Vassiliko profits surge by 19% in 9M

Vassiliko Cement Works Pcl (VCW) posted a strong set of  results in the first nine months of 2006 with net profit jumping 18.7% YoY to CYP 5.7 mln or EUR 9.88 mln from CYP 4.8 mln or EUR 8.3 mln a year ago in the same period.

A sharp jump in sales, mainly exports coupled with higher prices and costs remaining under control allowed Cyprus’ largest cement producer and exporter to boost profits.

Total Company sales jumped 8.7% YoY to CYP 36.03 mln or EUR 62.4 mln primarily driven by increased export quantities (CYP 4.4m: +52% YoY) and higher local pricing (CYP 30.7m: +6%YoY).

Local sales increased by 3.4% to 862.000 tonnes compared to a total growth of 1% in local cement sales to 1.18 mln tonnes. Exports surged 37.5% to 220.000 tonnes from 160k tonnes in the first nine month period.

Despite the increase in gross profit in absolute terms by 6.6% YoY, gross profit

margin fell by 110bps to 26.1% primarily due to changes in sales mix towards the lower yielding export sales as well as higher energy prices.

Operating expenses were contained both in absolute terms (CYP 3.8 mln in 9M06 vs CYP 3.9 mln in 9M05) and in terms of revenues ( 10.7% in 9M06 vs. 12.0% in 9M05).

For the first time, VCW recorded a net finance surplus of CYP 97k in 9M06 compared to a charge of CYP 212k a year ago in the same period, helping pre-tax profits to CYP 5.7 mln from CYP 4.8 mln while net profit attributable to shareholders jumped to CYP 5.7 mln or EUR 9.88 mln in 9M06 from CYP 4.8 mln or EUR 8.3 mln in 9M05. EPS were up at 10.6c or 18.4 euro cents from 8.9c and 15.5 euro cents a year ago.

Shareholders funds improved to EUR 133 mln, helping lift book value per share to EUR 2.48 according to Financial Mirror calculations.