INTERIM RESULTS
Sephaku Cement defeats stiff competition to get back to black
Sephaku Cement (SepCem) returned to profitability in the first half of 2018, but the Nigerian-backed cement producer is continuing to struggle with intense competition, particularly in Gauteng. The cyclical nature of building and infrastructure development in SA also helped boost the company’s performance during the period, although this was off a low base due to heavy rainfall in the previous period that affected production. Sales revenue edged up 5% to R1.16bn, while net profit increased to R45m, compared with a R16m net loss in the prior period. This was primarily due to cost-cutting efforts. SepCem, which entered SA’s competitive cement sector in 2015, has faced lagging prices relative to cost inflation, and two new entrants in the sector.
The group, however, increased cement prices by an average of 3% per tonne in August 2017 and 5% in February. This resulted in slightly higher volumes of lower-priced bulk cement and the company missing its revenue target, the company sai...
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