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Profits of cement plant rose by 14.1%

Holcim OJSC (Azerbaycan) has disclosed a financial report for 2021, according to which the consolidated profits of the country’s cement enterprise rose by 14.1%.

Last year, the company’s profits amounted to about 115 million manats ($67.6 million). At the same time, the cost of sales over the year rose by only 4.2%. As a result, the operating profit of the cement plant for 2021 amounted to 53.4 million manats which is up by 28.3% from 2020. No volume of cement production is reported.

Administrative expenses, as well as the costs of product delivery, have significantly risen which led to the fact that the company’s balance sheet profit dropped to 7.3 million manats. The amount of accrued income tax amounted to 4.2 million manats, 4.4 times more than in the previous year. The net profit of Holcim (Azerbaycan) according to the results of 2021 amounted to 3.1 million manats, 1 million manats more than in 2020.

Recall that at the general meeting of shareholders held in June this year, it was decided to direct all profits for 2021 to issue dividends to shareholders.

In 2021, the cement plant paid interest debts on loans in the amount of 12.3 million manats, repaid debts on the main amount of loans in the amount of 3.4 million manats. At the beginning of this year, JSC Holcim (Azerbaycan) has debts on loans (the borrower is Holcim International Finance LTD.) in the amount of 110.5 million manats. The loan repayment period expires on March 31, 2025.

Deloitte & Touche provided a positive audit opinion to the financial report of Holcim OJSC (Azerbaycan). The report was published without one of its parts – comments to the financial report.

Recall that JSC Holcim (Azerbaycan) is a company with Swiss-German capital: 66% of its shares belong to Holcim LTD, 24% – Holcim Auslandbeteiligungs GmbH. The remaining 10% of the shares are distributed among approximately 700 minority shareholders.

Source: Turan News Agency