Titan Group on Thursday announced a 12-percent increase in turnover for Q1 2019, compared to the same period in 2018, although the development had only a marginal impact on EBITDA, which reached only 2 percent, or 44 million euros.
Titan blamed challenges in its operations in Turkey and Egypt for the limited EBITDA performance.
A press release, by the company, noted:
"Consolidated turnover for TITAN Group in the first quarter of 2019 stood at €363m, recording a 12% increase compared to the same period the previous year, largely due to the robust US market and growth in Southeastern Europe. The improvement in Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was limited to 2%, reaching €44m, as challenging conditions in both Egypt and Turkey impacted operational profitability. The Group’s net result after minority interests and the provision for taxes was a €6m loss, reflecting higher depreciation charges and unfavorable foreign exchange movements, versus a €1m profit in the first quarter of 2018.
As a general observation, the first quarter of the year is susceptible to varying weather patterns and as such, comparatives against the corresponding quarter of a preceding year are not necessarily indicative of performance going forward in the course of the year.
Activity in the USA saw a strong start to the year, supporting growth expectations regarding the evolution of the country’s construction sector. Demand for building materials was higher, compared to the previous year, across all TITAN America markets, leading to an improvement in results. In addition to the positive performance of the market, results were aided by easier comparatives due to better weather in the quarter, the timing of maintenance work, as well as the strengthening of the US Dollar against the Euro.
Turnover in the USA recorded a 17.5% increase in the first quarter of 2019 and stood at €223.9m. EBITDA increased by 41.8% compared to the same period in 2018 and stood at €41.2m.
In Greece, the market recorded an increase in the beginning of the year, albeit from very low levels. Demand growth nevertheless lacks traction, since major new projects are faced with further delays. Regularly scheduled maintenance of plants and facilities in the course of the first quarter also weighed on results.
Total turnover for region Greece and Western Europe in the first quarter of 2019 increased by 6% reaching €56.1m. On the operating level, the Group recorded a €0.8m loss impacted by higher maintenance charges, versus a €2.1m profit in the first quarter of 2018.
In Southeastern Europe, construction activity continued to grow. Demand in the quarter was further helped by milder weather compared to conditions prevalent last year.
Turnover for the region as a whole posted a 41.4% increase and stood at €48.4m. EBITDA more than doubled, reaching €9.1m. The growth trajectory is anticipated to continue over the next quarters, albeit at milder rates."
