14th Oct 2024 13:54
(Alliance News) - Steppe Cement Ltd on Monday reported a growth in revenue during the third quarter of 2024, as sales volumes and the average price for cement rose as well.
The operator of two cement production facilities in Kazakhstan said revenue in the third quarter of 2024 ended September 30 was KZT15.09 billion, or GBP23.8 million, which was up 6.9% year-on-year from KZT14.12 billion, or GBP22.3 million.
This revenue growth was primarily due to the increased volume in sales for the three-month period to 621,915 tonnes, which grew 4.8% from 593,352 tonnes in the third quarter of 2023.
For the first nine months of calendar 2024, revenue was KZT30.52 billion, or GBP48.2 million, which was a 1.8% fall year-on-year from KZT31.09 billion, or GBP49.1 million. Sales volumes remained flat year-on-year at 1.3 million tonnes for the nine-month period.
The average price for delivered cement in the nine months to September 30 was KZT22,755 per tonne, or GBP35.93 per tonne, falling 1.8% from KZT23,163 per tonne, or GBP36.57 per tonne, last year.
"Production levels have increased due to the increased efficiencies resulting from the capex spent over the previous last two years", Steppe Cement said. "Higher production levels helped to stabilise the cost base as well as to increase the clinker stock available for the fourth quarter".
The company expects its market share in Kazakhstan to remain at around 15%.
Chief Executive Officer Javier del Ser Perez said: "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."
Shares in Steppe Cement were up 13% at 14.66 pence each in London on Monday afternoon.
By Emily Parsons, Alliance News reporter
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