NAIROBI, Kenya, Mar 27 – Bamburi Cement has posted a 66 percent drop in their net profit to Sh1.97 billion for the year to December 2017 compared to Sh5.8 billion previous year.
Management attributes the drop to lower sales in Kenya following the prolonged election cycle, tightened liquidity, and delayed projects
Lower sales in Kenya led to Sh2 billion decrease in Group turnover to hit Sh36 billion as Uganda sales remained flat.
Operating profit also dropped by 50 percent to Sh4.1 billion due to lower revenues and high energy prices.
“The market is expected to rebound in line with the projected growth in both domestic and regional markets in 2018,” the firm stated.
Key risks for the firm in 2018 are higher coal and power prices.
“The group continues to optimize on its administrative costs, costs to serve and its innovative product mix,” the group states.
Total dividend for the year is at Sh4 per ordinary share, compared to Sh12 in 2016.