Despite a “challenging” interim period characterised by negative earnings, JSE-listed Sephaku Holdings is committed to weathering the downturn and emerging as a renowned building materials entity.
The company reported a net loss of R7.7-million for the six months ended September 30, compared with the net profit of R26.5-million reported for the six months ended September 30, 2018.
It incurred a headline loss a share of 4c, compared with headline earnings a share of 12.5c in the prior corresponding period.
The loss was mainly driven by the company’s Dangote Cement subsidiary, which reported a loss of R21-million, while its Métier Mixed Concrete subsidiary reported a R7-million profit.
Outgoing Sephaku CEO Dr Lelau Mohuba said his final remarks before retiring as CEO came at a time when the company required all hands on deck; however, he was confident that the management team could achieve the company’s strategic goals going forward.
He added that the building materials industry remained under pressure owing to declining infrastructure investment.
“The operating landscape had resulted in some competitors engaging in extremely aggressive marketing tactics to secure market share.
“The consequences of these tactics included the growth of blenders, owing to the price competition in bulk cement supply and irrational pricing in the mixed concrete markets.”
The company remained focussed on sustainability through lowering debt, improving cost efficiencies, defending market share, enhancing risk management processes and strengthening its stakeholder engagement efforts.
“We continue to explore diversification investment opportunities to enhance shareholder value. Therefore, in spite of the challenging interim period characterised by negative earnings, we are committed to weathering the downturn so as to emerge a renowned building materials entity,” the company stated.