TCC Group Holdings (1101) Q3 2024 earnings summary

Executive summary

• Leading cement and green energy group with dominant market share in Taiwan and strong positions in Southern China, Europe, Turkey, and Africa, focusing on low-carbon transformation and green energy solutions.

• Revenue for the nine months ended September 30, 2024, rose 30% year-over-year to NT$105.6 billion, driven by strong performance in cement, energy, and new acquisitions.

• Major acquisitions in 2024 included Cimpor Portugal Holdings (CPH) and TCC Oyak Amsterdam Holdings (TCAH), expanding the group's international footprint.

• Strategic expansion in Europe, Turkey, and Africa through consolidation of Cimpor and OYAK Cement, leveraging early-mover advantage in low-carbon cement and alternative materials.

• Robust ESG agenda, high international recognition, and clear net-zero roadmap aligned with SBTi and ISO guidelines.

Financial highlights

• 9M 2024 revenue reached EUR 3,067m, up from EUR 2,352m in 9M 2023; gross profit margin improved to 20.2% from 17.6% year-over-year.

• Net income for 9M 2024 was EUR 301m (9.8% margin), up from EUR 218m (9.3%) in 9M 2023.

• Operating cash flow for 9M 2024 was EUR 788m, a significant increase from EUR 217m in 2023, indicating strong cash generation.

• Total assets as of September 2024 stood at EUR 17,034m, with equity of EUR 8,812m.

• Gross profit margin improved to 20% for the nine-month period, up from 18% a year earlier.

Outlook and guidance

• Targeting full replacement of Portland Type I cement with low-carbon alternatives by 2026.

• Net-zero emissions roadmap for 2050, with interim 2030 targets for carbon intensity reduction across all major business units.

• Management expects continued growth from recent acquisitions and ongoing expansion in energy storage and renewable energy segments.

• Continued expansion of renewable energy, energy storage, and EV charging infrastructure, especially in Europe.