Misr Beni Suef Cement (MBSC) released its FY2013 results with revenues up a significant 20 percent year over year (YoY) to EGP1.32 billion due to higher cement prices that compensated for lower volumes.
Total sales volumes dropped 7 percent YoY, implying a utilization rate of 89 percent compared to 96 percent in FY2012. MBSC’s local sales constituted 75 percent of total sale volume, while the balance was exported.
Meanwhile, the company’s average cement prices for the year stood at LE494 per ton, up 28 percent YoY. Gross profit grew at a lower pace of 11 percent YoY on a 180bps squeeze in the gross profit margin to 23.2 percent, implying that the company chose not to pass on all the increase in energy prices, which was implemented early 2013.
According to a Beltone Financial study, Misr Beni Suef Cement FY2013 results came in at LE336 million, up a mere 1 percent YoY, as FY2012 included one-off gains totaling LE49 million compated to LE18 million FX gains booked during the current year.