Middle East Africa

During Q3, Adjusted Operating EBITDA in the Middle East Africa region continued to be negatively impacted by challenging conditions in Nigeria. Adjusted Operating EBITDA on a like-for-like basis was down 5.1 percent on slightly increased net sales. For the region, Adjusted Operating EBITDA would have been up by 28 percent on a like-for-like basis in Q3 without the effect of Nigeria.

Countries across the Middle East, North Africa and Sub-Saharan Africa made positive contributions with Algeria, Egypt, Iraq, Lebanon and Uganda all adding to Adjusted Operating EBITDA growth.

Algeria saw volumes hold up well through the Eid festival period with social housing and infrastructure projects continuing to be drivers of demand. Adjusted Operating EBITDA in Egypt was buoyed by a supportive market, good contracts and the effective implementation of the company’s pricing strategy. In Iraq, more favorable market conditions helped to drive improved performance compared to last year.

For a second quarter, Nigeria had a negative impact on Adjusted Operating EBITDA. Conditions continue to be difficult though pricing has improved, especially during September. Measures to increase fuel flexibility following gas supply interruptions earlier in the year enabled production levels to recover at the end of the quarter. Plans are now in place to address logistical problems with the objective to ensure full supply levels to customers.

Middle East Africa – Pro forma information

 

 

July–Sept
2016

July–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

9.5

10.4

–8.3

+2.8

Sales of aggregates

million t

2.9

3.0

–3.1

+1.5

Sales of ready-mix concrete

million m3

1.4

1.3

+7.2

+12.3

Net sales

million CHF

882

1,065

–17.2

+1.4

Operating EBITDA

million CHF

232

298

–22.3

–4.5

Operating EBITDA adjusted1

million CHF

240

309

–22.6

–5.1

Operating EBITDA margin

%

26.3

28.0

 

 

Operating EBITDA margin adjusted1

%

27.2

29.1

 

 

Cash flow from operating activities

million CHF

163

190

–14.6

+0.9

Operating Free Cash Flow2

million CHF

85

41

+106.3

+257.6

Middle East Africa – Pro forma information

 

 

Jan–Sept
2016

Jan–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

31.2

32.0

–2.5

+1.0

Sales of aggregates

million t

8.9

8.5

+5.4

+7.2

Sales of ready-mix concrete

million m3

4.6

4.1

+10.4

+12.1

Net sales

million CHF

3,012

3,455

–12.8

–3.7

Operating EBITDA

million CHF

808

1,065

–24.2

–16.9

Operating EBITDA adjusted1

million CHF

826

1,090

–24.2

–17.0

Operating EBITDA margin

%

26.8

30.8

 

 

Operating EBITDA margin adjusted1

%

27.4

31.5

 

 

Cash flow from operating activities

million CHF

518

643

–19.3

–14.1

Operating Free Cash Flow2

million CHF

251

251

+0.1

+1.6