Wrap Text
Unaudited condensed consolidated interim financial results for the six months ended 30 September 2023
Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 2005/003306/06)
JSE share code: SEP
ISIN: ZAE000138459
("SepHold" or the "Company")
Unaudited condensed consolidated interim financial results for the six months ended 30 September 2023
SepHold is pleased to report on the Group's unaudited condensed consolidated interim financial results for the
six months ended 30 September 2023. SepHold, Métier Mixed Concrete (Pty) Ltd ("Métier" or "the Subsidiary")
and Dangote Cement SA (Pty) Ltd ("SepCem" or "the Associate") are collectively referred to as the Group.
Salient points
Group¹
- Group consolidated revenue: R626,6 million [H1 2023: R523,6 million]
- Net profit after tax: R19,7 million [H1 2023 net profit after tax: R26,7 million]
- Basic earnings per share: 7.74 cents [H1 2023 basic earnings per share: 10.51 cents]
- Headline earnings per share: 7.54 cents [H1 2023 headline earnings per share: 11.26 cents]
- Net asset value per share: 467.56 cents [H1 2023: 461.35 cents]
Métier¹
- EBITDA margin: 10.0% at R62,8 million [H1 2023: 11.3% at R59,2 million]
- EBIT margin: 8.4% at R52,3 million [H1 2023: 8.4% at R43,8 million]
- Profit after tax: R37,8 million [H1 2023 profit after tax: R29,5 million]
SepCem²
- Sales revenue: R1,24 billion [H1 2022: R1,16 billion]
- EBITDA margin: 8.6% at R106,9 million [H1 2022: 12.6 % at R146,9 million]
- EBIT margin: 1.1% at R14,2 million [H1 2022: 5.3% at R61,8 million]
- Net loss after tax: R38,9 million [H1 2022 net profit after tax: R10,5 million]
- SepCem 36% equity accounted loss: R14,0 million [H1 2023 equity accounted profit: R3,8 million]
No dividends were declared or paid during the six months ended 30 September 2023.
¹Figures refer to the interim period ended 30 September 2023 for the financial year ending 31 March 2024, and H1 2023 refers to the six
months ended 30 September 2022 for the financial year ended 31 March 2023.
²SepCem has a December year-end as a subsidiary of Dangote Cement PLC. Therefore, the figures refer to the six months ended 30 June
2023, and H1 2022 refers to the figures for the interim ended 30 June 2022.
Remarking on the results, Chief Executive Officer, Kenneth Capes said,
"SepHold's general operating environment remained subdued during the first six months of the financial
year. Building construction works improved slightly during the first quarter of calendar 2023 but dipped
in the second quarter. While the year-on-year value of residential buildings passed declined during
2023, activity on civil construction projects and non-residential buildings increased. The rising cost of
essential goods and services, coupled with higher interest rates, continued to erode the disposable
income of consumers, maintaining pressure on the retail market.
Despite the additional challenges of escalating diesel costs, the water crisis in Gauteng and congestion
on the N3/N2 highway in KwaZulu Natal, SepHold's ready-mix business, Métier, delivered a strong set of
results. Métier's performance was achieved by capitalising on opportunities in the industrial and
infrastructure development sectors, managing costs consistently and enhancing profit margins with
customer centric products and solutions.
The combination of excess capacity, lower demand for bagged cement from retail customers and
above-inflation fuel and electricity costs eroded SepCem's profit margins, resulting in a net loss after
tax of R38,9 million. While SepCem continues to apply austerity measures, to be sustainable the
business will have to recover input cost increases in a competitive market, through price growth
measures. SepCem's 36% equity-accounted loss in the Group's interim profit and loss statement is
R14,0 million.
Métier and SepCem remained resilient in challenging market conditions. Both businesses will continue
to focus on cost efficiencies and innovative sales strategies to maintain market share. The strengthening
of their balance sheets in FY 2023 positioned the businesses to capitalise on growth opportunities as
they arise."
Investor presentation webcast and conference call
The results webcast and conference call for investors will be at 10:00hs SAST on 14 November 2023. Pre-
registration is required and can be done using the following links to obtain the dial-in details: Sephaku Holdings
FY 2024 Interim Results webcast link and Sephaku Holdings FY 2024 Interim Results conference call pre-
registration
The results presentation will be available on the Company website from 07:45hs SAST on 14 November 2023 at
the following link: https://sephakuholdings.com/investor-centre/presentations/
Replay dial-in details
South Africa 010 500 4108
International +27 10 500 4108
Access code 43307#
Forward-looking statements
Any forward-looking information is the board of directors' responsibility and has not been reviewed or reported
on by the Company's external auditors.
Directors' statement
The contents of this short-form announcement are the responsibility of the SepHold board of directors and have
not been reviewed or reported on by the Company's external auditors.
Shareholders are advised that this short-form announcement represents a summary of the information
contained in the full announcement, published on the Stock Exchange News Service (SENS) at
https://senspdf.jse.co.za/documents/2023/jse/isse/SEP/Int2023.pdf and on SepHold's website:
www.sephakuholdings.com on 9 November 2023.
The full announcement is available for inspection at no charge during normal business hours at SepHold's
registered office. Copies of the full announcement may also be requested by email at info@sephold.co.za. Any
investment decisions by investors and/or shareholders should be based on consideration of the full
announcement, and shareholders are encouraged to review the full announcement, which is available for
viewing on SENS and on the Company's, website set out above.
Centurion
9 November 2023
__________________________________________________________________________________
Enquiries contact:
Neil Crafford-Lazarus
Financial Director
info@sephold.co.za
012 648 6300
Sponsor to Sephaku Holdings: Questco Corporate Advisory (Pty) Ltd
About Sephaku Holdings Limited
Sephaku Holdings Limited is a building and construction materials company with a portfolio of investments in the cement
sector in South Africa. The company's core investments are a 36% stake in Dangote Cement SA (Pty) Ltd and 100% in Métier
Mixed Concrete (Pty) Ltd. SepHold's strategy is to generate growth and realise value for shareholders through the production
of cement and ready mixed concrete in Southern Africa.
www.sephakuholdings.com
Date: 09-11-2023 09:00:00
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