14/11/2007 11:10
Vasiliko Cement Works managed to increase its profitability for the first nine months of 2007. The profits attributable to shareholders recorded an increase of 21.3% to £6.9 million from £5.7 million, while the EPS stood at 12.9 cents from 10.6 cents last year. According to the company, the increased profitability follows the strong growth rate in the domestic cement market. The Company decided to allocate an interim dividend of 1.5 cents.
Its turnover showed an increase of 9.3% to £39.4 million against £36 million in the corresponding period of 2006.
The domestic cement sales and the clinkers surged 14.8% to 993 thousand tons compared to 865 thousand tons last year.
The profits from operations increased by 19.6% to £7.4 million against £6.2 million last year. The cost of sales surged 9.2%, while the selling and distribution expenses fell 13.9% and the administrative expenses dropped 4.2%.
Prospects
According to VCW, the market growth is expected to contribute to the Group’s profitability.
However, the increase in the price of oil in the international market, the rapid increase in the price of coal and the more expensive electricity will affect negatively its profitability.
Prices not to increase
According to the announcement, despite the negative international climate, the Company tries hard to keep the price of its products competitive. “Respecting its commitments to the Commission for the Protection of Competition for the approval of the merger with the Cyprus Cement Company, the Management will not be able to proceed with any increase in the price of cement in the domestic market until the end of March 2009”.
In view of the increasing energy cost, the Company is taking all necessary measures to moderate it, intensifying its efforts to replace the conventional fuel with other alternative types of fuel.
Its turnover showed an increase of 9.3% to £39.4 million against £36 million in the corresponding period of 2006.
The domestic cement sales and the clinkers surged 14.8% to 993 thousand tons compared to 865 thousand tons last year.
The profits from operations increased by 19.6% to £7.4 million against £6.2 million last year. The cost of sales surged 9.2%, while the selling and distribution expenses fell 13.9% and the administrative expenses dropped 4.2%.
Prospects
According to VCW, the market growth is expected to contribute to the Group’s profitability.
However, the increase in the price of oil in the international market, the rapid increase in the price of coal and the more expensive electricity will affect negatively its profitability.
Prices not to increase
According to the announcement, despite the negative international climate, the Company tries hard to keep the price of its products competitive. “Respecting its commitments to the Commission for the Protection of Competition for the approval of the merger with the Cyprus Cement Company, the Management will not be able to proceed with any increase in the price of cement in the domestic market until the end of March 2009”.
In view of the increasing energy cost, the Company is taking all necessary measures to moderate it, intensifying its efforts to replace the conventional fuel with other alternative types of fuel.
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