BUSINESS

Ceramic blocks manufacturer CEMACON ends 2016 with 5 ml lei in net profit

Ceramic blocks manufacturer CEMACON ended 2016 with a turnover of 20 ml lei, by 28 pct higher against the previous year, and a net profit of five million lei (rd 1.1 million euro), the company said in a release.

“We end a spectacular year, as 2016 was the best on the record for CEMACON. We hit major highs in all business aspects: we doubled our estimated growth target as the turnover went up 28 percent as a result of our capitalizing on domestic and market opportunities, we have a 19 pct EBITDA – 3 percentage points higher than the year before, and a net profit of over 5 million lei, unaffected by financial restructuring. In the context of a positive development of the market, estimated at 8 – 10 percent, CEMACON increased by 28 percent the volume of ceramic blocks sales. We thus improved our domestic position and strongly reinforced our status as Transylvania market leader,” said company CEO and Board chairman Liviu Stoleru (photo).

The operating income rose 16 percent, as both production facilities in Recea and Zalau operated at full capacity; the operation of the Zalau-based plant for the entire year compared to nine months in 2015 substantially contributed to business expansion, resulting also in a 12 pct increase of operating expenses.

CEMACON SA ranks second among Romania’s leading producers of ceramic blocks and is also on a top position on the Transylvanian market of building materials. The company operates Romania’s top modern and largest production capacity, rolling out innovative products that bring added value to the users, for highly competitive production costs.

CEMACON SA is listed on the Bucharest Stock Exchange and is mainly held by institutional shareholders, Romanian and foreign investment funds.

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