China-based cement producer BBMG Corp has announced that it expects to report a 52-59 per cent YoY decline in net profit attributable to shareholders in 2022. Net profit for the year is forecast come in at CNY1200m-CNY1400m (US$177m-207m).
Net profit attributable to shareholders after deducting non-recurring profit and loss is predicted to be around CNY350m-550m, representing a YoY fall of 120-132 per cent. Over the same period the company recorded consolidated sales volumes of cement and clinker of around 87Mt, down 13 per cent from the 99.7Mt reported in 2021.
According to BBMG, 2022 saw demand for cement suppressed due to the changing pandemic situation. This, coupled with a significant rise in the average cost of coal and other raw and fuel materials, had a significant impact on the company’s profitability.
