The surge in cement sales, mostly in the local market helped lift the first nine month results of Vassiliko Cement Works, which reported a satisfactory 16% increase in net profits with the Board issuing a positive profit warning, promising to beat last years CYP 5.03 mln in net profits.
Total sales were up 17.4% year-on-year at CYP 33.1 mln, on the back of a buoyant local construction sector as well as increased export sales. The total turnover generated from ready-mix concrete reached CYP 1.81 mln, accounting for 5.6% of total sales. Total cement and clinker sales increased to 1.017.000 tons from 906.000 tons in the same period a year ago, up by 12.25%. Local sales remained strong at 857.000 tons compared to 807.000 tons. Total consumption of cement in the local market advanced by 3.8% in the first nine months of 2005 to 1.174.000 tons, giving Vassiliko a 73% market share. Export sales rebounded to 160.000 tons from 99.000 tons a year ago.
Gross profit advanced to CYP 9.0 mln from CYP 8.03 mln, but the profit margin fell to 27.2% from 28.45% a year ago on the back of higher energy costs.
Vassiliko generated other income in the form of rent from third parties for use of its land and port facilities amounting to CYP 670.000 from CYP 307.000 a year ago.
Total expenses increased by 34.2% to CYP 3.96 mln from CYP 2.95 mln as sales & distribution and other expenses surged higher. Net finance costs were reduced to CYP 212.000 from CYP 295.000 in 9M04, despite the FX-related loss incurred during 9M05 of CYP 43.000. In a positive development, the company’s net debt was reduced by CYP 1.25 mln, thus
leading to a lower amount of interest payments.
Net after tax profit surged by 16.1% y/y to CYP 4.802.000 in the first nine months of 2005 compared to CYP 4.136.000 a year ago in the same period. Earnings per share amounted to 8.9 cent against 7.7 cent.
The Board of Vassiliko issued a statement stating that they expect net results for the whole of 2005 to be much better than the CYP 5.04 mln net profits reported in 2004.
In the third quarter, VCW reported total sales of CYP 10.9 mln compared to CYP 9.4 mln in Q304, while net profits in Q305 amounted to CYP 1.42 mln, down from CYP 1.7 mln in Q304.
