Bamburi Cement announced its half year group results with a 22 per cent growth in operating profit from Sh1.6bn to Sh1.9bn during the past six months. Turnover for the year rose by 12 per cent to Sh7.9bn with the group’s total interim dividend pay out amounting to Sh1.45bn.
Releasing the results, the group’s chairman, Richard Kemoli said the impressive performance was achieved despite difficult operating environment.
The challenges include acute power shortage, ever-rising fuel prices and transport costs.
He said that marked growth was below expectation and he attributed this to adverse impact of drought on disposable incomes and the overall effect on the East African economies. The chairman however said that in order to meet the company’s ambitions, the management increased focus on export opportunities especially in the Great Lake regions .
Kemoli said compared to last year, the estimated growth in domestic market demand in Kenya and Uganda was eight and six per cent respectively.
He said the market remained stable in Kenya while in Uganda, the company continued to face aggressive competition. The chairman further said that supplies from Kenya to Uganda remained strong to meet market demand, adding that the group strengthened its focus on new sales initiatives in Tanzania and South Sudan.
The Group’s Managing Director Michael Puchercos said that exports outside East Africa increased by 22 per cent with higher volumes realised in all markets.
He said that the dividend declared brings the total of the two interim dividends to 80 per cent per ordinary share ( Sh 4 per share) amounting to Sh1.4bn.