Bamburi Profits Up 56 Per Cent

Bamburi Profits Up 56 Per Cent
16 July 2004

Bamburi Cement Company yesterday announced that its profits after tax had increased by 56 per cent over the past six months.  Mr Didier Tresarrieu, the Managing Director, said un-audited results indicated that the company’s profit-after tax had increased from 517 to Sh821.   Profits attributable to shareholders also increased by 57 per cent from Sh478 million in the previous period to Sh751 million in the period under review.

"The turnover is growing in the right direction even though not at the right speed. We expect to post even better results in the coming year," Tresarrieu told an investors’ briefing at a Nairobi hotel.   The firm also reported a 15 per cent rise in its turnover, which rose from Sh4.8 billion the previous year to Sh5.5 billion.

The growth margins are extraordinary given the sluggish performance of the economy, which largely determines cement consumption rates. Board chairman Richard Kemoli attributed the good results to "better price realisation arising from stable market conditions as well as demand growth in the domestic market."

While the Kenyan-based parent firm was reporting huge profits, its Ugandan subsidiary is said to be on the straits saddled by government’s decision to increase spending on defence. Kemoli said the unstable market conditions in Uganda had led to a loss of market share but expressed optimism that a new strategy implemented that has been put in place at the Hima plant would lead to a turn-around.

Published under Cement News