International Cement Group KUO has reported earnings of $17.9 million for the 2HFY2022 ended Dec 31, 2022, 34% higher than earnings of $13.3 million in the 2HFY2021.
This brings the group’s earnings for the FY2022 to $28.9 million, 10% higher y-o-y. Excluding foreign exchange (forex) losses due to the “major movements” of the Kazakhstani tenge (KZT), against the US dollar and the Chinese renminbi, the group’s earnings would’ve been at $34.5 million, 22% higher y-o-y.
Group revenue for the FY2022 increased by 24% y-o-y to $225.2 million as both the group’s cement and aluminium segments grew. Revenue from the cement segment grew due to the higher cement sales volume and selling price from the Alacem cement plant in Kazakhstan’s Almaty region. The higher revenue from the group’s aluminium segment was due to the higher construction activities in Singapore following the easing of Covid-19 restrictions.
Gross profit for the FY2022 grew by 29% y-o-y to $96.7 million while gross profit margin (GPM) rose by two percentage points y-o-y to 43%. The higher GPM was mainly attributable to the higher profit margin from the Alacem cement plant due to the lower costs in raw material and transportation in Kazakhstan. FY2022 GPM was offset by lower GPM from Tajikistan’s operations on the back of higher raw material costs.
As at Dec 31, 2022, cash and cash equivalents stood at $11.5 million.
Earnings per share (EPS) for the 2HFY2022 and FY2022 stood at 0.31 cents and 0.50 cents on a fully diluted basis respectively.
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No dividend has been declared for the period.
“The investments and acquisitions made in our cement business for the past years have provided a firm foundation for the group, and we are well-positioned to capitalise on the vast opportunities in the Central Asia region,” says the group’s CEO Zhang Zengtao.
“We will continue to focus on growing our presence and gaining market share in Central Asia while keeping an eye on our margins and sales volume to create more sustainable growth and stronger profitability in the coming years,” he adds.
Shares in International Cement Group closed flat at 2.4 cents on Feb 27.
