Enhanced Investments - Financial Portal

Unaudited condensed consolidated interim financial results for the six months ended 30 September 2022

Published: 2022-11-14 16:05:19 ET

Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 2005/003306/06)
JSE share code: SEP
ISIN: ZAE000138459
(“SepHold” or the “Company”)




 Unaudited condensed consolidated interim financial results for the six months ended 30 September 2022
 SepHold is pleased to report on the group’s interim financial results for the six months ended 30 September
 2022. SepHold, Métier Mixed Concrete (Pty) Ltd (“Métier” or “the subsidiary”) and Dangote Cement SA (Pty) Ltd
 (“SepCem” or “the associate”) are collectively referred to as the group.
 Salient points
 Group¹
     ▪ Group consolidated revenue: R523,6 million [H1 2022: R411,8 million]
     ▪ Net profit after tax: R26,7 million [H1 2022 net profit after tax: R17,8 million]
     ▪ Basic earnings per share: 10.51 cents [H1 2022 basic profit per share: 6.98 cents]
     ▪ Headline earnings per share: 11.26 cents [H1 2022 headline profit per share: 7.03 cents]
     ▪ Net asset value per share: 461.35 cents [H1 2022: 440.24 cents*]

 Métier¹

     ▪ EBITDA margin: 11.3% at R59,2 million [H1 2022: 10.8% at R44,6 million]
     ▪ EBIT margin: 8.4% at R43,8 million [H1 2022: 7.6% at R31,4 million]
     ▪ Profit after tax: R29,5 million [H1 2022 profit after tax: R20,1 million]

 SepCem²
     ▪ Sales revenue: R1,16 billion [H1 2021: R1,19 billion]
     ▪ EBITDA margin: 12.6% at R146,9 million [H1 2021: 12.4 % at R148,8 million]
     ▪ EBIT margin: 5.3% at R61,8 million [H1 2021: 5.7% at R67,7 million]
     ▪ Net profit after tax: R10,5 million [H1 2021 net profit after tax: R7,7 million]
     ▪ SepCem 36% equity accounted profit: R3,8 million [H1 2022 equity accounted profit: R2,8 million]

 No dividends were declared or paid during the six months ended 30 September 2022.

 *Restated due to prior year error reported in the FY 2022 year-end results. Refer to page 11 of the full announcement for further details

 ¹Figures refer to the interim period ended 30 September 2022 for the financial year ending 31 March 2023, and H1 2022 refers to the six
 months ended 30 September 2021 for the financial year ended 31 March 2022.
 ²SepCem has a December year-end as a subsidiary of Dangote Cement PLC. Therefore, the figures refer to the six months ended 30 June
 2022, and H1 2021 refers to the figures for the interim ended 30 June 2021.
Remarking on the results, Chief Executive Officer, Neil Crafford-Lazarus said,
“Despite the economic headwinds of increasing input costs and weak demand, Métier performed exceptionally
well, achieving an increase in EBITDA of 33% and a 47% increase in net profit. The subsidiary focused on
increasing volumes and pricing in all its markets.

Unfortunately, the same cannot be said for SepCem, whose major market predominantly consists of retail
customers who purchase bagged cement from building materials merchants. As reflected by the StatsSA
hardware retail sales data and feedback from the merchants, the demand for building materials has been
declining for close to a year. This decrease is largely considered the normalisation of demand following the spike
experienced during the pandemic. The interest rate increase cycle from the second half of CY 2021 to date and
price increases in essential goods have significantly contributed to the decrease in retail demand.

As a group, deleveraging has been the most important goal in strengthening our balance sheets and enhancing
profitability. Improving cost efficiencies and innovative sales strategies have been the key pillars of the group’s
success. SepCem and Métier continue demonstrating resilience and agility to maintain market share in their
respective sectors. Finally, we are confident that we are well-positioned to survive the current constrained trading
environment and remain cautiously optimistic.”

Investor presentation webcast and conference call
The results webcast and conference call for investors will be at 10:00hs SAST on 16 November 2022. Pre-
registration is required and can be done using the following links to obtain the dial-in details: Sephaku Holdings
FY 2023 Interim Results webcast link. and Sephaku Holdings FY 2023 Interim Results conference call pre-
registration link.
The results presentation will be available on the Company website from 09:45hs SAST on 16 November 2022 at
the following link: https://sephakuholdings.com/investor-centre/presentations/

Replay dial-in details
South Africa      010 500 4108
International     +27 10 500 4108
Access code       43307#

Forward-looking statements
Any forward-looking information is the board of directors’ responsibility and has not been reviewed or reported
on by the Company’s external auditors.
Directors’ statement
The contents of this short-form announcement are the responsibility of the SepHold board of directors and have
not been reviewed or reported on by the Company’s external auditors.

Shareholders are advised that this short-form announcement represents a summary of the information
contained in the full announcement, published on the Stock Exchange News Service (SENS) at
https://senspdf.jse.co.za/documents/2022/jse/isse/SEP/Int2022.pdf and on SepHold’s website:
www.sephakuholdings.com on 14 November 2022.
The full announcement is available for inspection at no charge during normal business hours at SepHold’s
registered office. Copies of the full announcement may also be requested by email at info@sephold.co.za. Any
investment decisions by investors and/or shareholders should be based on consideration of the full
announcement, and shareholders are encouraged to review the full announcement, which is available for
viewing on SENS and on the Company’s, website set out above.

Centurion
14 November 2022
__________________________________________________________________________________
Enquiries contact:
Sakhile Ndlovu
Investor Relations Officer
info@sephold.co.za
012 648 6300

Sponsor to Sephaku Holdings: Questco Corporate Advisory (Pty) Ltd

About Sephaku Holdings Limited
Sephaku Holdings Limited is a building and construction materials company with a portfolio of investments in the cement
sector in South Africa. The company's core investments are a 36% stake in Dangote Cement SA (Pty) Ltd and 100% in Métier
Mixed Concrete (Pty) Ltd. SepHold's strategy is to generate growth and realise value for shareholders through the production
of cement and ready mixed concrete in Southern Africa.
www.sephakuholdings.com

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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.