SEMAPA PART 1
MANAGEMENT REPORT
INTERIM REPORT | Q1 2021
1
1 HIGHLIGHTS
OVERALL PERFORMANCE
- The first quarter 2021 has been influenced by new waves of infection and the subsequent lockdown measures particularly with impact essentially in the Pulp and Paper segment.
- The Semapa Group recorded a consolidated revenue in the first quarter of 2021 of 463.7 million euros (‐11.5% year‐on‐year), 340.8 million euros generated in Pulp and Paper / Navigator (‐16%), 113.4 million euros in Cement / Secil (+3.1%), and 9.7 million euros in Environment / ETSA (+15.2%). Exports and foreign sales for the same period amounted to 336.4 million euros, accounting for 72.5% of revenue.
- The reduction in Navigator's revenue reflects the decreased pulp and paper volumes, resulting mostly from the scheduled annual maintenance shutdowns of both pulp mill and paper machines in Figueira da Foz, with an impact of 11 days, and the drop in paper prices. Although pulp price increased over the period (with the benchmark index up 15% in USD and 5.5% in Euros), paper index price was still 6.4% lower than in the first quarter of 2020.
- EBITDA in the first quarter of 2021 totalled 107.5 million euros (vs. 119.1 million euros in the first quarter of 2020 and 93.3 million euros in the fourth quarter), of which 70.6 million euros were derived from Pulp and Paper, 33.4 million euros from Cement and 3.4 million euros from Environment. The consolidated EBITDA margin stood at 23.2%, up 0.4 p.p. compared to the same period in 2020.
- The reduction in EBITDA in the Pulp and Paper segment (‐17.8 million euros), in comparison to the same period last year, was not offset by the positive development in the Cement segment (+4.9 million euros), especially in Portugal and Brazil, and the Environment segment (+0.8 million euros). EBITDA in the first quarter of 2021 was 14.2 million euros higher than in the fourth quarter of 2020, which was negatively impacted by the depreciation of the Lebanese pound.
- Net profit attributable to Semapa shareholders at the end of the first quarter of 2021 stood at 25.4 million euros (vs. 17.2 million euros in 2020). The decrease in EBITDA (‐11.7 million euros) was more than offset by the fall in negative exchange rate effects at Secil (Brazilian real) reflected in the financial results (8.1 million euros), the reduction in depreciation, amortisation and impairment losses (9.9 million euros), and the tax effect (‐1.5 million euros). A comparison between the first quarter of 2021 and the fourth quarter of 2020 shows that it was 24.8% less (‐8.4 million euros).
- The value of the investments made in the first quarter of 2021 amounted to approximately 25 million euros vs. 27 million euros year on year, with the Pulp and Paper segment standing out with 20 million euros.
- In the context of the COVID‐19 crisis, the Group was still very focused on optimising cash flow, with particular emphasis on actively reducing costs and on optimising the working capital, which generated Free Cash Flow of 66.9 million euros (vs. 32.9 million euros over the same period in the previous year). Free cash flow generation in the first quarter of 2021 was 14.4 million euros less, compared to the fourth quarter of 2020, due to reduced cash flow.
- Consequently, during the first quarter of 2021, net debt decreased in all business segments, and consolidated interest‐bearing net debt totalled 1,146.8 million euros, 68.8 million euros less compared to the end of 2020.
INTERIM REPORT | Q1 2021
2
KEY BUSINESS INDICATORS
IFRS ‐ accrued amounts | Q1 2021 | Q1 2020 | Var. | Q4 2020 | Var. | ||||||||||
(million euros) | |||||||||||||||
Revenue | 463.7 | 524.0 | ‐11.5% | 420.4 | 10.3% | ||||||||||
EBITDA | 107.5 | 119.1 | ‐9.8% | 93.3 | 15.2% | ||||||||||
EBITDA margin (%) | 23.2% | 22.7% | 0.4 p.p. | 22.2% | 1.0 p.p. | ||||||||||
Depreciation, amortisation and impairment losses | (47.2) | (57.1) | 17.3% | (48.6) | 2.8% | ||||||||||
Provisions | (0.2) | (2.3) | 89.7% | (4.5) | 94.6% | ||||||||||
EBIT | 60.0 | 59.7 | 0.5% | 40.2 | 49.1% | ||||||||||
EBIT margin (%) | 12.9% | 11.4% | 1.5 p.p. | 9.6% | 3.4 p.p. | ||||||||||
Net financial results | (17.9) | (26.0) | 31.3% | (1.8) | ‐891.5% | ||||||||||
Net monetary position | ‐ | ‐ | ‐ | 13.9 | ‐ | ||||||||||
Profit before taxes | 42.1 | 33.7 | 25.0% | 52.4 | ‐19.6% | ||||||||||
Income taxes | (11.0) | (9.5) | ‐16.0% | (1.0) | <‐1000% | ||||||||||
Net profit for the period | 31.1 | 24.2 | 28.6% | 51.4 | ‐39.5% | ||||||||||
Attributable to Semapa shareholders | 25.4 | 17.2 | 47.6% | 33.8 | ‐24.8% | ||||||||||
Attributable to non‐controlling interests (NCI) | 5.6 | 6.9 | ‐18.7% | 17.6 | ‐67.9% | ||||||||||
Cash flow | 78.5 | 83.6 | ‐6.1% | 104.4 | ‐24.8% | ||||||||||
Free Cash Flow | 66.9 | 32.9 | 103.4% | 81.4 | ‐17.8% | ||||||||||
31/03/2021 | 31/12/2020 | ||||||||||||||
Equity (before NCI) | 961.4 | 948.8 | |||||||||||||
Interest‐bearing net debt | 1,146.8 | 1,215.5 | |||||||||||||
Lease liabilities (IFRS 16) | 85.2 | 80.3 | |||||||||||||
Total | 1,231.9 | 1,295.9 |
SUMMARY TABLE OF OPERATING INDICATORS
Unit | Q1 2021 | Q1 2020 | Var. | ||||||
Pulp and Paper | |||||||||
BEKP Sales (pulp) | 1 000 t | 79 | 83 | ‐5.5% | |||||
UWF Sales (paper) | 1 000 t | 335 | 366 | ‐8.4% | |||||
Total sales of tissue | 1 000 t | 27 | 26 | 3.6% | |||||
Cement | |||||||||
Sales of Grey cement | 1 000 t | 1,222 | 1,139 | 7.3% | |||||
Sales of Ready‐mix | 1 000 m3 | 448 | 435 | 3.1% | |||||
Environment | |||||||||
Collection of raw materials ‐ Animal waste (categories 1, 2 and 3) | 1 000 t | 30.4 | 30.8 | ‐1.4% | |||||
INTERIM REPORT | Q1 2021
3
2 PERFORMANCE OF THE SEMAPA GROUP BUSINESS AREAS
2.1. BREAKDOWN BY BUSINESS SEGMENTS
IFRS ‐ accrued amounts (million | Pulp and Paper | Cement | Environment | Holdings | Consoli | ||||||||||||
euros) | dated | ||||||||||||||||
Q1 2021 | 21/20 | Q1 2021 | 21/20 | Q1 2021 | 21/20 | Q1 2021 | 21/20 | Q1 2021 | |||||||||
Revenue ‐ External | 340.7 | ‐16.0% | 113.3 | 3.1% | 9.7 | 15.2% | ‐ | ‐ | 463.7 | ||||||||
Revenue | 340.8 | ‐16.0% | 113.4 | 3.1% | 9.7 | 15.2% | (0.2) | ‐109.0% | 463.7 | ||||||||
EBITDA | 70.6 | ‐20.2% | 33.4 | 17.1% | 3.4 | 29.3% | 0.1 | 121.9% | 107.5 | ||||||||
EBITDA margin (%) | 20.7% | ‐1.1 p.p. | 29.4% | 3.5 p.p. | 35.6% | 3.9 p.p. | 0.0 p.p. | 23.2% | |||||||||
Depreciation, amortisation and | |||||||||||||||||
impairment losses | (34.1) | 18.8% | (12.2) | 14.1% | (0.8) | ‐5.2% | (0.1) | 36.0% | (47.2) | ||||||||
Provisions | (0.2) | 91.2% | (0.1) | 83.3% | ‐ | ‐ | ‐ | ‐ | (0.2) | ||||||||
EBIT | 36.2 | ‐18.5% | 21.1 | 52.2% | 2.6 | 39.0% | 0.0 | 106.0% | 60.0 | ||||||||
EBIT margin (%) | 10.6% | ‐0.3 p.p. | 18.6% | 6.0 p.p. | 27.2% | 4.7 p.p. | 0.0 p.p. | 12.9% | |||||||||
Net financial results | (9.7) | ‐57.8% | (6.9) | 60.6% | (0.0) | 20.8% | (1.2) | 47.7% | (17.9) | ||||||||
Profit before taxes | 26.5 | ‐30.8% | 14.2 | 497.5% | 2.6 | 41.0% | (1.2) | 58.2% | 42.1 | ||||||||
Income taxes | (5.8) | 44.8% | (5.5) | <‐1000% | (0.6) | ‐41.6% | 0.8 | ‐53.5% | (11.0) | ||||||||
Net profit for the period | 20.7 | ‐25.5% | 8.7 | 324.4% | 2.0 | 40.9% | (0.4) | 64.7% | 31.1 | ||||||||
Attributable to Semapa | |||||||||||||||||
shareholders | 14.5 | ‐25.5% | 9.3 | 476.0% | 2.0 | 40.9% | (0.4) | 64.7% | 25.4 | ||||||||
Attributable to non‐ | |||||||||||||||||
controlling interests (NCI) | 6.2 | ‐25.6% | (0.6) | 59.1% | 0.0 | 40.3% | ‐ | ‐ | 5.6 | ||||||||
Cash flow | 55.1 | ‐23.3% | 21.0 | 95.7% | 2.8 | 28.4% | (0.4) | 67.2% | 78.5 | ||||||||
Free Cash Flow | 56.4 | 278.6% | 7.2 | ‐57.7% | 1.2 | ‐18.4% | 2.1 | 504.0% | 66.9 | ||||||||
Interest‐bearing net debt | 623.6 | 263.6 | (1.7) | 261.3 | 1,146.8 | ||||||||||||
Lease liabilities (IFRS 16) | 53.3 | 29.8 | 1.8 | 0.2 | 85.2 | ||||||||||||
Total | 676.9 | 293.4 | 0.1 | 261.5 | 1,231.9 |
Notes:
For the purpose of calculating the change in net debt the values of 31.12.2020 are used.
Figures for business segment indicators may differ from those presented individually by each Group, as a result of consolidation adjustments.
The Navigator Company ("Navigator") released its results on 28 May 2021, so only the highlights of that report will be presented herein. Secil and ETSA, which are not listed, did not release their results. Their operations, therefore, are described in more detail.
INTERIM REPORT | Q1 2021
4
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Semapa - Sociedade de Investimento e Gestão SGPS SA published this content on 31 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2021 21:35:03 UTC.
