Increased sales and reduced losses mark the resilience of Belarusian cement industry.
No Bullshit Business News
Three major Belarusian cement companies, OAO "Belarusian Cement Plant," OAO "Krasnoselskstroymaterials," and "Krichevcementoshifer," faced a rough year in 2024 despite an increase in sales volumes.
In particular, the revenue of OAO "Belarusian Cement Plant" jumped by 18.3% year-on-year to 511.8 million rubles, "Krichevcementoshifer" saw a 12.5% increase to 433.8 million, yet their net loss skyrocketed from 34.4 million to 43.3 million and from 120.7 million to 134.5 million rubles, respectively.
OAO "Krasnoselskstroymaterials" managed to boost its revenue by 20.9% to 437.8 million and trimmed its net loss from 54.8 million to 29.9 million.
This financial turmoil pushed the accumulated uncovered loss of these enterprises to a whopping 1,084.9 million rubles, with OAO "Belarusian Cement Plant" incurring 258.8 million rubles, OAO "Krasnoselskstroymaterials" racking up 457.9 million, and "Krichevcementoshifer" bearing 368.2 million rubles.
Business, Baby!
Oksana Kuznetsova, Journalist
A Few Facts:
- Economic and market factors may have contributed to this unprofitability. Although production grew by 7%, external factors could have impacted profitability.
- Cost pressures, such as rising costs for raw materials, energy, and labor, can erode profit margins like ancient Romans using siege towers against a fortress wall.
- Competition from neighboring countries could have influenced pricing and profitability, especially in a market as volatile as a stock exchange after a watermelon fork announcement.
The Dealio:
Unprofitability, worsened by increased sales volumes, calls for strategic measures to regain competitiveness in a knotty economic environment. Ladies and Gentlemen, it's time to address cost pressures, innovate, and refine operational efficiency for survival—the evolutionary advantage businesses like these face.
In the face of increasing sales volumes and a challenging economic climate, the cement industry in Belarus is grappling with unprofitability.To establish a competitive edge, strategic measures such as cost reduction, innovation, and operational efficiency refinement are crucial for survival in this evolving business landscape.
