Bamburi Cement has posted a 13 percent decline in pre-tax profit to 3.7 billion shillings for the six months ended June this year down from 4.2 billion shillings last year despite a 17 percent growth in revenue.
The largest manufacturer of cement in East Africa said in an official release document that loan financing costs and foreign exchange losses caused the dip in half-year profits, in addition to the volatility of global fuel prices which increased costs of transport, raw materials and power.
Despite slower market growth, Bamburi’s revenue increased to 19.2 billion shillings from 16.4 billion shillings for the six months to June last year. This was based on higher domestic and exports sales which increased 5.4 and 32.2 percent respectively.
Looking into the future, Bamburi said that its main focus will be on sustaining revenue growth by boosting customer service through recent expansions of its Mombasa and Nairobi plants aimed in this direction. Alongside Athi River Mining and East African Portland Cement, Bamburi is a market leader in the sale of cement in Kenya, and a subsidiary of Lafarge which is French world leader in building materials.
Bamburi shares are listed on the Nairobi Securities Exchange, and last week climbed to their highest price in more than one year at KES 185 per share. The company’s Board of Directors approved a dividend of 2 shillings per share to be paid next month.