International Cement Group (KUO) H1 2025 earnings summary

Executive summary

• 1H2025 revenue rose 51% YoY to $165.1m and net profit increased to $21.2m from $4.0m, driven by cement demand and Korcem sales.

• Net profit attributable to shareholders reached S$14.9m versus S$0.9m; expansion and resilient Central Asian operations supported results.

• Operating cash flow was $40.1m; cash and cash equivalents were $9.9m at period-end.

Financial highlights

• Gross profit rose to $59.3m from $34.0m; gross margin improved to 36% from 31%, supported by higher selling prices and strong Kazakhstan demand.

• Operating income was $36.8m versus $8.1m; profit before tax was $31.6m versus $10.1m, and profit after tax was $21.2m versus $4.0m.

• Adjusted EBITDA rose 96% to S$45.9m from S$23.4m; EPS was 0.26 cents versus 0.02 cents.

• Other income was $5.2m versus $1.0m, primarily reflecting net FX gains; other expenses fell to $4.2m from $8.5m, partly offset by a $2.9m impairment.

• Finance costs increased to $8.5m from $4.7m; net finance costs were $5.1m versus net finance income of $2.0m.

Outlook and guidance

• Korcem’s strong 1H sales momentum is expected to continue through year-end, barring unforeseen circumstances; exports to Kyrgyzstan are underway.

• Central Asian infrastructure investment and positive economic outlooks support cement demand; 2025 GDP growth is projected at 6.7% in Tajikistan and 4.9% in Kazakhstan.

• Aluminium operations are non-core and being evaluated, with resources progressively shifting to cement; the aluminium order book was $3.1m at 30 June 2025, with projects expected to complete over three years.