Vassiliko Q1 profits surge 81.5%

Vassiliko Cement Works (VCW) announced a massive increase in first quarter profits on the back of higher cement demand and production, a milder winter climate and better cost controls.

Total turnover during the first three months ending March 2005 jumped 22% year-on-year to CYP 10.32 mln from CYP 8.46 mln, as local cement sales surged by 18.5% to 282.000 metric tonnes from 238.000 tonnes a year ago, and far outstripping total cement production of 398.000, which was up only 14.7%.

Exports meanwhile reached 30.000 tonnes compared to 49.000 tonnes a year ago in the same period.

Gross profits were up at CYP 2.99 mln from CYP 2.53 mln while other income also surged to CYP 240.000 from CYP 32.000 previously.

Total costs fell 12% y/y to CYP 1.08 mln from CYP 1.22 mln, as the company managed to squeeze its sales & distribution costs while freight costs also fell.

Operating profits were up 60% to CYP 2.14 mln from CYP 1.34 mln a year ago, with pretax profits at CYP 2.04 mln from CYP 1.2 mln a year earlier.

Net profits after minority interest attributable to shareholders jumped 81.5% y/y to CYP 1.817.000 for the first quarter of 2005 from CYP 1.001.000 a year earlier and compared to CYP 5.04 mln for the whole of 2004.

Earnings per share jumped to 3.4 cent from 1.9 cent before.

Book value per share improved to CYP 1.22 per share from CYP 1.19 per share, with price to book at 1.02 times. Based on the historical 2004 profits, the price to earnings ratio of VCW is 13.5 times on the last price of CYP 1.25 on the CSE.