Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Titan Cement International SA (TTCIF, Financial) reported record results for 2024, with a 9.6% increase in EBITDA, despite adverse weather conditions in the last quarter.
- The company achieved margin expansion and continued to invest heavily in supply chain, capacity, and logistics optimization.
- Titan Cement International SA (TTCIF) completed four bolt-on acquisitions, adding 100 million tonnes to its reserves in aggregates.
- The company successfully listed its US subsidiary on the New York Stock Exchange, raising $393 million.
- Titan Cement International SA (TTCIF) achieved a significant reduction in CO2 emissions, with an 11% decrease since 2020, and was recognized for its climate change efforts by CDP, Financial Times, and TIME magazine.
Negative Points
- Adverse weather conditions in the US negatively impacted fourth-quarter volumes, causing a 4% drop in EBITDA.
- The company faced a goodwill impairment charge of EUR17 million in Turkey, affecting net profit.
- Currency devaluation in Egypt and Turkey negatively impacted profitability, despite increased domestic volumes.
- The construction activity in Western Europe declined, affecting export volumes to European terminals.
- The company anticipates increased volatility in the geopolitical and geoeconomic context, which could impact future performance.
Q & A Highlights
Q: Can you discuss how Titan Cement will manage US imports after selling the Eastern Turkish plant, considering the carbon costs associated with Greek supply?
A: Marcel-Constantin Cobuz, Chairman of Group Executive Committee, explained that Titan Cement will continue supplying the US market from Greek plants, which remain competitive. The company is also exploring options with the new buyers of the Turkish plant for potential purchase agreements.
Q: What is the timeline for the IFESTOS carbon capture project, and how will the EU's EUR230 million funding be disbursed?
A: Marcel-Constantin Cobuz stated that the project is in the pre-feasibility stage, with a final investment decision expected by early 2026. The EU funding will be disbursed primarily in 2026 and 2027, with a significant portion at the end of the period.
Q: Can you elaborate on the supplementary cementitious materials joint venture in India?
A: Marcel-Constantin Cobuz mentioned that the joint venture will start with 500,000 tons of fly ash, with plans to increase capacity to 2 million tons. This partnership strengthens Titan's capacity to source fly ash globally.
Q: What factors contributed to the EBITDA margin expansion, and can we expect similar improvements in the future?
A: Michael Colakides, Group CFO, attributed the margin expansion to operational efficiencies, digitalization, and investments in alternative fuels and logistics. He expects further improvements in 2025.
Q: What is the outlook for US infrastructure spending, and how does it impact Titan Cement's operations?
A: Marcel-Constantin Cobuz expressed optimism due to a strong backlog of infrastructure projects, particularly in Florida and the Mid-Atlantic region. He highlighted the positive financial state of these regions and ongoing projects as growth drivers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
