Kenya’s Bamburi Cement pre-tax profits up 42 per cent

Kenya’s Bamburi Cement pre-tax profits up 42 per cent
Published: 27 February 2008

Kenya’s Bamburi Cement Group, majority owned by Lafarge, posted a 42 per cent increase in pre-tax profits to KES5.4bn for 2007 on Tuesday.

Turnover rose 34 per cent to KES22bn on a 15 per cent increase in cement sales that hit 2Mt during the year, Bamburi said in a statement.

"Despite the challenging business environment across the region, the group recorded strong sales across all markets stimulated by high Individual Home Builder demand and growth in the contractor segment," said Chairman Richard Kemoli.

Bamburi’s business in neighbouring Uganda grew strongly due to infrastructure projects ahead of a Commonwealth heads of government meeting in November, the statement said.

The company expects to invest KES7bn for a new production line that will double capacity in its Uganda subsidiary, Hima Cement, by 2010.

The group expects robust growth in 2008 pegged on construction and infrastructural projects in the region but warned that uncertainty created by Kenya’s political crisis would hurt business.

"An unstable environment in Kenya would however have adverse ramifications, in particular dampened demand and cost pressure," the statement said.