This archive report was first published on 8 May 2020.
May 8, 2020 - Bamburi Cement has achieved a 17% profit growth for the full year ended December 2019, despite navigating challenging economic conditions in the region.
The company's net profit grew from Sh 0.62 billion in 2018 to Sh 0.73 billion in 2019, a significant increase.
Group Managing Director Seddiq Hassani attributed the profitability to the cost-cutting and optimization initiative under the firm's Building for Growth strategy.
Despite the regional economic challenges, including the inability to access the Rwanda market, the Ugandan subsidiary, Hima Cement Ltd, recorded improved domestic growth.
However, the Kenyan subsidiary's overall sales were impacted by the shift of volumes previously exported to Uganda from Bamburi Cement, following the commissioning of Hima Cement's capacity expansion project in 2018.
“Despite market challenges, including the absence of sales to Rwanda through Hima, the shelving of major infrastructural projects such as Phase 2B of the Standard Gauge Railway (SGR) project in Kenya, contraction of the Kenyan market and price erosion fueled by aggressive competitive pressure; both Bamburi Cement and Hima Cement grew share while sustaining respective market leadership,” Hassani said.
The Group's Operating Profit grew by 44% to KShs 1,117 million as compared to KShs 775 million in 2018, despite the decline in the Kenya cement market, lower selling prices, and the impairment of Rwanda assets.
Group Chairman John Simba assured that the firm remains cautious in the wake of the COVID-19 pandemic and will continue to execute its Strategy 2022 agenda, which focuses on customers, cost optimization, people, financial strength, and sustainability.
