Bamburi Cement posts Ksh8.2b pretax profit in 2016

By Nicholas Nduati

Bamburi Cement recorded a slight drop in pretax profit for the year ended December 2016 to post 8.2 billion shillings down from the 8.4 billion shillings it posted the previous year.

The dip is on account of lower currency gains accrued from holding of large foreign cash balances brought about by an instability in the currency environment.

The Cement producer however recorded an 8% rise in operating profits to 7.8 billion shillings up from 7.2 billion shillings in 2015.

A final dividend payout of six shillings per share was also declared.

A competitive operating environment, as well as an increase in taxes is eating into profits of cement manufacturing companies.

This was no different for Bamburi Cement which for the year ended 31st December 2016 turnover was 1 billion shillings lower at 38 billion shillings down from 39 billion shillings in 2015.

Overall, there was a marginal reduction in volumes into inland Africa export markets and intense competition particularly in the individual home builder segment impacting prices in some markets.

This was offset by higher volumes in the infrastructure and contractor segment in the key markets of Kenya, Uganda and Rwanda.

The Group generated cash from operations of 6.8 billion shillings which was slightly lower than the cash generated in the previous year of 8.3 billion shillings arising from the increased tax payments to the Exchequer following the strong performance in 2015, in addition to an increased working capital.

Pretax profits also fell to 8.2 billion shillings from the 8.4 billion shillings posted the previous year.

The dip is on account of lower currency gains arising from holding of large foreign cash balances due to instability in the currency environment.

An 8% increase in operating profits to 7.8 billion shillings was however realized up from 7.2 billion shillings in 2015.

Going forward, the group plans to focus on maintaining a superior offer to the market through innovation and first-rate customer service, while leveraging on its human capital, technical resources and innovative spirit to deliver another year of strong performance.

A change in the company’s management has also seen Alice Owuor, Dr Helen Gichohi and Rita Kavashe appointed as new Directors with immediate effect.

Payment of a final dividend of 6 shillings per share amounting to 2.178 billion shillings was also announced.