Portland Cement’s half year profits rise
East African Portland Cement announced its profit before tax had increased by 138 per cent during the last six months.
The company said pre-tax profit had increased from Sh360 million to Sh857 million, while turnover shot up from Sh2.5 billion to Sh3.1 billion.
Profitability was mainly driven by increased cement demand which grew by an estimated 15 per cent due to a vibrant building and construction industry.
"This contributed significantly to the growth of revenue by 20 per cent," Zakayo Ole Mapelu, the company’s managing director saidNet profit increased from Sh252 million to Sh563 million.
Improved plant efficiency, cost management and competitive sourcing of raw materials also shored up profit.
The firm’s chairman, Ben Ndeta, urged the Government to initiate steps to retire the Sh4 billion Yen-dominated loan that has over the years affected the company’s profitability.
He said that the company was also worried about the decision by the Government to stop it from putting up a new mill (see daily report)
"We are on the verge of exhausting our capacity that is why we were keen to install a new close circuit milling plant to double our production capacity."