East African Portland Cement Company (EAPCC) has issued a profit warning, citing financial challenges including rising input costs and production issues. The firm reported a 30.7% widening of its half-year net loss to Sh1.26 billion, with board members indicating full-year earnings could drop by over 25% compared to the previous financial year.
The company's statement noted that the expected decline stems from increased input prices, a sluggish market, and production difficulties linked to limited working capital. EAPCC's revenues fell 55% to Sh1.37 billion in the six months ending December 2018, down from Sh3.06 billion in the prior period.
This decline contributed to a 66% rise in operating losses to Sh1.4 billion. The board emphasized that the projected performance for June 2019 would not match the Sh7.79 billion profit recorded in the previous financial year, which included a Sh11.34 billion gain from land revaluation.
