EA Portland After-Tax Profit Rises to Sh727.6m

EA Portland After-Tax Profit Rises to Sh727.6m
19 February 2007

Cement maker, East African Portland Cement Company (EAPCC), has posted an after tax profit of Sh727.6 million in the six months period ended December 31 last year. 
This was a 23 per cent improvement on Sh593.7 million recorded in a similar period in 2005.
EAPCC’s financial performance during the review period was bolstered by favourable prices and growth in cement sales, it said in the reports released on Friday. 
Turnover was up from Sh3.1 billion in 2005 to Sh3.4 billion last year, representing a 10 per cent growth. 
"This [growth] is attributable to favourable prices and growth in cement sales with the expansion of the building and construction sector especially in the local market," said the statement by company secretary, J LG Maonga. 
Profit before deductions of operating expenses increased by six percent while operating profit rose to Sh592 million from Sh458 million. 
"The increase in operating profit to Sh592 million was due to good performance and the decrease in selling expenses and other operating expenses by 16 per cent and 24 per cent respectively," the statement published in a section of the press said. 
But the company sounded cautious on prospects for the full year ending June, saying the planned closure of the factory for annual maintenance posed the biggest threat to its margins. 
Also of concern to EAPCC on its June results is "volatile" foreign currency exchange fluctuations, power and fuel costs. 
A 15 per cent growth in foreign exchange earnings, which grew from Sh363.2 million by December 2005 to Sh427.4 million for period ending December 2006, greatly boosted the company’s after tax profit. 
Published under Cement News