Bamburi says H1 pretax profit jumps 55 per cent

Bamburi says H1 pretax profit jumps 55 per cent
Published: 01 September 2009

Kenya’s biggest cement producer, Bamburi  reported a 55 per cent jump in first-half pretax profit to KES4.5bn (US$59m), as the economy recovered from last year’s violence.

Turnover was up 42 per cent to KES16.2bn driven by strong domestic demand and exports to other African countries, the Lafarge subsidiary said on Monday.

"The improvement in the results shows a remarkable recovery in the domestic market from the effects of post-election violence during the same period last year," Bamburi said.

Bamburi saw a 49 per cent jump in operating profit to KES4.3bn although production costs increased 52 perc ent, mainly on energy costs and depreciation of local currencies.

Earnings per share climbed 55 per cent to KES8.19.

"The strong results...demonstrates the group’s resilience in the difficult economic conditions spurred by global economic downturn, increased competition and the negative impact of the fluctuating rate of local currencies against major hard currencies," chairman Richard Kemoli said.

An ongoing drought in Kenya is hitting key sectors of Kenya’s agriculture-based economy and the effects are expected to extend to the construction industry, Bamburi said.