Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
/COURTESY

Kenya

Bamburi’s net profit grows to Sh730mn Despite tough Economic Conditions

NAIROBI, Kenya May 8 –  Bamburi Cement group has recorded a 17 percent profit growth for the full year ended December 2019 despite experiencing challenging economic conditions in the region including the inability to access the Rwanda market.

The profit grew from Sh 0.62 billion(620 million) in 2018 to 0.73(730 million) recorded in 2019.

In a statement, Group Managing Director Seddiq  Hassani attributed the profitability to the cost cutting and optimization initiative under the firm’s Building for Growth strategy.

Hassani said the cement manufacturer remained resilient despite the challenging economic conditions witnessed in the various markets and the wider regional economy.

The firm further noted that the Ugandan subsidiary, Hima Cement Ltd recorded improved domestic growth despite  overall sales being negatively impacted by the inability to access the Rwanda market

The overall sales of the Kenyan subsidiary, the firm said, was also impacted by the shift of volumes previously exported to Uganda from Bamburi Cement, following the commissioning of Hima Cement 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. The Groups turnover at KShs 36.8 billion was comparable to 2018 performance, an indication of our underlying competitive resilience.” He said.

The increase in finance cost relates to the full year impact of interest on debt to finance the capacity expansion project commissioned by Hima Cement Ltd in 2018.

Despite the decline in the Kenya cement market, lower selling prices and the impairment of Rwanda assets, the Group’s Operating Profit still grew by 44 percent to KShs 1,117million as compared to KShs 775million in 2018.

Advertisement. Scroll to continue reading.

In the wake of COVID 19 pandemic, Group Chairman John Simba said the firm remains cautious further assuring that it will continue to execute its Strategy 2022 agenda

The 2022 agenda is focused on our customers to drive topline growth, cost optimization, people, financial strength and sustainability.

“Our renewed focus will be placed on optimizing our production costs, logistics costs for both inbound and outbound transport flows, and to reduce the cost of our raw materials and cost of service to customers.’ He said

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...