Profit soars, deficits decrease: Resilience of Belarusian cement industry seemingly intact
Cement Producers Struggle to Turn a Profit Amid Increased Sales
Despite a notable boost in sales volumes for Belarusian cement manufacturers in 2024, the industry remained unprofitable. For OAO "Belarusian Cement Plant" and "Krichevcementoshifer," revenue grew by 18.3% and 12.5% respectively, but net losses widened. OAO "Krasnoselskstroyaterials," on the other hand, managed to increase its revenue by 20.9% while narrowing its loss.
The accumulated uncovered loss for the three companies amounted to 1,084.9 million rubles. OAO "Krasnoselskstroyaterials" posted a net loss of 29.9 million, an improvement from the previous year's 54.8 million. In contrast, net losses for Belarusian Cement Plant and "Krichevcementoshifer" increased to 43.3 million and 134.5 million rubles, respectively.
The Hidden Story Behind the Cement Trends
Global cement industries, including Belarus, face escalating energy, fuel, and logistics expenses. Belarusian producers, fed by exports to Russia, are subject to additional transportation and geopolitical costs. Furthermore, labor shortages, as indicated by Belarus's recruitment of Pakistani workers for megaprojects, could boost operational expenses if wage competition intensifies.
Domestically, there's a high concentration of sales among the three Belarusian cement plants, potentially creating risks if local demand stagnates. On the other hand, export-oriented expansion leaves revenue susceptible to changes in regional demand and trade policies. The global cement market, projected to have slow growth, raises questions about Belarusian producers' output and its sustainable demand.
Addressing the Challenges Ahead
Modernization plans, requiring significant capital expenditure, may strain margins unless offset by efficiency gains. By contrast, India's Dalmia Bharat demonstrated profitability improvements through cost-cutting measures, such as reducing fuel expenses by 7.2% year-on-year.
In essence, while direct evidence of unprofitability may not be apparent, Belarusian cement producers confront industry-wide challenges that could pinch margins if unchecked. Addressing cost pressures, maintaining market dynamics, and fostering operational efficiency are crucial for strengthening the industry's financial footing.
Sources:[1] [Belarussian Cement Report 2025][2] [Cement News][3] [Belarussian Labor Migration][4] [Global Cement Market Growth Projections][5] [Dalmia Bharat Q1 Earnings Press Release]
- The Belarusian companies OAO "Belarusian Cement Plant" and "Krichevcementoshifer", despite experiencing a 18.3% and 12.5% increase in revenue respectively in the year 2024, saw their net losses widen, hinting at the ongoing struggles in the cement industry.
- Global challenges, such as escalating energy, fuel, and logistics expenses, along with geopolitical issues for Belarusian producers exporting to Russia, have contributed to the unprofitability of the industry.
- Domestically, the high concentration of sales among the three main Belarusian cement plants poses a risk if local demand stagnates, while export-oriented expansion leaves revenue susceptible to changes in regional demand and trade policies.
- To combat these challenges, Belarusian cement producers must address cost pressures, maintain market dynamics, and foster operational efficiency, as demonstrated by India's Dalmia Bharat through cost-cutting measures such as reducing fuel expenses.
