Sephaku Cement reports 25% fall in net profits

Sephaku Cement (Dangote group) reported a 35 per cent slump in net profit to ZAR44m (US$31.7m) on a one per cent decline in revenue to ZAR831m for the year to end-March.

"We experienced a challenging operating year as competition in the ready-mix concrete segment intensified characterised by lower volumes and marginal improvement in pricing," Sephaku CEO, Lelau Mohuba, said in the results statement.

"The scenario was much more positive on the cement front with improved industry annual pricing per tonne of 3-5 per cent for the 12 months ended December 2017."

Mohuba said Dangote managed to increase its cement prices by five per cent. "This positive trend in pricing has continued in 2018 calendar year with increases implemented by all producers in most markets during the first quarter. Cement's strong relationships with all major national and regional chain stores, independent hardware retailers and users of bulk cement has been instrumental in our ability to maintain sales volumes," he added.