Portland Cement issues profit warning

East African Portland Cement (EAPCC) has become the 19^th listed firm to issue a profit warning.

This comes as the company announced a Ksh 65.3 million shillings half-year loss with no expectation of the performance increasing by the end of its financial year in June.

High finance costs and foreign exchange dragged the cement maker’s performance despite registering 12 percent growth in revenue to KSh 4.6 billion shillings.

“The forex loss together with the finance costs and tax credit amounted to Ksh 235 million compared to an overall net gain of Ksh 314 million in the previous period thereby resulting to an after tax loss of Ksh 531 million,” Sheila Kahuki, EAPCC company secretary in a statement.

Financing costs increased by 50 percent to Ksh 279 million shillings while forex losses grew to Ksh 188 million shillings.

Portland has foreign currency-denominated debt and with a weakening shilling, sees the company incur higher repayment costs.

Other firms that expect their earnings to be 25 percent less than it was in the previous financial year include TPS Eastern Africa (Serena), East African Cables, BOC Kenya, Uchumi Supermarkets and Mumias.