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Semapa : First half of 2021 results

07/30/2021 | 03:39pm

1 HIGHLIGHTS

OVERALL PERFORMANCE

  • After the new waves of Covid-19 infections in the 1st quarter, which forced governments in the Group's key markets to take lockdown measures, in the last three months the economies have gradually opened up with an impact mainly on the Pulp and Paper segment. The second quarter of 2021 performed better than the first quarter of the year and naturally better than Q2 2020, when the Group's business was severely hit by the pandemic.
  • The consolidated revenue of Semapa Group in the first half of 2021 was 971.4 million euros (+3.1% year-on-year),
    1. million euros generated in Pulp and Paper / Navigator (+2.7%), 237.9 million euros in Cement / Secil (+3.2%), and 18.9 million euros in Environment / ETSA (+20.4%). Exports and foreign sales for the same period amounted to
    1. million euros, accounting for 73.1% of revenue.
  • Navigator's revenue reflects the increase in paper volumes which offset the lower year-on-year price level, as the average of the benchmark index for A4 in Europe on the first half of 2021 still compares unfavourably with its average for the same period last year - 814 €/t vs. 855 €/t. On the other hand, despite the rapid and significant recovery in the pulp market's reference prices, pulp sales stood at 152 thousand tonnes, 21% below the first half of 2020, when Navigator benefited from larger quantities of pulp available for sale after some of its paper machines shutdown due to the pandemic. The growth in the Cement segment results essentially from the positive evolution in the Portuguese, Brazilian and Tunisian markets, which overcame the negative effects of the strong exchange rate depreciation against the Euro, particularly of the Brazilian real and the Lebanese pound.
  • EBITDA in H1 2021 totalled 224.8 million euros (vs. 203.3 million euros in the first half of 2020). In the same period,
    1. million euros were generated in Pulp and Paper (+7.4%), 67.1 million euros in Cement (+14.9%) and 7.2 million euros in Environment (+40.6%). EBITDA in the 2nd quarter of 2021 was 9.9 million euros above that of Q1 and 33.1 million euros more than in Q2 2020, which was negatively impacted by the lockdown measures taken. In the 1st half of 2021 consolidated EBITDA margin was 23.1%.
  • Net profit attributable to Semapa shareholders at the end of the first half of 2021 stood at 73.1 million euros (vs.
    1. million euros in the same period in 2020). This growth resulted from a favourable evolution of EBITDA (+21.5 million euros) combined with better financial results (+19.4 million euros) stemming from the lower negative exchange rate effects in Secil (Brazilian real), a reduction in depreciation, amortization and impairment losses (+18.4 million euros) and negatively influenced by the tax function (-9.8 million euros).
  • The value of investments made in the first half of 2021 amounted to approximately 53 million euros, vs. 65 million euros over the same period of the previous year, with particular emphasis on the Pulp and Paper segment amounting to 33 million euros.
  • During the first half of 2021, net debt decreased in all business segments, and interest bearing consolidated net debt totalled 1,142.9 million euros, 72.6 million euro less compared to the end of 2020. On 30 June 2021, total consolidated cash amounted to 251 million euros, in addition to 648.8 million euros in committed and undrawn credit lines, thus ensuring strong liquidity in the current context of uncertainty.

RESULTS PRESENTATION | H1 2021

1

LEADING BUSINESS INDICATORS

IFRS - accrued amounts

H1 2021

H1 2020

Var.

Q2 2021

Q2 2020

Var.

(million euros)

Revenue

971,4

941.8

3.1%

507.7

417.8

21.5%

EBITDA

224,8

203.3

10.6%

117.3

84.2

39.4%

EBITDA margin (%)

23,1%

21.6%

1.6 p.p.

23.1%

20.1%

3.0 p.p.

Depreciation, amortisation and impairment

(93,3)

(111.8)

16.5%

(46.1)

(54.7)

15.6%

losses

Provisions

(2,3)

(4.0)

44.0%

(2.0)

(1.7)

-18.5%

EBIT

129,2

87.5

47.6%

69.2

27.8

148.7%

EBIT margin (%)

13,3%

9.3%

4.0 p.p.

13.6%

6.7%

7.0 p.p.

Net financial results

(24,0)

(43.4)

44.7%

(6.1)

(17.4)

64.9%

Net monetary position

(0,2)

-

-

(0.2)

-

-

Profit before taxes

105,0

44.2

137.7%

62.9

10.5

500.7%

Income taxes

(14,7)

(4.9)

-200.9%

(3.7)

4.6

-179.1%

Net profit for the period

90,3

39.3

129.9%

59.2

15.1

292.0%

Attributable to Semapa shareholders

73,1

30.3

141.4%

47.7

13.1

264.9%

Attributable to non-controlling interests (NCI)

17,1

9.0

91.0%

11.5

2.0

466.2%

Cash flow

185,9

155.0

19.9%

107.3

71.5

50.2%

Free Cash Flow

154,9

146.2

6.0%

88.0

113.3

-22.3%

Jun21 vs.

Var.

30/06/2021

31/12/2020

Dec20

Equity (before NCI)

978,8

948.8

3.2%

Interest-bearing net debt

1,142,9

1,215.5

-6.0%

Lease liabilities (IFRS 16)

85,2

80.3

6.1%

Total

1,228,1

1,295.9

-5.2%

SUMMARY TABLE OF OPERATING INDICATORS

Unit

H1 2021

H1 2020

Var.

Q2 2021

Q2 2020

Var.

Pulp and Paper

BEKP Sales (pulp)

1 000 t

152

193

-21.1%

73

110

-33.0%

UWF Sales (paper)

1 000 t

700

598

17.2%

365

231

57.7%

Total sales of tissue

1 000 t

51.8

51.9

-0.2%

24.9

26.0

-4.0%

Cement

Sales of Grey cement

1 000 t

2,621

2,421

8.3%

1,399

1,283

9.1%

Sales of Ready-mix

1 000 m3

939

877

7.1%

491

442

11.1%

Environment

Collection of raw materials - Animal waste

1 000 t

60.0

59.3

1.1%

29.6

28.5

3.9%

(categories 1, 2 and 3)

RESULTS PRESENTATION | H1 2021

2

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

H1 2021

21/20

H1 2021

21/20

H1 2021

21/20

H1 2021

21/20

H1 2021

Revenue - External

714.6

2.7%

237.9

3.2%

18.9

20.4%

-

-

971.4

Revenue

714.7

2.8%

238.1

3.1%

18.9

20.4%

(0.3)

-6.7%

971.4

EBITDA

150.5

7.4%

67.1

14.9%

7.2

40.6%

(0.1)

83.6%

224.8

EBITDA margin (%)

21.1%

0.9 p.p.

28.2%

2.9 p.p.

38.3%

5.5 p.p.

0.0 p.p.

23.1%

Depreciation, amortisation and

(67.2)

18.2%

(24.4)

12.2%

(1.6)

-3.4%

(0.1)

33.1%

(93.3)

impairment losses

Provisions

(0.3)

86.4%

(2.0)

5.8%

-

-

-

-

(2.3)

EBIT

83.0

48.2%

40.7

42.9%

5.6

56.7%

(0.2)

66.9%

129.2

EBIT margin (%)

11.6%

3.6 p.p.

17.1%

4.8 p.p.

29.7%

6.9 p.p.

0.0 p.p.

13.3%

Net financial results

(10.1)

-22.4%

(11.2)

62.3%

(0.1)

24.5%

(2.5)

51.2%

(24.0)

Net monetary position

-

(0.2)

-

-

(0.2)

Profit before taxes

72.9

52.7%

29.3

>1000%

5.5

59.8%

(2.7)

52.7%

105.0

Income taxes

(14.0)

-51.6%

(2.0)

-336.0%

(1.1)

-41.2%

2.4

-43.5%

(14.7)

Net profit for the period

58.9

52.9%

27.3

>1000%

4.4

65.3%

(0.3)

80.3%

90.3

Attributable to Semapa

41.2

52.9%

27.8

>1000%

4.4

65.3%

(0.3)

80.3%

73.1

shareholders

Attributable to non-

17.7

53.0%

(0.5)

79.0%

0.0

65.7%

-

-

17.1

controlling interests (NCI)

Cash flow

126.3

3.1%

53.7

82.0%

6.0

42.4%

(0.2)

87.4%

185.9

Free Cash Flow

121.5

6.6%

34.8

5.2%

2.7

-37.8%

(4.1)

21.8%

154.9

Interest-bearing net debt

658.1

249.4

(2.2)

237.7

1,142.9

Lease liabilities (IFRS 16)

52.9

30.4

1.7

0.3

85.2

Total

711.0

279.7

(0.5)

237.9

1,228.1

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 27 July 2021, so only the highlights of that report will be presented herein. Secil and ETSA, which are not listed, did not publish their results. Therefore, their operations are described in more detail.

RESULTS PRESENTATION | H1 2021

3

2.2. PAPER AND PULP BUSINESS AREA

totalconsolidated of% Revenue H1 2021

74%

% of consolidated total

EBITDA H1

2021

67%

HIGHLIGHTS IN 2021 (VS. 2020)

  • Revenue amounted to 714.7 million euros in the first half of 2021, 2.8% higher year on year. The increase in paper volumes offset the lower price levels.

REVENUE

695.5

714.7

Million Euros

H1 2020

2.8%

H1 2021

REVENUE BREAKDOWN BY SEGMENT

Million Euros

Δ% 21/20

H1

2020

RESULTS PRESENTATION | H1 2021

69.3

64.0

4.0

714.7

77.4

508.1

+8.6%-2.7%+0.3%-12.3%-167%+2.8%

UWF Paper

BEKP Pulp

Tissue

Energy

Others and

H1 2021

eliminations

468.0

79.5

69.1

73.0

6.0

695.5

4

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Disclaimer

Semapa - Sociedade de Investimento e Gestão SGPS SA published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 19:38:06 UTC.

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