NAIROBI, Kenya, Dec 3 – Bamburi Cement has issued a profit warning saying that they expect their 2018 full year earnings to decrease by more than 25 per cent.
In a statement through its company secretary, the firm attributes the expected decrease on difficult market conditions as well as escalating international energy prices in both Kenya and Uganda.
The company has also cited increasing power costs in Kenya as well as additional provisions, mainly receivables, in Uganda as causes of the decrease.
“This announcement is based solely on the company’s preliminary assessment of the group’s expected financial results of the year 2018,” reads the statement.
The company’s results will be announced in the first quarter of 2019.
It has been a tough two financial years for the cement maker which posted reduced profits for the year 2017. The company’s profits dropped by Sh3.9 billion to Sh1.97 billion owing to lower sales in the Kenyan market.
At the time, the company blamed the electioneering, the rate cap and drought for its reduced performance.