REG - Steppe Cement Ltd - Trading Update for Q3 2024

Steppe CementAnnouncement

14/10/2024 07:00

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RNS Number : 9762H  Steppe Cement Limited  14 October 2024

14 October 2024

 

Steppe Cement Ltd

("Steppe Cement" or the "Company")

Trading Update for the Third Quarter ended 30 September 2024

Steppe Cement Ltd (AIM: STCM), is pleased to announce the following trading
update for the third quarter ended 30 September 2024 ("Q3 2024" or the
"Period"). All numbers referenced below are unaudited.

·   Steppe Cement generated revenue of KZT 15,085 million (approximately
USD 32 million) in Q3 2024, which was 7% higher than the revenue achieved in
Q3 2023 of KZT 14,116 million (approximately USD 31 million).

·   For the nine months ended 30 September 2024, Steppe Cement recorded
revenue of KZT 30,520 million (approximately USD 67 million) compared with KZT
31,093 million (approximately USD 69 million) in the corresponding nine-month
period in 2023 (a 2% decrease).

·    The increased revenue in the 3 months to 30 September 2024 was
largely attributable to the increase in the volume of sales during the period
to 621,915 tonnes, 5% higher than  in 2023 as well as a 2% increase in the
price of products sold in the quarter.

·      For the first 9 months of 2024, the volume of sales remained at
1.34 million tonnes

·   The average price (ex-VAT) for delivered cement was KZT 22,755
(approximately USD 50) per tonne in the first 9 months, compared with KZT
23,163 (approximately USD 51) per tonne in the corresponding period in 2023.

·    Production levels have increased due to the increased efficiencies
resulting from the capex spent over the previous last two years. Higher
production levels helped to stabilize the cost base as well as to increase the
clinker stock available for the fourth quarter.

·     Steppe Cement has cash and cash equivalents of USD 11 million, as at
7 October 2024.

For the first nine months of 2024, the demand for cement in the domestic
market was 9.1 million tonnes, similar to 2023. In the first 9 months of 2024,
imports into Kazakhstan decreased to 3.5% of total consumption down from 4.6%
in the corresponding period in 2023, while exports from Kazakhstan were 0.72
million tonnes in the 9 months to 30 September 2024 due to higher competition
in Uzbekistan. The current estimate of the cement market for the full year of
2024 is 11.3 million tonnes, the same as in 2023.

Steppe Cement's market share is expected to stay at around 15%.

Javier del Ser Perez, Chief Executive Officer of Steppe Cement, commented:

 "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."

**Ends**

For further information, please contact:

Steppe Cement Ltd
 
          www.steppecement.com (http://www.steppecement.com)

Javier del Ser Pérez, Chief Executive Officer
                                           Tel: +(603)
2166 0361

Strand Hanson Limited (Nominated & Financial Adviser and Broker)
           ww.strandhanson.co.uk

James Spinney / Robert Collins / Ritchie
Balmer
Tel: +44 20 7409 3494

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

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