The financial results of EGX-listed cement producers weakened in Q2 2019, extending their Q1 2019 downtrend. Their financials were hit by (1) continued pressure on prices due to persisting oversupply, (2) the consequent price competition, and (3) little export ability, which was dampened by stiff competition, as explained in our story titled Cement Exports Need to Find Home in Africa, published in The Daily Beam on 17 July 2019. Although cement demand (local dispatch and exports) edged up 4% y/y to 11.8mn tons in Q2 2019, slightly higher y/y prices did not boost revenues that much. According to most producers, the blended average price of EGP904/ton in Q2 2019 (+4% y/y) stands at a considerable discount to what they believe would make them sustainably profitable. In Today’s Story, we take a closer look into the performance of six of the seven EGX-listed cement producers as the remaining company, South Valley Cement (SVCE), is yet to report its Q2 2019 results.
For more details, please read the full report below.