Why is this important
The reduction in losses indicates the stabilization of operations of the country’s largest cement producer. However, the sharp increase in interest expenses and the credit burden puts the company’s financial stability under high interest rates.
What happened
- Net loss for 9 months decreased to 16 billion soums (compared to 9.9 billion for the same period in 2024);
- In the second quarter, the company recorded a loss of 70.1 billion soums, in the first — 64.2 billion;
- Interest expenses increased more than threefold — from 27.8 billion to 93.7 billion soums;
- Short-term bank loans reached 633.9 billion soums (+29.3% year-on-year);
- Short-term loans decreased by 54.5% to 19.1 billion soums.
Context
Kyzylkumcement is one of the largest cement producers in Uzbekistan, providing a significant share of the domestic market. The company suffered losses amid rising production costs, high energy costs, and interest rates.
The decrease in losses in the third quarter may be related to the seasonal increase in demand for construction materials and improved operational efficiency. However, a 29% increase in the loan portfolio and a threefold increase in interest expenses create serious pressure on financial results.
A 54.5% decrease in short-term loans may indicate a transition to bank financing or the repayment of part of the obligations. If the company maintains high interest rates, it will need to either increase revenue or reduce debt burden to achieve profitability.
