NAIROBI, Kenya Feb 23 – Bamburi Cement has announced an increase in turnover by 28 percent to Sh35.9 billion.
This, the firm says, was driven by increased domestic and export volumes from the new line in Uganda and optimisation of existing capacity across all plants. The year was also characterised by stable domestic prices and better export prices, due to the appreciation of the US dollar.
Operating profit grew by nine percent to Sh7.9 billion despite a difficult external cost environment brought about by high global fuel prices, increase in power costs, high inflation, local currency depreciation and increased competition.
Pre-tax profit increased by 12 percent to Sh8.5 billion shored up by gains on cash deposits and exchange gains on foreign currency cash balances, partially eroded by higher loan financing costs in Uganda, on account of high interest rate regime in the second half of the year.
The group continues to focus on working capital management to optimise its cash position.
This year, the firm says it remains committed to contributing to the growth of the East Africa economy with investments in Uganda as well as the recent expansion of its business.
The directors recommend payment of a final dividend of Sh8 per ordinary share, up from Sh7 in 2010 which is subject to approval by shareholders at the Annual General Meeting.
The final dividend, when added to the interim dividend already paid in October last year, brings the total dividend for the year to Sh3.6 billion up from Sh3 billion the previous year.
Subject to approval by shareholders, the final dividend for 2011 will be paid in June this year.
They also announced the resignation of John Stull as a director of the company with immediate effect.