Bamburi profit dips 67pc to Sh1.9bn on lower sales
Bamburi Cement has announced a 67 percent drop in profit on the back of lower cement sales in 2017.
During the period, Bamburi’s profit dropped from Sh5.9 billion to Sh1.9 billion on lower revenue.
Bamburi posted revenue of Sh36 billion down from Sh38.2 billion a year earlier, attributed to the long electioneering period as well as limited access to credit during the period.
2017 saw a number of infrastructure projects put on hold which affected cement makers across the country.
Bamburi was also impacted by increased expenditure spend as it seeks to expand its production facilities in Kenya and Uganda.
Bamburi says it expects to bounce back in 2018 on increased cement orders.
“While the 2017 results reflect a mixed performance in a challenging market environment, we remain positive that the market conditions in both countries will continually improve and rebound in line with the projected growth in both domestic and regional markets,” Bamburi chairman John Simba said in a statement.
Bamburi expects to commission the new production plants mid this year.
Bamburi’s finance costs during the year under review increased Sh263 million.
The cement maker’s assets increased to Sh33.2 billion following a revaluation on land, plant and equipment, which is conducted every five years.
The board has proposed a final dividend of Sh1.50 adding to the Sh2.50 that was paid out to shareholders in October last year.
Mr Simba said the cement maker would focus on innovation, cost cutting and market growth in 2018 to boost its profitability.
“Our focus will continue to be providing innovative value adding construction propositions to our customers, prudent cost management, and agility to anticipate and respond to external factors in the region,” he said.
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