Finance and results

Aalborg Portland Holding financial statements 2020: Increased earnings, delivering a strong foundation for sustainable investments

The financial statements of the Aalborg Portland Holding Group show an increase in revenue to DKK 9.1bn and earnings before tax (EBIT) of DKK 1.3bn. With a low interest-bearing debt and high equity, the Group is well positioned for further investments in growth and sustainability, and more initiatives are already under way.

Aalborg Portland Holding is the parent of a number of cement and concrete companies in countries including Belgium, USA, Turkey, Egypt, Malaysia and China, as well as subsidiaries such as Aalborg Portland A/S and Unicon A/S in the Nordic region.

The Group achieved revenue of DKK 9,133m, while earnings before interest and tax (EBIT) were DKK 1,301m, an increase of just over 18% compared to 2019. Profit after tax was DKK 931m compared to DKK 710m in 2019.

"Despite an unusual 2020, we achieved a result that as a whole and with the Covid-19 situation taken into account lived up to expectations. We are pleased that we have again delivered the highest revenue in the Group's history, and that since the financial crisis we have recorded more than a decade of constant top-line growth and continued solid global earnings," says Henning Bæk, CFO of Aalborg Portland Holding.

"The past year has shown that the international markets play an increasingly important role for the Group in terms of both growth and risk diversification. Last year's activities, especially in Turkey and Egypt, contributed to a solid increase in revenue, and we can also see that our investments in these two countries are delivering further progress in operating profit," continues Henning Bæk.

Growth for the Group in 2020 was also driven by a strengthened position in the Nordic and Baltic countries driven by progress in Denmark and Sweden, while Norway experienced slowdown in housing and commercial construction. In the ready-mixed concrete segment, the Group is investing to consolidate its market position in the Nordic region, and additional planned facility upgrades will become operational this year. In total, the Nordic and Baltic countries accounted for 46% of the Group's revenue for 2020.

"Continued focus for a number of years on streamlining operations, positive cash flows and solid earnings have helped to ensure low interest-bearing debt and high equity. With a healthy economy and a solid financial foundation, we have the opportunity to make long-term, value-creating and - not least - sustainable investments," explains Henning Bæk.

Aalborg Portland's activities in Denmark currently account for approx. 25% of the Group's total activities. The Group paid approx. DKK 285m in corporate tax in the countries in which it is represented, including a significant amount of approx. DKK 140m in Denmark, which places Aalborg Portland Holding among Denmark's largest tax-paying companies.

Commitment to sustainable investments
The Group has targeted a 30% reduction in CO2 emission by 2030. Therefore, approx. DKK 750m has been dedicated to environmental investments projects over the next three years to strengthen sustainability worldwide - including in Denmark, which is home to the global research and development department that has been the Group's spearhead for innovation and sustainability for several decades.

As a result of Aalborg Portland Holding's continued focus on sustainable initiatives, early 2021 saw the market launch of FuturecemTM, a revolutionary new type of cement with a 30% lower CO2 footprint. In 2020, the Group reached its goal of supplying the city of Aalborg with CO2-neutral district heating corresponding to the consumption of 30,000 households. As a further initiative, it is planned in 2022 to connect the Aalborg cement plant to natural gas, reducing CO2 emissions by up to 40% compared to coal. In addition, Aalborg Portland has begun to investigate the possibilities for CO2 capture, storage and conversion to green fuel.

However, the framework conditions for the European part of the Group must continue to support the earnings and competitiveness of our companies if the green transition within energy-intensive industry is to be maintained:

"We must be able to achieve a return on the investments we make. Therefore, the national regulations for energy-intensive industries should reflect the fact that a very significant part of our European cement production is exported to countries outside Europe, and that our industry is in full swing with a green transition that will lead to increasingly sustainable cement production," concludes Henning Bæk.

Fact box - Aalborg Portland Holding A/S


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