This archive report was first published on 8 May 2020.
On May 8, 2020, Bamburi Cement Limited reported a net loss of KSh 359 Million in 2019, a sharp decline from the KSh 572 Million net profit booked in 2018.
The company attributed the decline to the suspension of its operations in Rwanda and the interruption in the construction of the Standard Gauge Railway (SGR) line phase (II), which negatively impacted its revenues.
Revenues fell to KSh 36.8 Billion in 2019, down from KSh 37.3 Billion in 2018, resulting in a 74% drop in Total Comprehensive Income to KSh 350 Million.
According to Bamburi Cement, the absence of investment deduction allowance benefits for Hima Cement in 2019, combined with the suspension of Rwanda operations, led to a higher tax charge in 2019.
The company's non-current assets stood at KSh 36.9 Billion in 2019, compared to KSh 37.9 Billion in 2018.
Despite expecting growth in the East African cement markets, Bamburi Cement warned that the COVID-19 pandemic would affect demand for cement in Uganda and Kenya, its key markets.
Established in 1951, Bamburi Cement Limited has a significant stake in Hima Cement Ltd, with a clinker capacity of 1 million tons and cement production capacity of 2.5 million tonnes.
