International Cement Group (KUO) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose to $119.255m from $92.322m and profit for the period increased to $18.716m from $13.625m, driven by stronger cement sales in Kazakhstan and Tajikistan.

• Profit attributable to owners increased to $11.528m from $11.072m; lower selling prices, rising raw-material costs and low initial Sharcem volumes weighed on gross margin.

Financial highlights

• Revenue was $119.255m versus $92.322m; gross profit was $44.689m versus $41.222m.

• Operating income was $26.815m versus $19.489m; profit before tax was $24.004m versus $17.491m.

• Net profit was $18.716m versus $13.625m; profit attributable to owners was $11.528m versus $11.072m.

• Other income included $2.0m in foreign-exchange gains, compared with $6.6m in foreign-exchange losses recorded under other expenses in H1 2022.

Outlook and guidance

• Cautiously optimistic for the year ahead, with Central Asian construction-material demand expected to remain strong amid reconstruction, urbanisation and infrastructure growth.

• Priorities include developing the core cement business, expanding distribution networks, controlling costs and completing the Jambyl cement plant and Tajikistan drywall line.

• The 1.5m-tonne annual-capacity Jambyl cement plant was expected to be completed in mid-2024; the Tajikistan drywall line, designed for 30m square metres annually, was expected by Q3 2023.