ARM anticipates higher earnings growth

Kenya-based ARM Cement expects a slight acceleration in earnings this year as new capacity in Tanzania boosts volumes, its chief executive has said.

Referring to his expectations for profitability and sales, Pradeep Paunrana told Reuters: “This year we are looking at increasing our top line and bottom line by 35 per cent over last year and next year we expect a similar growth.”

The company commissioned a 0.75Mta grinding plant in the Tanzanian capital of Dar es Salaam a year ago, adding to the company’s exisiting 1Mta capacity in Kenya. Another 1.5Mta plant will be launched in 2014 in Tanga, Tanzania. Once this second unit is up and running, ARM is expected to capture a 20 per cent share of the market with exports estimated to account for 25 per cent of sales.

ARM now plans to invest US$15-20m in its cement operations in Rwanda to help double its market share. In December 2011, ARM acquired a controlling stake in the 0.1Mta Kigali Cement Company as part of its ongoing regional expansion.