This archive report was first published on 24 August 2019.
On August 24, 2019, Bamburi Cement released its unaudited group results for the half year period ended June 30, 2019. The company's pretax profit took a significant hit, declining to KSh 23 million from KSh 722 million in the first half of 2018.
The decline in pretax profits was largely attributed to an increase in finance costs associated with a long-term loan taken in Uganda to finance capacity expansion, as well as the impairment of assets in Rwanda.
Despite the decline, the company posted an operating profit of KSh 332 million, a significant decrease from the KSh 1.2 billion operating profit recorded in the first half of 2018. This was largely due to a higher depreciation charge following the commissioning of additional capacity expansion projects in both Kenya and Uganda.
However, the net comprehensive income after tax was KSh 0.4 billion, a higher value than the previous period, which was KSh 0.3 billion. This was largely due to the capacity expansion project commissioned in 2018, which led to an increase in earnings per share to KSh 1.61 from KSh 1.47 in 2018.
Looking ahead, Bamburi Cement expects its profitability in the second half of 2019 to slowly recover due to top-line growth and cost management initiatives. The company will continue to execute its 'Building for Growth' agenda while prioritizing cost optimization.
