Wrap Text
Sephaku Cement 2025 financial results and Métier operational update
Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459
("SepHold" or "the Company")
Sephaku Cement 2025 financial results and Métier operational update
Following Dangote Cement PLC's ("DCP") 2025 financial results announcement for the period ended
31 December 2025, SepHold reports on Dangote Cement SA (Pty) Ltd.'s ("Sephaku Cement",
"SepCem" or "the associate") performance. The commentary also includes an update on Métier Mixed
Concrete (Pty) Ltd.'s ("Métier" or "the subsidiary") operational performance.
Commentary
Sephaku Cement
Sales, Revenue and Profitability
SepCem's after-tax profit for the 12 months ended 31 December 2025 was R24.5 million, compared to
R42.6 million in 2024. Of this, R8.8 million (2024: R15.3 million) will be included in SepHold's results
for the period ending 31 March 2026, as "SepHold".
For the 12 months ended 31 December 2025, sales volume decreased by 4.5% year-on-year ("Y-o-Y"),
resulting in a 4.4% decline in revenue, which amounted to R2,663 million (2024: R2,785 million).
EBITDA for the year dropped by 6.8%, from R320.7 million to R301.1 million. Sephaku Cement
experienced a subdued start to 2025, with EBITDA of R110 million reported for the first half of 2025
("1H25"), similar to the 2023 comparative period. Excessive rain during the first quarter of 2025 and low
construction activity in inland region yielded a drop in bulk sales volumes. Fierce competition in the bag
market resulted in price pressure and a slight volume contraction. This was exacerbated by cement
imports which grew by 27% YoY for 1H25. SepCem also completed its planned kiln maintenance repairs
during 1H25, which impacted inventory movements. Various recovery plans, improved efficiencies,
stable production levels and fierce austerity measures yielded a stronger performance during the
second half of 2025, with EBITDA improving to R191 million, notwithstanding imports, which grew 25%
for the full year 2025.
SepCem continues to implement various cost-saving and efficiency improvement initiatives, supported
by the Dangote Group, to mitigate the negative impact of low demand in the market. Furthermore, an
easing of finance cost but a higher depreciation charge resulted in a similar decrease in the profit after-
tax number as in EBITDA.
Debt management
On 31 October 2025, the bank loan was paid in full. DCP's subordinated loan balance on 31 December
2025 was R923 million, at an interest rate of JIBAR plus 4%, which was accrued and capitalised.
The full Dangote Cement PLC's results, which incorporate SepCem's results for the year ended 31
December 2025, can be accessed at the following link:
https://www.dangotecement.com/wp-content/uploads/2026/03/Dangote-Cement-Plc-Full-Year-2025-Accounts-
1.pdf
Métier
Sales, Revenue and Profitability
Métier was impacted by stagnant economic conditions and ongoing challenges in the construction
sector, resulting in only a 2% increase in sales volumes for the 11 months ended 28 February 2026 in
comparison to the prior period. However, it still managed to achieve an increase in EBITDA in excess
of R30m based on management's unaudited accounts. The improvement in performance was primarily
driven by disciplined cost optimization initiatives and enhanced pricing strategies aligned to product
segmentation, with price increases exceeding inflationary pressures.
Debt management
Métier utilizes various vehicle and property finance facilities to fund its fleet and expansion projects. The
current utilization stands at R162 million, from an available R244 million, in addition to an overdraft
facility of R40 million. The net debt position at the end of February 2025 was R80 million.
Outlook
The Government of National Unity remains intact, but economic growth continues to be subdued,
limiting broad-based demand. Public infrastructure projects are advancing and provide a stabilizing
pipeline for the construction sector, while private activity remains subdued while limited to
refurbishments, and mixed-use developments. Building plans passed remain constrained, underscoring
the cautious demand for new materials.
Volatile oil prices, driven by extended geopolitical conflict, present a significant risk to margins through
higher fuel, logistics, and input costs. Supply chain pressures persist, keeping material costs elevated,
though credit conditions are gradually easing and improving financing prospects for well-structured
projects.
Overall, the sector is expected to deliver disciplined growth, supported by government-led infrastructure
programmes, but operational performance will be tested by global instability, the governments' ability
to implement infrastructure development and the need for careful risk management.
Any forward-looking information in this announcement has not been reviewed or reported on by the Company's external auditors.
All Sephaku Cement figures included below are shown on a 100% basis and do not reflect SepHold's 36% attributable interest
unless otherwise stated.
Centurion
31 March 2026
_________________________________________________________________________________
Enquiries contact: Neil Crafford-Lazarus Sephaku Holdings 012 684 6300
Sponsor: Questco Corporate Advisory (Pty) Ltd
About Sephaku Holdings Limited
SepHold is a building and construction materials company with a portfolio of investments in the cement sector in South Africa.
The strategy of SepHold is to generate growth and realise value for shareholders through the production of cement and ready
mixed concrete in Southern Africa. The Company's core investments are a 36% stake in Dangote Cement South Africa (Pty) Ltd
(Sephaku Cement) and 100% in Métier Mixed Concrete (Pty) Ltd.
www.sephakuholdings.com
Date: 31-03-2026 12:10:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
