Sephaku posts net profit growth, but says cement market remains constrained
Building materials company Sephaku Holdings has posted a net profit after tax of R26.7-million for the six months ended September 30, building on the net profit after tax of R17.8-million it posted in the prior comparable six months.
The group, comprising of Métier Mixed Concrete and Dangote Cement, or SepCem, says basic earnings a share increased to 10.51c, compared with a basic profit a share of 6.98c in the six months ended September 30, 2021.
CEO Neil Crafford-Lazarus says Métier performed exceptionally well, despite the economic headwinds of increasing input costs and weak demand, growing its earnings before interest, taxes, depreciation and amortisation by 33% and net profit by 47%.
However, SepCem has been suffering from decreased demand for building materials for close to a year. The company’s market consists mostly of retail customers who buy bagged cement from merchants.
The subsidiary’s sales revenue declined to R1.16-billion, compared with R1.19-billion in the prior comparable period.
The group considers the decrease as a normalisation of demand following a spike experienced at the height of Covid-19.
The interest rate increase cycle from the second half of the 2021 calendar year to date and price increases in essential goods have significantly contributed to the decrease in retail demand.
SepCem remains focused on increasing volumes and pricing in all its markets, Crafford-Lazarus affirms.
SepHold has been focused on strengthening its balance sheet and enhancing profitability by pursuing innovative sales strategies and improving cost efficiencies.
The group remains confident in its ability to survive the current constrained trading environment.
SepHold will publish its full results on November 16.
Comments
Research Reports
Latest Multimedia
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
