Bamburi posts higher earnings

Bamburi posts higher earnings
Published: 16 February 2007

Keny’s leading cement manufacturing company, Bamburi Cement has announced it earned Shs95 billion in pre-tax profits for the financial year ended December 31, indicating a 22 per cent increase in profitability compared Shs77.5 billion the previous year. The company’s turnover grew by 10 per cent to stand at Sh417.5 billion up from Sh375 billion the previous year.

The boost in revenues, was partly spurred by high sales in export markets in the Great Lakes region where a 30 per cent growth was registered, according a press release.

Company Chairman Richard Kemoli said despite a harsh cost environment, the company was able to deliver positive results and value to shareholders buoyed by strong demand across all markets in East Africa and a better focus on new export markets, particularly Tanzania which has traditionally been local product dominated.

"We faced an increasingly challenging cost environment with rapid increases in power tariffs (especially in Uganda), fuel/energy, transport and raw materials prices," said Mr Kemoli. Mr Kemoli also said market growth, while remaining positive this year, was partly affected by the adverse impact of the drought experienced in Kenya in the first half of last year. This he said, reduced disposable incomes and generally affected the productivity of key sectors of the East African economies.

The exports markets, registered the highest growth, especially sales to Tanzania-mainly the northern part, Southern Sudan, DRC, Rwanda and Burundi. Inland Africa exports increased by 30 percent with higher volumes realised in all markets, said Managing Director Michel Puchercos , adding that the reorganisation of the sales and marketing teams also delivered better

impetus in terms of exploiting new market opportunities while cementing leadership in traditional markets.

Last year, Bamburi Cement invested more than Shs17.5 billion in plant and internal infrastructure upgrading in both Kenya and Uganda and paid a total of Shs30 billion worth of taxes in both countries.