Displaying items by tag: Results

China: Poor performance by CNBM’s Basic Building Materials division dragged down the group’s sales in 2023 despite positive performance by the group’s Engineering Technical Services and New Materials segments. Its revenue fell by 10% year-on-year to US$29.1bn in 2023 from US$32.3bn in 2022. Its profit after tax dropped by 33% to US$1.44bn from US$2.13bn. Sales volumes of cement and clinker decreased by 3% to 309Mt from 317Mt. Sales volumes of commercial concrete fell by 5% to 80.8Mm³ from 84.7Mm³.

Revenue for the Basic Building Materials division fell by 19% to US$16.4bn. The company blamed this on a fall in the price of cement, concrete and aggregates although an increase in sales volume of aggregates was noted. The group said that in 2023, the cement industry was characterised by ‘insufficient demand, weakening expectations and weakening off-peak season characteristics,’ coupled with and aggravating surplus and high costs.

China: Huaxin Cement grew its revenue and profit in 2023 by growing its concrete market domestically and increasing its international business. Its revenue rose by 11% year-on-year to US$4.67bn in 2023 from US$4.21bn in 2022. However its operating revenue from cement and clinker declined. The group’s net profit increased by 2% to US$382m from US$373m. Its cement sales volumes grew by 2% to 76.8Mt from 75.3Mt. Concrete sales volumes mounted by 66% to 27.3Mm³.

The share of its international business grew by 16% in 2023 from 13% in 2022. Notable acquisitions in 2023 included the purchases of Oman Cement and InterCement’s assets in Sub-Saharan Africa.

China: China Tianrui Group Cement's sales were US$1.09bn in 2023, down by 32% year-on-year from US$1.60bn. Reuters has reported that the company recorded a full-year loss of US$87.6m, where previously it recorded a profit of US$62m in 2022.

Egypt: Sinai Cement reported a reduction in its consolidated net loss after tax in 2023, amounting to US$2.57m, down from US$7m in 2022. The company's net sales saw an increase, reaching US$90.8m in 2023, up from US$49.6m the previous year.

Italy: Buzzi reported a net profit of €967m in 2023, more than doubling from €459m in the previous year. The company's consolidated revenue rose by 8.1% to €4.3bn, despite a fall in cement and concrete sales volumes of 7% and 12.7% respectively. Earnings before interest, taxation, depreciation and amortisation (EBITDA) reached €1.2bn, marking a 40.7% year-on-year increase.

UAE: Fujairah Cement’s revenue fell by 8% year-on-year to US$93.6m in 2023 from US$102m in 2022. It reported a net loss of US$72.3m, up by 85% from a loss of US$39.2m. The company blamed the situation on higher production costs due to rising coal and fuel prices. It said that it plans to increase its cement sales volumes domestically and internationally to improve its capacity utilisation rate. It operates an integrated cement plant at Dibba in Fujairah Emirate.

South Africa: PPC’s revenue grew strongly in the 10 month period to 31 January 2024 mainly due to sales growth from its subsidiary in Zimbabwe. Revenue also mounted in the group’s South African and Botswana cement business, where prices rises offset falling sales volumes. Earnings grew across the business. The company said that sales volumes in the coastal region of South Africa “experienced a sharper decline than in the inland region, mainly due to a weaker retail market and a lack of infrastructure projects in the area.” It added that the performance in group’s South Africa and Botswana units had further deteriorated in February and March 2024. In Zimbabwe sales benefitted from both residential construction and government funded infrastructure projects, constrained imports and a low base in the previous reporting period.

PPC completed the sale of its 51% stake in Rwanda-based Cimerwa to Kenya-based Devki Group subsidiary National Cement in late January 2024.

UAE: Fujairah Cement has reported accumulated losses reaching over a third of its capital, primarily due to inflation and decreased revenue, according to Zawya. The total accumulated losses for the 2023 financial year stood at US$35.5m, equating to 36.68% of the company's capital, as disclosed on the Abu Dhabi Securities Exchange.

The company attributes the increase in losses to various factors, including the rising cost of coal and energy, lower clinker selling prices, a decline in revenue, and higher logistics and finance costs. The company is currently in advanced talks to appoint a renowned financial advisor for assistance in restructuring and exploring other potential options to mitigate these losses.

A separate disclosure highlighted that the major challenge faced during the year was the escalated production costs, primarily driven by increased coal and fuel prices.

Kenya: East African Portland Cement (EAPCC) has closed its Athi River plant for a US$3m upgrade to boost production capacity.

Oliver Kirubai, EAPCC's managing director, said "We are doing the second phase of our machines upgrade, which is basically targeting to increase our output. Our target is that by June 2026 we should be able to produce 1Mt/yr of cement." He added "Seven local contractors are spearheading the upgrade of this plant. They will work with us during the 25-day closure of this facility." The current production capacity of the plant is 310,000t/yr.

EAPCC recorded a loss of US$9.8m for the financial year ending June 2023, despite making a profit of US$4m in the previous year. This shift was due to increased costs elevating the firm's cost of sales to US$29.4m from US$29.9m, despite a 37% increase in revenues to US$21.9m from US$15.9 in the previous year.

China: Anhui Conch Cement's turnover was US$19.6bn in 2023, up by 6.8% year-on-year from 2022 levels. Sales of 42.5 grade cement contributed US$8.46bn (43% of turnover), down by 12% year-on-year. Meanwhile, sales of commercial concrete grew by 25% to US$313m (1.6% of turnover). Overall, the producer’s net profit fell by 33% to US$1.48bn.

Anhui Conch Cement commenced a share buyback programme for up to US$83m-worth of its listed stock in November 2023. At the end of the year, it had repurchased 0.3% of its shares.