Profit of Holcim-Azerbaijan Reduced

Holcim (Azerbaijan) has published the financial report for 2014 audited by Ernst & Young (https://home-cms.holcim.com/holcimcms/fileadmin/templates/AZ/doc/Publications/2014-cue_il_uecuen_Holcim__Az__rbaycan__ASC-nin_illik_hesabati.pdf), according to which the company's net profit (39.7 million manat) decreased 23% compared to the previous year.

In 2014, sales of cement amounted to over 134 million manat, which is 24% less than the previous year. The volume of sales is not reported. Last year, the price of cement in Azerbaijan was stable, and probably the company reduced sales.

Cost of sales amounted to 58 million manat, which is 11 million manat less than in 2013.

Last year, the costs of Holcim (Azerbaijan) for the delivery of products and administrative expenses were reduced by 3 million 217 thousand and 2 million 45 thousand manat. Whereas in 2013 the company suffered a foreign exchange loss in the amount of 2 million 728.3 thousand manat, in 2014 it received profit of 5 million 330.7 thousand manat from this.

Thus, as a result of these and other costs, profit of Holcim (Azerbaijan) before taxes amounted to over 50.6 million manat. Income tax in the amount of 10.8 million manat was paid, which is about 2.7 million manat less than in 2013.

The company's assets for the year did not change, and as of 31 December 2014 the assets of Holcim (Azerbaijan) comprised 394.9 million manat. It is noteworthy that the retained earnings of the company reach 232 million manat. Commitments of the cement plant for the year fell from 53.6 million to 35.1 million manat.

Recall that in March this year, the general meeting of shareholders took a decision on profit distribution, according to which the payment of dividends is directed about 19 million manat. Dividend per share is 12.48 manat. In 2013 the per share dividend was 32.42 manat. The nominal value of a share is 20 manat.

The annual capacity is 1.7 million tons of cement per year. Cement market in Azerbaijan is estimated at 3.3 million tons.

The controlling stake (66%) of the shares of Holcim (Azerbaijan) belongs to Holcim Ltd (Switzerland). 10% of the shares are at the European Bank for Reconstruction and Development and the state-run Azerbaijan Investment Company each. Shareholders are also three legal entities: Holcim Auslandbeteiligungs GmbH – 4.24% and so on natural and legal persons (9.76%).

JSC Holcim (Azerbaijan) was established in 1998 on the basis of the Garadagh cement plant. The authorized capital stock is 31 million manat. ----08B