Sephaku Cement 2021 financial results summary
Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
(“SepHold” or “the Company”)
Sephaku Cement 2021 financial results summary
Following Dangote Cement PLC’s (“DCP”) 2021 financial results announcement for the period ended
31 December 2021, released on 1 March 2021, SepHold provides its shareholders with a detailed report
on Dangote Cement SA (Pty) Ltd.’s (“Sephaku Cement”, “SepCem” or “the associate”) performance.
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. Thirty-six per cent (36%) of SepCem’s profit after tax will be equity accounted for in the SepHold financial
results for the 12 months ending 31 March 2022.
The sales volumes for the twelve months ended 31 December 2021 declined by 1% year-on-year
(“y-o-y”) mainly due to a 15% decrease in volumes during the second half (“H2”) of the year. The
adverse H2 performance resulted from the anomalously higher comparative volumes in 2020 and was
exacerbated by the unplanned plant outages at the beginning of the fourth quarter ended December
2021. As the Company previously disclosed, the exceptional sales volumes in H2 2020 are attributed
to several factors, including increased home improvement projects by individuals with higher
discretionary income. Compared to the twelve months ended 31 December 2019, largely considered a
‘normal’ comparative period, the financial year (“FY”) 2021 first half (“H1”) and H2 sales volumes were
12% and 6% higher respectively, resulting in an annualised increase of approximately 8%.
Annual imported cement volumes increased by 7% y-o-y to approximately 1.1 million tonnes (2020:
990,000t). Approximately 83% of the total imported volumes entered through the Durban port in
KwaZulu Natal (“KZN”) province, and 63% was imported from Vietnam. The cement industry’s
application for a safeguard tariff from the International Trade Administration Commission of South Africa
has continued to stall. A positive outcome would meaningfully improve the performance of the building
Revenue and profitability
SepCem’s revenue increased by 7% to R2.56 billion (2020: R2.40 billion) due to the relative increase
in the selling price. The earnings before interest, taxation, depreciation, and amortisation (“EBITDA”)
decreased to R374 million compared to R381 million in 2020. The resultant annual after-tax profit was
R81.6 million compared to R44.4 million in 2020. The 36% equity-accounted profit for SepHold FY 2022
financial results is R29.4 million.
¹ All percentages round up to the nearest 10.
By 31 December 2021, the project loan capital balance was R666 million representing a decrease of
35% compared to the capital balance of R1.02 billion on 31 December 2020. The total annual
repayment was R427 million, constituting capital of R353 million and interest of R74 million. The DCP
loan balance increased to R627 million from R581 million in the comparative period. In February 2022,
the associate made a capital payment of R69 million further reducing the capital balance to R597 million.
The next capital payment of R69 million is due in May 2022, resulting in an outstanding capital balance
of R528 million. Sephaku Cement’s management continues to engage the lenders to convert the project
loan bullet instalment due in November 2022 into a revolving facility by mid-year 2022 calendar year.
7 March 2022
Investor Relations Officer
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 Metier Mixed Concrete (Pty) Ltd.
Date: 07-03-2022 01:30:00
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