Steppe Cement sees 65% surge in 1H post-tax consolidated profit

Steppe Cement has announced a consolidated profit after tax of US$10.2m for the six months ended 30 June 2022, up 65 per cent YoY.

The Kazakstan cement producer’s gross margin in the 1H22 edged up from 44 to 46 per cent in US$ terms on the back of cement price increases.

Selling expenses per tonne (in US$ terms) were down 20 per cent YoY in the 1H22 due to increased sales to markets located closer to the company’s cement plant.

However, production costs increased by 11 per cent in tenge terms in the 1H22 due mainly to higher costs for electricity, diesel and spare parts. Administrative expenses were up seven per cent YoY. The six per cent depreciation of the tenge resulted in an exchange loss of US$0.2m.