Akçansa Çimento Sanayi ve Ticaret Anonim Sirketi : 2023 Q3 (EN)
October 24, 2023 at 08:24 pm
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Q3 2023 Akçansa Results
October 26, 2023
Jason South, CFO
Key messages for Q3 2023
Strong operational performance:
Q3 revenue up 66%, EBITDA up 216%
9M revenue up 81%, EBITDA up 204%
Competent distribution network enabled Akçansa benefit from robust domestic demand as Turkish cement exports were contracting
Higher energy margin and fixed cost discipline drove gross margin to 31.3% for Q3 and 29.2% for the 9M
Net Profit improved 59% for the third quarter and by 147% for the first nine months reaching 1.310,1 mTL and 2,867 mTL, respectively
Strong improvement in operational cash flow and financial income resulted in net cash position of 1 bTL
Sustainability KPIs on track:
Refinitive score reached 88 and ranked as the second among 119 global peers in building material industry.
Alternative fuel (AF) rate sustained over 20%
Akçansa has been included in BIST- Participation 50 Index as of October
Total cement demand in Turkey increased by 20% in July '23 vs '22 with 36.3 mio t
7%
16%
31%
32%
7%
23%
28%
Akcansa Cement
Factories
Akcansa's core market Marmara Region represents 25% of total domestic market.
Source: TCMA and company estimations
3
Flexible distribution network key as market demand shifts
Dom. Cement (7-M YTD)
Exp. Cement (9M)
Exp. Clinker (9M)
Turkish Cement Market (kTon)
20%
16%
2022
2023
36,343
31%
7%
7%
28%
30,226
7,842 9,103
6,230
7,726
32%
+23%
5,918
4,871
3,593 3,834
3,739 4,014
2,045 2,698
2,218 2,738
Marmara
Aegean
Blacksea
Mediterranean C. Anatolia
E. Anatolia
S.E. Anatolia
Total
-19%
9,734
-22%
7,866
5,894
29%
4,605
75%
-69%
116%
4%
1,635 2,117
1,862
141
246
92
199
109
113
586
USA
Israel
Italy
Albania
Romania
Other
Total
-74%
-61%
6,698
4,601
-7%
-30%
-13%
-58%
-46%
2,620
1,198
431
400
499
348
316
276
505
211
346
188
Spain
Belgium
Romania
Israel
Italy
Other
Total
Akcansa Revenue Distribution
2022 9M
2022 FY
2023 9M
42%
34%
53%
47%
58%
66%
Domestic* Export
Comments:
As of July, Turkish domestic cement demand was up 20%, with a 16% increase in Akçansa's core Marmara market
Export cement decreased by 19% 9M YoY driven USA as historically low freight rates increase competitiveness of southeast Asian suppliers
Clinker exports continue lower than prior year as volume was largely shifted to domestic markets to match increasing demand
Source:
Central Anatolian Exporters Association (OAIB) for exports TCMA and company estimations for domestic cement demand *Domestic sales excluding RMC
4
Company
Performance
5
Volume in line with expectations, seasonality drove in YTD CEM decrease
+0.9%
+12.6%
-3.2%
1,974
5,464
1,956
5,292
1,754
-3.0%
+13.7%
+10.1%
772
658
749
1,924
2,118
CEM (mt)
RMC (mm3)
CEM (mt)
RMC (mm3)
3Q22
2Q23
3Q23
9M22
9M23
6
Q3 profitability benefited from Lira depreciation despite higher energy costs
Net Sales (mTRY)
+65.9%
+29.4%
4,291
3,316
2,586
EBITDA (mTRY)
+216.4%
+27.5%
1,246
977
EBITDA Margin
13.81 bps
-0.44 bps
29.5%
29.0%
Net Income (mTRY)
+58.7% +48.1%
1,310
825 885
15.2%
257
1,098
3Q22
2Q23
3Q23
394
3Q22
2Q23
3Q23
3Q22
2Q23
3Q23
795
568
90 212
3Q22 2Q23 3Q23
Deferred Tax Income
7
Favorable product mix & lower weight of energy cost drove robust financial results
Net Sales (mTRY)
+81.4%
10,649
5,870
9M22
9M23
EBITDA (mTRY)
+208.0%
2,869
932
9M22
9M23
EBITDA Margin
11.07 bps
26.9%
15.9%
9M22
9M23
Net Income (mTRY)
+147.3%
2,867
2,485
1,159
563
596 382
9M22 9M23
Deferred Tax Income
8
Strong FCF & WCAP management led to net cash position
3.000
Cash Conversion Rate: 54.3%
6.000
2.869
2.700
5.500
5.000
2.400
-294
4.500
2.100
4.000
1.800
-673
167
3.500
1.558
3.000
-344
1.500
-167
2.500
1.200
2.000
1.500
900
1.000
600
500
300
0
-500
0
EBITDA
Tax
Working
Asset
CAPEX
Other
Free
-1.000
Payment
Capital
Sales
Cash
Flow
Net Debt/EBITDA (LTM)
2,4
2,2
Net Debt (mTL)
2,0
2,0
1,8
1,6
1,4
1,4
1,2
1,0
0,7
0,8
1.024
0,6
977
666
0,3
0,4
194 0.1
492
0,2
0,0
0,0
-103
-0,3
-0,2
-1.000
-0,4
2022 Q1
2022 Q2
2022 Q3
2022 Q4
2023 Q1
2023 Q2
2023 Q3
9
Continuous ESG focus resulted in higher ranking in Refinitiv, #2 globally
-8%
770 753 753 724 705
649
35
+9
22 23
18 19
14
2023 Score
88
2nd of 119 in global ranking
2022 Score
B B A-
2019
2020
2021
2022
2023 9M
2030
2019
2020
2021
2022
2023 9M
2030
CO2 kg/t cementitious
AF Rate (%)
10
Climate Water Supplier Change Security Engage.
Source: Refinitiv, CDP
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Akçansa Çimento Sanayi ve Ticaret AS published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 19:23:39 UTC.
Akcansa Cimento Sanayi ve Ticaret A.S. (Akcansa) is a Turkey-based manufacturer of cement, clinker, ready-mixed concrete (RMC) and aggregates. It is also engaged in port operations in Canakkale and Ambarli. Akcansa provides its products and services to various countries, including the United States, Canada, France, Italy and Spain. The Company operates three cement production plants in Istanbul and Canakkale, as well as terminals located in Ambarli, Aliaga and Yalova. It also operates more than 35 ready-mixed concrete facilities across Marmara and Aegean regions, under the Betonsa brand. Akcansa has been carrying out its aggregate production under the brand name of Agregasa at its three facilities, following the merger with Agrega San ve Tic AS the Company also has a subsidiary, Karcimsa Cimento San ve Tic AS, which is engaged in cement grinding. Akcansa is a joint venture between Sabanci Holding and Heidelberg Cement.