NAIROBI, Kenya, Apr 21- Bamburi Cement has announced a Sh1.1 billion profit for the financial year ended December 2020.
The results tripled from Sh359 million, the cement manufacturer had posted in a similar period, the year before.
The group through a statement has attributed the positive results to the cost-cutting measures it undertook during the outbreak of the coronavirus disease.
“In a bid to prepare the business for the anticipated ride ahead, the Bamburi Group adopted the Health, Cost and Cash plan, and preserving cash,” Bamburi writes.
The company’s sales however declined by 5.1 percent to stand at Sh34.8 billion.
“The group also realized lower average selling prices driven in equal measure by both change in product mix and pure price decline due to competitive pressure fueled by overcapacity in the cement market,” reads the statement.
Total operating costs were also down by 7percent to record Sh33.1 billion in the period under review.
The group hopes that despite the uncertainty in relation to the pandemic, both the Kenya and Uganda government will help contain the pandemic and promote a positive economic environment supportive of business growth.
“We face an uncertain 2021 with the confidence that we can always draw from the foundation that we have laid in 2020,” said Bamburi Cement Group Managing Director Seddiq Hassani.
The board recommended a dividend payout of Sh3 per share, which is to be paid on July 15, 2021.