SEPHAKU Holdings (Sephold) said group headline earnings per share were expected to be between 5.79 cents and 6.39c for the year to March 31, compared with a headline loss of loss per share of 7.97c last year.
SepHold, subsidiary Métier Mixed Concrete and Dangote Cement SA, an associate investment, expected the group basic earnings per share to be between 7.44c and 8.22c, also well up from the headline loss of 8.12c last year.
In a trading update on Friday, the group said Métier’s turnaround programme improved its profitability, resulting from a combination of lower costs and income from the disposal of under-utilised assets.
Métier’s earnings contributed to the group’s positive earnings before equity accounting for the associate, thereby supporting SepHold’s operational expenses for the period under review.
SepCem’s sales volumes were 9 percent higher year-on-year for the 12 months to the end of December in spite of there being zero sales during the pandemic-related restrictions during alert level 5 of the national lockdown. SepCem is a subsidiary of Dangote.
Post-period and following the Dangote Cement plc results announcement for the first quarter to the end of March this year, SepCem’s sales volumes continued to increase by 6 percent compared to the initial quarter to the end of March last year. SepCem’s revenue increased by 16 percent for the period because of a combination of increased volumes and unit prices.
The SepCem first-quarter results would be accounted for in SepHold’s interim financial results for the six months to the end of September this year.
Sephaku’s core investments are a 36 percent stake in Dangote Cement SA and 100 percent in Métier Mixed Concrete.
Economic and other trade data have shown recently that demand for cement and other build materials continued to grow in double digits in South Africa last year, through the recession and the pandemic lockdowns, with the trend continuing into this year.
edward.west@inl.co.za
BUSINESS REPORT ONLINE