Titan Cement FY24: Net Result Up 17.3%; Growth Across All Regions

During FY24, group sales clocked in at €2.644b (vs. KBCSe €2.659b), up 3.8% YoY. Sales growth was driven by increased volumes across all product lines while pricing remained stable. EBITDA came in at €592.1m (vs. KBCSe €602.1m), up 9.6% on a like-for-like basis, mainly driven by higher operational efficiencies, lower solid fuel costs and higher alt. fuel usage. Net result came in at €315.3m (€4.2ps), up 17.3% YoY. Leverage ratio stood at 1.02x and net debt further dropped to €622m thanks to robust cash generation. FY24 Capex was €251m, a record for the group, and will be channelled into growth projects, higher alt. fuel use and digitization. During Feb'25, Titan America was listed on the NYSE and brought in total proceeds of €393m and subsequently, the group divested its 75% share in Adocim in East Türkiye. Titan's board proposed an ad-hoc increase of dividend to €3ps, a ~253% increase vs. FY23 (€0.85ps). We continue to believe that there will be no tariffs on European cement imports because almost 25% of US cement consumption is already imported and placing a tariff on cement would only exacerbated housing prices across the US, a key issue Trump promised to solve. We reiterate our HOLD rating and €45 TP.