(News Bulletin 247) – Over the past half-year, the French low-carbon cement specialist sold less cement than expected, penalized by delays in construction sites. Hoffmann Green Cement will market only 10,000 tons of cement this year, against a target of 20,000 to 30,000 tons so far.
The French low-carbon cement specialist saw a slowdown in its commercial momentum in the first half. High inflation but also the shortage of building materials led to delays in construction sites. Thus, the company sold 2,087 tons of cement over one year, an increase of 11% in volumes. However, this increase is well below the expectations of the low-carbon cement specialist.
“Construction players are experiencing unprecedented price increases for raw materials which lead them to postpone certain projects”, explains Hoffmann, who estimates between 6 and 12 months, the average duration of the delay for these sites. In the first half of 2022, the company’s revenues thus amounted to 0.5 million euros and correspond mainly to the sale of cement for an amount of 0.4 million euros and to the invoicing of engineering services. up to 0.1 million euros.
A target of 10,000 tons of cement in 2022
A little lower in the accounts, Hoffmann recorded an Ebitda (earnings before interest, taxes, depreciation and amortization) at the end of June 2022 of -3.5 million euros against -2.6 million euros at June 30, 2021 The company explains this deterioration of this indicator mainly by the increase in purchases of raw materials within the framework of R&D tests and developments in the amount of 0.7 million euros as well as by the resumption of trade fairs and exhibitions for an amount of 0.2 million euros.
At the end of June, operating income fell sharply by 1.1 million euros to show a loss of 4.7 million euros. The group shows a net loss of 4.6 million euros after taking into account tax income of 1.6 million euros.
Over the half-year, the group recalls having signed new “structuring partnerships” with major players in the sector such as Bouygues Immobilier, Duret Immobilier, P2i, Les Maçons Parisiens and Cemblend. These agreements enabled it to increase its cement orders by 10,000 tons.
Last May, the Vendée company also announced the establishment of a third production site at the Grand Port Maritime in Dunkirk. A copy of its H2 Vendée site (under construction and scheduled for completion at the end of 2022), this new unit called H3 will have a production capacity of 250,000 tonnes per year. “The start of the construction of the H3 plant should begin in the first half of 2023 for delivery scheduled for the end of 2024”, specified the group. With the site already operational (H1) in Bournezeau in Vendée and the delivery of the H2 site next to it (planned for the end of 2022) then the construction of the H3 site in Dunkirk, the group must be able to produce 550,000 tonnes in France in total per year. by 2026.
On the outlook front, Hoffman says he plans to market only 10,000 tons of cement this year, against a target of 20,000 to 30,000 tons so far. The group is forced to give up on its sales targets due to a lack of visibility in the construction sector due to construction delays.
An expected turnover of 120 million euros in 2026
However, on this occasion, the company maintained its objective of achieving 3% market share for the cement market in France, for a turnover of 120 million by 2026 – against 2.38 million euros for the whole of the 2020 financial year.
Internationally, the company wishes to develop through licensing agreements concluded with partners. Hoffmann Green Cement aims to have 4 operational units (outside France) by 2026 for a turnover generation of around 10 million euros. The Company expects to be able to achieve an Ebitda margin of approximately 40% within 4 years.