Sephaku says cement market still seeing excess demand amid slow infrastructure rollout

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Sephaku says cement market still seeing excess demand amid slow infrastructure rollout

Cement maker Sephaku said on Thursday while SA has seen a pickup in activity in road construction, overall infrastructure development remains subdued, with excess capacity in the market and cost pressure cutting its interim profit by a quarter.

Profit fell 26% to R19.7 million in the six months to end-September, the group said, even though revenue climbed almost a fifth to R627 million. The group's subsidiary Métier struggled amid an 11.5% rise in diesel costs between April and October 2023, and the cost of electricity increased by 18.7%, with CEO Kenneth Capes saying in the results that while the value of residential buildings passed declined during 2023, activity on civil construction projects and non-residential buildings increased.South Africans need to be in the know if we want to create a prosperous future.

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