JSE-listed building and construction materials company Sephaku Holdings grew its revenue for the six months to September 30 to R665.1-million, up from R613.8-million in the six months to end September 2024.

The group also recorded an increase in net profit after tax to R36.7-million, compared with R32.6-million in the prior comparable period.

South Africa's economy remained fragile during the first half of calendar 2025, with GDP growth stagnating at 0.3% in the first quarter and improving marginally to 0.6% in the second quarter, says Sephaku Holdings CEO Kenneth Capes.

The group also saw basic earnings a share increase to 15.93c a share, up from 13.91c a share in the six months to end September 2024. Headline earnings a share for the period under review increased to 14.45c a share, up from 13.78c a share in the prior financial year's interim period.

Net asset value per share increased to 574.36c a share, up from 538.66c a share in the six months to end September 2024.

Its mixed concrete subsidiary Métier improved its earnings before interest, taxes, depreciation and amortisation (Ebitda) margin to 14.8%, up from 11.2% in the prior comparable period.

Métier also posted profit after tax of R55.5-million for the period under review, up from R36.6-million in the prior comparable period.

Métier continued to outperform market trends by maintaining sales volumes in an intensely competitive environment where pricing pressure remained high, says Capes.

Through disciplined cost management, the prior renewal of ageing assets and price adjustments implemented in January, Métier achieved Ebitda growth and delivered a healthy 14.8% Ebitda margin. The sale of assets that had been replaced impacted net profit after tax by R4.2-million.

Operationally, the business expanded its footprint in KwaZulu-Natal with the addition of a new batch plant to its network, enhancing regional capacity and service reach, he says.

SepCem, by contrast, faced significant regional market pressure, with lower sales volumes and only nominal price adjustments. Its sales revenue for the six-month period under review was R1.1-billion, down from R1.3-billion in the six months to the end of June 2025.

Its Ebitda margin declined to 9.8%, at R110.3-million, down from 11.3%, at R146.7-million, for the six months to end June 2024. It posted a net loss after tax for the six months to end June 2025 of R31.3-million, compared to a net profit after tax of R5-million in the interim period to end June 2024.

Although cost-saving initiatives were successfully implemented in line with group benchmarks, Ebitda was adversely affected by the reduced volumes and price increases that lagged inflation, Capes says.

As a result, SepCem’s 36% equity-accounted profit in the group’s interim profit and loss statement turned around to a R11.3-million loss for the period under review from a R1.5-million profit in the interim period to end June 2024.

Both businesses continued to prioritise margin protection and pursued selective investment in growth opportunities aligned with regional demand dynamics.

While the broader construction sector remains constrained by policy uncertainty and under-investment, Sephaku Holdings remains focused on operational excellence, disciplined capital allocation and strategic positioning to capture emerging opportunities in infrastructure and urban development, says Capes.