Sephaku swings into a loss as cement sales continue to decline
Weak economic conditions continue to weigh on the group, but it is cautiously optimistic new civil projects will give it a boost in the next 12 months
Building and construction materials group Sephaku Holdings (SepHold) said on Friday it was is cautiously optimistic about the next 12 months after the commencement of several civil construction projects.
The group, however, is expecting an interim headline loss per share of between 3.36c and 4.37c to end-September, compared with the prior period’s headline earnings per share of 12.59c.
The continued decline in concrete sales volumes and flat pricing against inflationary cost increases resulted in a significant decrease in its mixed concrete maker Métier’s net profit, the company said.
That subsidiary is implementing a strategy to geographically diversify plant footprint to maintain optimal sales volumes and cost management initiatives to support profitability, the statement read.
SepCem, its joint venture with Dangote Cement, had seen a 19% decline in cement volumes to end-June, but had seen a steady recovery in sales volumes after September, which has improved its profitability.
“The group remains cautiously optimistic about the next six to 12 months after the commencement of several civil construction projects for the national road network rehabilitation and water storage infrastructure,” SepHold said.
SepHold’s share price was unchanged at R1.30 on Friday morning, having fallen 27.78% year to date.