Economy & Market
Suez Cement reports 11.5 per cent EBITDA growth
For the fourth quarter of 2014, Suez Cement reported a 2.5 per cent year-on-year increase in revenues and 11.5 per cent year-on-year growth in earnings before interest, tax and depreciation (EBITDA). Its net profit after non-controlling interests increased by 15.2 per cent during the quarter.
For the entirety of 2014, Suez Cement´s sales increased by 22 per cent, while recurring EBITDA improved by 8.8 per cent compared to 2013. However, higher corporate income taxes coupled with an absence of foreign exchange gains were responsible for an 8.4 per cent drop in net profit after non-controlling interests. EBITDA gains were also driven by Suez Cement´s downstream activities in transportation and ready-mix cements, as well as its paper bags subsidiary, which saw an EBITA increase of 26.5 per cent. Cement activities accounted for a gain of 6.3 per cent.The strong revenue performance was largely due to cement price increases due to an unprecedented surge in production costs and product shortages.