Sephaku Cement sees 10% revenue increase in 2020

South Africa's Sephaku Cement (Dangote Group) has reported a nine per cent YoY increase in sales volumes for 2020, despite 1H20 volumes being down 8.5 per cent YoY. In the 3Q20 the company recorded its highest quarterly volumes to date, according to a statement.

The company’s after-tax profit for 2020 was ZAR44.4m (US$2.99m) compared to ZAR1.3m in the previous year. Revenue also increased 9.8 per cent YoY to ZAR2.40bn from ZAR2.18bn in 2019, due to the relative increase in sales volume. EBITDA advanced 6.2 per cent YoY to ZAR381.4m from ZAR359m, while the EBITDA margin was flat at 16 per cent for the year due to the weak first half performance.

Sephaku Cement implemented price increases of between 5-9 per cent YoY in January 2020 and February 2020 for bulk and bagged cement. Although increases in bulk cement prices held, the price increases on bagged cement were discounted due to intense competition. However, it has increased its overall cement prices by 8-10 per cent in the first two months of 2021.