In the first half of 2019, Titan Group recorded growth in sales revenue in all regions of operations, with the exception of the Eastern Mediterranean. Consolidated turnover reached €785.4 million ($872.5 million), a 10.2% increase compared to the prior-year period, which was attributable to the strong performance of the U.S. market, growth in demand in Southeastern Europe and a modest sales recovery in Greece.
EBITDA remained flat at €122.2 million ($135.7 million) following challenging conditions in both Egypt and Turkey. The group’s net profit after minority interests and taxes was €13.3 million ($14.7 million) versus €24.8 million ($27.5 million) in the first half of 2018, a drop related to the strength of the U.S. dollar.
Activity in the United States continued to be strong, reflecting the healthy state of both the economy and the market. Demand for building materials was higher, compared to the previous year, across all Titan America markets, leading to volume and revenue growth across all products except fly ash. Profitability improved despite the higher costs of imported cement and logistics and the loss of fly ash revenues.
Turnover in the United States recorded a 13.9% increase (6.3% in U.S.$ terms) in the first half of 2019 reaching €471.8 million ($524.3 million). EBITDA increased 4.9% to €84.2 million ($93.5 million) compared to the prior-year period.
In Brazil, despite record wet weather, cement volumes at Apodi Cement were broadly stable while revenue for the first half increased by 7% reflecting better market dynamics.
Titan’s outlook is favorable in most of its markets of operation. In the United States, construction trends remain favorable in the regions where the group is active. The Portland Cement Association (PCA) forecast that cement consumption will increase by 2.3% in 2019 and by approximately 2% per annum through 2024. Titan Group is well positioned to take advantage of this growth, having a strong presence in expanding metropolitan areas and the operating leverage to meet growing demand.
In Brazil, political stability increases expectations for growth in construction and a lift in the cement market. Cement demand in northeastern Brazil where the group is present, is showing positive prospects which are driven by demographic growth and private building activity.