Sephaku’s earnings set to drop on low cement sales and flat prices

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Belgique Nouvelles Nouvelles

The building and construction materials group is more optimistic about the next 12 months

Building and construction materials group Sephaku Holdings expects a decline in earnings in the first half of the financial year as low sales and flat prices hurt subsidiary and concrete supplier Métier Mixed Concrete’s net profit.

The continued decline in concrete sales volumes and flat pricing against inflationary cost increases resulted in a decrease in Métier’s net profit, the company said. Métier manufactures ready-mix concrete products for SA’s industrial, commercial and residential markets. The group has taken strain from the declining demand and price competition in cement and mixed concrete markets, according to its 2019 annual report.

 

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Yes. That happens when you don’t want to build today because you don’t know if you will own it tomorrow. EWC

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