Increased sales boost ARM Cement's 9M12 pretax profit, Kenya

Increased sales boost ARM Cement's 9M12 pretax profit, Kenya
22 October 2012

Kenya’s second largest cement producer ARM Cement (formerly Athi River Mining) said in the first nine months pretax profit rose to KES1.2bn (US$14.1m) from KES296m, driven primarily by higher sales of Rhino Cement.

Rhino Cement, which is ARM's flagship operation set up in 1997, launched its Tanzania cement production plant in Dar es Salaam this month.

Turnover for the first three quarters of the year jumped 29 per cent to KES7.74bn compared to the same period the previous year.

ARM said it can look forward to a strong year after its recently opened Dar es Salaam cement plant helped boost sales. "The company remains optimistic about the business environment in the (east Africa) region, and expects the growth in demand for (its core brand) Rhino Cement and other products will continue," ARM said.

"This will contribute to the group revenues in the fourth quarter of 2012. Construction at the 1.2Mta clinker plant at Tanga is progressing as per schedule," the company said in a statement.

ARM Cement Ltd received US$50m from the African Finance Corporation (AFC) to fund in part the Tanzania plant as well as expansion efforts into the region.

Published under Cement News