14 October 2024
Steppe Cement Ltd
("Steppe Cement" or the "Company")
Trading Update for the Third Quarter ended 30
September 2024
Steppe Cement Ltd (AIM: STCM), is pleased to announce
the following trading update for the third quarter ended 30
September 2024 ("Q3 2024" or the "Period"). All numbers referenced
below are unaudited.
·
Steppe Cement generated revenue of KZT 15,085 million
(approximately USD 32 million) in Q3 2024, which was 7% higher than
the revenue achieved in Q3 2023 of KZT 14,116 million
(approximately USD 31 million).
· For the nine
months ended 30 September 2024, Steppe Cement recorded revenue of
KZT 30,520 million (approximately USD 67 million) compared with KZT
31,093 million (approximately USD 69 million) in the corresponding
nine-month period in 2023 (a 2% decrease).
· The
increased revenue in the 3 months to 30 September 2024 was largely
attributable to the increase in the volume of sales during the
period to 621,915 tonnes, 5% higher than in 2023 as well as a
2% increase in the price of products sold in the quarter.
·
For the first 9 months of 2024, the volume of
sales remained at 1.34 million tonnes
· The average
price (ex-VAT) for delivered cement was KZT 22,755 (approximately
USD 50) per tonne in the first 9 months, compared with KZT 23,163
(approximately USD 51) per tonne in the corresponding period in
2023.
·
Production levels have increased due to the
increased efficiencies resulting from the capex spent over the
previous last two years. Higher production levels helped to
stabilize the cost base as well as to increase the clinker stock
available for the fourth quarter.
· Steppe
Cement has cash and cash equivalents of USD 11 million, as at 7
October 2024.
For the first nine months of 2024, the demand for
cement in the domestic market was 9.1 million tonnes, similar to
2023. In the first 9 months of 2024, imports into Kazakhstan
decreased to 3.5% of total consumption down from 4.6% in the
corresponding period in 2023, while exports from Kazakhstan were
0.72 million tonnes in the 9 months to 30 September 2024 due to
higher competition in Uzbekistan. The current estimate of the
cement market for the full year of 2024 is 11.3 million tonnes, the
same as in 2023.
Steppe Cement's market share is expected to stay at
around 15%.
Javier del Ser Perez, Chief Executive Officer of
Steppe Cement, commented:
"We recovered
both volumes and pricing in the third quarter of 2024, following a
price adjustment in the second quarter. While competition remains
strong, our factory has continued to enhance its capacity and
productivity, enabling us to offset the impact of past inflation.
We remain focused on driving higher volumes and cash
generation."
**Ends**
For further information, please contact:
Steppe Cement
Ltd
www.steppecement.com
Javier del Ser Pérez, Chief Executive Officer
Tel: +(603) 2166 0361
Strand Hanson Limited
(Nominated & Financial Adviser and Broker)
ww.strandhanson.co.uk
James Spinney / Robert Collins / Ritchie
Balmer
Tel: +44 20 7409 3494
The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.