Steppe Cement revenues fall as volumes and prices decline

AIM-traded Kazakh cement producer said it expects to report lower revenues for 2023 as average prices and volumes both declined year-on-year, while inflation is continuing to hold back bottom-line progress.

The company said revenues for the 12 months to 31 December came to 37.3bn KZT ($82m), down 7% on 2022, with cement sales falling 3% to 1.63m tonnes.

Meanwhile, the average price for delivered cement excluding VAT fell 4% over the year to 22,927 KZT ($50) per tonne.

Cement market consumption across Kazakhstan was relatively stable in 2023 at 11.5m tonnes, thought Steppe Cement's local market share eased to 14.2% from 14.5% previously.

The country's official inflation rate was reduced to 9.8% but Steppe Cement said it will continue to impact production and labour costs in 2024.

"The company continued its focus on the domestic market in Kazakhstan, due to increasing logistical and cost inefficiencies of transporting cement long distances / internationally. This resulted in reduced top-line revenue but is expected to translate into higher margins," it said in a statement on Friday.

Shares were 2.2% higher at 22.48p by 1034 GMT, having falling nearly 50% over the past 12 months.