Cementos Molins increases net profit by 35% to 151 million euros in 2023.

The company has reported sales and earnings increases in all businesses and in most of the regions where it operates.

After exceeding the previous strategic plan one year ahead of schedule, the company is presenting a new strategic plan for the 2024-26 period.

Cementos Molins today announced its annual results for 2023. The year was characterized by a gradual slowdown in the markets during the second half of the year, as a result of an increasingly complex and uncertain global environment.

In this context, Cementos Molins’ sales amounted to 1,349 million euros, an increase of 6% over the previous year, with increases in all businesses and in most regions. This improvement in revenues was due to both the increase in sales volume and the positive impact of price management. In Argentina, business management during 2023 has ensured that the consequences of the country’s economic crisis have had only a moderate impact.

EBITDA reached 337 million euros, a 22% increase over the previous year, with the contribution of the businesses in Mexico and Spain being particularly noteworthy. This improvement in operating income is mainly supported by volume increases, the positive impact of efficiency plans and improved selling prices. On the other hand, the exchange rate has had an unfavorable impact, especially due to the strong devaluation of the Argentine peso in the fourth quarter. The EBITDA margin increased by 3.2 percentage points to 25.0%, recovering the erosion of the previous year.

Cementos Molins’ net income was 151 million euros, 35% higher than in the same period of the previous year. This increase is a consequence of the strong rise in operating profit, which in the previous year was negatively affected by the economic slowdown, high cost inflation and supply chain tensions. The effective tax rate in 2023 without hyperinflation has remained at 28%, contributing to the generation of welfare and wealth in the communities where the company has a presence.

Net financial debt continued to decline during the fourth quarter, reaching a net cash balance of €17 million. This solid financial position is a great lever for the development of new growth opportunities and for executing the investments planned in the 2030 sustainability roadmap.

“In 2023, we achieved record sales and earnings, despite an increasingly complex and uncertain global environment; we also once again demonstrated the strength of our business model by exceeding our targets.”

explains Julio Rodriguez, CEO of Cementos Molins.

“These results are the fruit of the effort and great commitment of our human team with more than 6,300 people and stimulate us to continue working on the company’s priority objective, our 2030 sustainability roadmap.”

adds Julio Rodriguez, CEO of Cementos Molins.

Two years of the Sustainability Roadmap 2030

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

New Strategic Plan 2024-26

After surpassing the previous Strategic Plan 2020-23 with one year to go, the Board of Directors has approved the new Strategic Plan for the period 2024-26, which aims for profitable and sustainable growth based on five pillars: agenda 2030, sustainable products and solutions, digital agenda, sustainable growth, and people. With this plan, a series of strategic initiatives grouped around the five priority pillars are launched. The objective for the next three years is organic growth with sales in a range between 3% and 4% on average per year, and EBITDA in a range between 4% and 5% on average per year.

Shareholder remuneration

On the other hand, the Board of Directors decided today to propose for approval at the next General Shareholders’ Meeting a dividend for the year of 0.92 euros per share, 35% higher than the previous year, which represents a pay-out of 40% and a yield of 4.7%. Considering the interim dividend distributed last December, the final dividend would be 0.52 euros per share, to be distributed in July 2024 if approved by the Shareholders’ Meeting. This decision is part of Cementos Molins’ desire to improve shareholder remuneration.

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