Cementir Holding NV reports stable sales amid H1 2025 challenges

Building materials company Cementir Holding NV reported stable cement sales volumes alongside marginal growth in ready-mixed concrete and aggregates. However, the company faced challenges such as negative currency impacts and production issues, according to a July 29 statement.

"The results for the first half of 2025 are in line with our expectations, with overall cement sales volumes stable, revenues slightly increasing, and EBITDA down compared to H1 2024. This decline is primarily due to technical production issues at two production plants and a larger-than-expected negative currency effect," Francesco Caltagirone Jr, Chairman and CEO, said. "In an international context marked by significant geopolitical and trade uncertainty, we continue to pursue our industrial and sustainability goals."

During H1, Cementir's cement and clinker sales volumes reached 5.1 million mt, remaining nearly stable compared to the same period in 2024. This stability was attributed to increases in Turkey, Nordic & Baltic regions, and Malaysia, which offset declines in other geographical areas.

Ready-mixed concrete sales volumes increased by 1.5% to 2.2 million cu m, driven by positive developments in Turkey and Norway, while Belgium saw a smaller contribution and declines were noted in Denmark and Sweden. Aggregate sales volumes rose by 4.8% to 5.2 million mt, with growth in Turkey and Denmark, stability in Belgium, and a decline in Sweden.

In Denmark, grey cement volumes on the domestic market saw a slight decrease, while white cement volumes dropped significantly by 21%.

The ongoing macroeconomic challenges continued to negatively impact the construction sector, particularly the residential market. However, cement exports rose by 7% compared to H1 2024, aided by increased deliveries to Norway, Iceland, Belgium, and the Faroe Islands, despite a contraction in sales to the UK, Poland, France, and Greenland.

Norway reported a 10% increase in ready-mixed concrete sales volumes, supported by favorable weather conditions and the initiation of major projects, indicating signs of market recovery, although with challenges such as overcapacity and price competition. Conversely, Sweden experienced a moderate decline in ready-mixed concrete volumes amid a weak economy.

In Belgium, cement sales volumes on the domestic market fell by 8%, reflecting persistent demand weakness. Exports also decreased by 7%, although this was an improvement from Q1, which was impacted by unfavorable trends in northern France and a temporary railway closure that disrupted deliveries.

The United States saw a decline of approximately 3% in white cement sales volumes compared to H1 2024, with ongoing challenges in the residential market due to high mortgage interest rates and uncertainties surrounding tariff policies.

In Turkey, domestic cement sales volumes rose by 5%, particularly in Q2, despite the economic backdrop of high inflation and political instability. The Marmara region showed strong growth, while the Aegean region faced a decline due to project completions and delays in new infrastructure investments.

In Egypt, white cement sales volumes decreased by 2%, driven by a weak Q2, while the local construction market showed signs of recovery in June. Challenges included high inflation and rising energy costs, which continued to pressure the economy.

Sales revenues in China fell by 11.5% to Eur23.5 million, attributed to reduced sales prices and stagnant demand, despite government stimulus measures. In Malaysia, revenues increased by 1.1% to Eur24 million, driven by higher export volumes, although domestic sales faced a decline due to project slowdowns.

Platts, part of S&P Global Energy, assessed CEMDEX Turkey at $55/mt FOB July 24.