prerequisites for achieving higher margins in the future, benefiting from immediate positive results.
Operationally, the production activity worked well, and in the market we delivered quantities over the budget forecast.
We are at record levels with the main business indicator over the previous year and above the budget forecast: gross turnover 22% more than in 2017 and net profit 64% higher. We understand, however, that we are at the peak of a growth cycle and that, summing up the predominantly negative prerequisites for budgeering for 2019, such as electricity and gas price increases, the forecast for next year is more reserved.
The competitiveness of the production processes, the positive impact of recent investments, product innovation and production prescriptions, as well as the excellent partnership built with our distributors, together with the solid financial situation and the significant accumulated liquidity represent the premise of success in approaching the years to come, indifferent to contextually market."
Profit and loss Account – 3rd Quarter 2018
In a good market context, can be observed both a consolidation for the net turnover, that exceeds 87,000,000 lei, registering an increase of 20% compared to the same period of 2017, and an important growth in Operating Profit EBITDA; this performance was obtained through a qualitative sale and through optimizations in operational activities. At the level of other operating revenues there were no significant changes compared to 2017.
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 and also provisions made during the current period. Changes in inventory revenues recorded positive values due to the gap between the quantities produced and sold during the period.
Expenditure on raw materials and materials has grown by 20% as a result of the 7% increase in the quantity produced compared to the same period of the previous year, productivity marked by investments started at the end of 2017 and 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 29% increase over the previous year due to a 19% increase in the number of employees compared to the same period in 2017 as well as due to the legislative changes in the wage field implemented at the end of 2017 with effect from January 1, 2018.
At the level of operating expenses there were no significant changes compared to the previous period from last year.
For the period ended September 30, 2018 CEMACON has an operating profit (EBITDA) of 35,133,884 lei and a net profit of 22,684,772 lei.
|
|
30-Sep-18
|
30-Sep-17
|
2018 vs 2017
|
2018 vs 2017
|
|
|
LEI
|
LEI
|
LEI
|
%
|
|
|
|
|
|
|
|
Net Turnover
|
87,483,654
|
72,828,890
|
14,654,764
|
20%
|
|
Gross Turnover
|
92,792,329
|
76,278,791
|
16,513,538
|
22%
|
|
|
|
|
|
|
|
Sales revenues
|
87,482,092
|
72,828,268
|
14,653,824
|
20%
|
|
|
|
|
|
|
|
Other operating revenues
|
956,383
|
544,041
|
412,342
|
76%
|
|
Other gains and losses
|
1,766,992
|
2,830,903
|
(1,063,911)
|
-38%
|
|
Change in inventories of FG & WiP
|
2,335,087
|
(2,318,701)
|
4,653,789
|
-201%
|
|
|
|
|
|
|
|
Raw material and consumables used
|
(17,015,710)
|
(14,167,815)
|
(2,847,895)
|
20%
|
|
Personnel Expenses
|
(16,155,524)
|
(12,551,239)
|
(3,604,285)
|
29%
|
|
Other operating expenses
|
(25,070,711)
|
(25,155,917)
|
85,206
|
0%
|
|
|
|
|
|
|
|
EBITDA
|
35,133,884
|
23,174,526
|
11,959,358
|
52%
|
|
Depreciation and amortisation expenses
|
(5,857,513)
|
(5,187,363)
|
(670,150)
|
13%
|
|
|
|
|
|
|
|
EBIT
|
29,276,371
|
17,987,163
|
11,289,208
|
63%
|
|
Financial income
|
190,848
|
92,478
|
98,369
|
106%
|
|
Financial expenses
|
(2,605,572)
|
(1,914,820)
|
(690,753)
|
36%
|
|
Financial result
|
(2,414,725)
|
(1,822,342)
|
(592,383)
|
33%
|
|
|
|
|
|
|
|
Profit before tax
|
26,026,372
|
14,999,833
|
11,026,540
|
74%
|
|
Income tax expenses
|
(3,341,600)
|
(1,130,901)
|
(2,210,699)
|
100%
|
|
Profit after tax
|
22,684,772
|
13,868,932
|
8,815,841
|
64%
|
*At the time of presentation of the results for the 3rd Quarter of 2018, 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 – results for 30th of September 2018
|
ASSETS
|
30-Sept-18
|
31-Dec-17
|
2018 vs 2017
|
2018 vs 2017
|
|
NON-CURRENT ASSETS
|
LEI
|
LEI
|
LEI
|
%
|
|
Property, plant and equipment
|
130,027,164
|
121,601,156
|
8,426,009
|
7%
|
|
Intangible
|
1,058,045
|
418,124
|
639,921
|
153%
|
|
Investments
|
200
|
200
|
-
|
0%
|
|
Other non-current assets
|
1,049,312
|
1,039,555
|
9,758
|
1%
|
|
NON-CURRENT ASSETS TOTAL
|
132,134,722
|
123,059,035
|
9,075,687
|
7%
|
|
CURRENT ASSETS
|
|
|
|
|
|
Inventories
|
10,657,425
|
10,798,030
|
(140,605)
|
-1%
|
|
Trade and other receivables
|
15,988,435
|
11,739,027
|
4,249,408
|
36%
|
|
Cash and cash equivalents
|
40,207,022
|
34,498,549
|
5,708,473
|
17%
|
|
CURRENT ASSETS TOTAL
|
66,852,882
|
57,035,606
|
9,817,275
|
17%
|
|
Assets classified as held for sale
|
1,277,495
|
1,277,495
|
-
|
0%
|
|
TOTAL ASSETS
|
200,265,098
|
181,372,136
|
18,892,962
|
10%
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade and other payables
|
13,342,394
|
13,026,584
|
315,810
|
2%
|
|
Loans and borrowings
|
7,178,875
|
6,724,373
|
454,502
|
7%
|
|
Tax liability
|
1,382,762
|
106,946
|
1,275,816
|
1193%
|
|
Provisions
|
2,638,325
|
4,412,809
|
(1,774,484)
|
-40%
|
|
CURRENT LIABILITIES TOTAL
|
24,542,356
|
24,270,712
|
271,644
|
1%
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
Non-current trade and other liabilities
|
-
|
-
|
-
|
0%
|
|
Loans and borrowings
|
39,446,401
|
44,254,596
|
(4,808,195)
|
-11%
|
|
Grants received
|
1,026,464
|
1,083,195
|
(56,731)
|
-5%
|
|
Deferred tax
|
1,539,770
|
1,539,770
|
-
|
0%
|
|
Provisions
|
989,756
|
945,520
|
44,236
|
0%
|
|
NON-CURRENT LIABILITIES TOTAL
|
43,002,391
|
47,823,081
|
(4,820,690)
|
-10%
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
67,544,747
|
72,093,793
|
(4,549,046)
|
-6%
|
|
|
|
|
|
|
|
NET ASSETS
|
132,720,351
|
109,278,343
|
23,442,008
|
21%
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Issued capital
|
57,067,443
|
20,613,371
|
36,454,072
|
177%
|
|
TOTAL EQUITY
|
132,720,351
|
109,278,343
|
23,442,009
|
21%
|
The 7% increase in fixed assets as of December 31, 2017 is determined by the commissioning of the assets acquired during the period and partially compensated by the depreciation recorded during the period and the reclassification of some non-productive assets as being held for sale.
Current assets increased with 17% compared to the end of 2017. Inventories variation compared with December 31, 2017 is not significant, as it can be seen below:
Receivables increased by 36% as a result of the business activity carried out during the period (24% higher than in the same period of the previous year); Cash and cash equivalents increased by 17% as a result of intense business activity during the period.
Commercial debts increased by 2% as of December 31, 2017.
Bank debts and loans recorded a 9% decrease as compared to the end of 2017, a change caused both by contracting financial leasing for the implementation of the approved investment programs for 2017-2018 and by the reduction of the bank loan by repayment of principal and interest rates according to the repayment schedule, being no interruptions or delays in this process.
Current corporate income tax liabilities increased significantly due to positive financial results at the end of the 3rd Quarter of 2018.
The share capital recorded changes in the 3rd Quarter of 2018, as 364,540,717 new shares were issued, the company reaching 478,530,935 shares. The increase from the equity level is also generated by the result obtained during the period.
For the period ended 30 September 2018, the net assets of the company recorded a 21% increase as compared to the end of 2017, exceeding 132,000,000 lei.
Main Financial Ratios
|
Main financial ratios
|
30-Sept-18
|
30-Sept-17
|
|
1. Current liquidity indicator
|
2.78
|
2.70
|
|
2. Leverage indicator
|
35%
|
52%
|
|
3. Turnover speed for client debit items (days)
|
43
|
55
|
|
4. Turnover speed for total assets
|
66%
|
62%
|
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. 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 financial position – Results 30th of September 2018
|
ASSETS
|
30-Sept-18
|
31-Dec-17
|
2018 vs 2017
|
2018 vs 2017
|
|
NON-CURRENT ASSETS
|
LEI
|
LEI
|
LEI
|
%
|
|
Property, plant and equipment
|
130,027,164
|
121,601,156
|
8,426,008
|
7%
|
|
Intangible
|
1,058,045
|
418,124
|
639,921
|
153%
|
|
Investments
|
-
|
-
|
-
|
0%
|
|
Other non-current assets
|
1,049,312
|
1,039,555
|
9,757
|
1%
|
|
NON-CURRENT ASSETS TOTAL
|
132,134,521
|
123,058,835
|
9,075,686
|
7%
|
|
CURRENT ASSETS
|
|
|
|
|
|
Inventories
|
10,657,425
|
10,798,030
|
(140,605)
|
-1%
|
|
Trade and other receivables
|
14,713,193
|
10,664,137
|
4,049,056
|
38%
|
|
Cash and cash equivalents
|
40,213,669
|
34,526,889
|
5,686,780
|
16%
|
|
CURRENT ASSETS TOTAL
|
65,584,288
|
55,989,056
|
9,595,232
|
17%
|
|
Assets classified as held for sale
|
17,922,162
|
19,238,703
|
(1,316,541)
|
-7%
|
|
TOTAL ASSETS
|
215,640,970
|
198,286,594
|
17,354,376
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
30-Sept-18
|
31-Dec-17
|
2018 vs 2017
|
2018 vs 2017
|
|
CURRENT LIABILITIES
|
LEI
|
LEI
|
LEI
|
%
|
|
Trade and other payables
|
14,666,723
|
14,203,788
|
462,935
|
3%
|
|
Loans and borrowings
|
7,178,875
|
6,724,373
|
454,502
|
7%
|
|
Tax liability
|
1,382,762
|
106,946
|
1,275,816
|
1193%
|
|
Provisions
|
2,638,325
|
4,412,808
|
(1,774,483)
|
-40%
|
|
CURRENT LIABILITIES TOTAL
|
25,866,685
|
25,447,915
|
418,770
|
2%
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
Non-current trade and other liabilities
|
-
|
-
|
-
|
0%
|
|
Loans and borrowings
|
55,322,593
|
61,473,144
|
(6,150,551)
|
-10%
|
|
Grants received
|
1,026,464
|
1,083,195
|
(56,731)
|
-5%
|
|
Deferred tax
|
1,312,250
|
1,312,250
|
0
|
100%
|
|
Provisions
|
989,756
|
945,520
|
44,236
|
0%
|
|
NON-CURRENT LIABILITIES TOTAL
|
58,651,064
|
64,814,109
|
(6,163,045)
|
-10%
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
84,517,749
|
90,262,024
|
(5,744,275)
|
-6%
|
|
|
|
|
|
|
|
NET ASSETS
|
131,123,221
|
108,024,569
|
23,098,652
|
21%
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Issued capital
|
57,067,443
|
20,613,371
|
36,454,072
|
177%
|
|
TOTAL EQUITY
|
131,123,221
|
108,024,569
|
23,098,652
|
21%
|
Consolidated Profit and Loss Account – Results for 3rd Quarter of 2018
|
|
30-Sep-18
|
30-Sep-17
|
2018 vs 2017
|
2018 vs 2017
|
|
|
LEI
|
LEI
|
LEI
|
%
|
|
|
|
|
|
|
|
Sales revenues
|
87,482,092
|
72,833,446
|
14,648,646
|
20%
|
|
|
|
|
|
|
|
Other operating revenues
|
976,097
|
605,951
|
370,146
|
61%
|
|
Other gains and losses
|
1,805,399
|
2,855,859
|
(1,050,460)
|
-37%
|
|
Change in inventories of FG & WiP
|
2,335,087
|
(2,318,702)
|
4,653,789
|
-201%
|
|
|
|
|
|
|
|
Raw material and consumables used
|
(17,015,742)
|
(14,173,339)
|
(2,842,403)
|
20%
|
|
Personnel Expenses
|
(16,267,795)
|
(12,631,538)
|
(3,636,257)
|
29%
|
|
Other operating expenses
|
(25,088,047)
|
(25,200,570)
|
112,523
|
0%
|
|
|
|
|
|
|
|
EBITDA
|
35,062,367
|
23,136,093
|
11,926,274
|
52%
|
|
Depreciation and amortisation expenses
|
(5,857,513)
|
(5,187,363)
|
(670,150)
|
13%
|
|
|
|
|
|
|
|
EBIT
|
29,204,854
|
17,948,730
|
11,256,124
|
63%
|
|
Financial income
|
579,705
|
369,029
|
210,676
|
57%
|
|
Financial expenses
|
(3,249,109)
|
(2,653,814)
|
(595,295)
|
22%
|
|
Financial result
|
(2,669,403)
|
(2,284,785)
|
(384,618)
|
17%
|
|
|
|
|
|
|
|
Profit before tax
|
25,700,176
|
14,498,959
|
11,201,217
|
77%
|
|
Income tax expenses
|
(3,358,761)
|
(1,130,901)
|
(2,227,860)
|
0%
|
|
Profit after tax
|
22,341,415
|
13,368,058
|
8,973,357
|
67%
|
*At the time of presentation of the results for the 3rd Quarter of 2018, 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
***
The report, together with the related documents, can be consulted starting with 7 November 2018 at 9:00 at the company headquarters on Str.Dorobantilor, Nr.48, 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 and mainly owned by institutional shareholders, Romanian and foreign investment funds; the company management is professional, independent, having strong sector expertise.