Bamburi Cement Plc made a net profit of KSh 1.4 billion in 2021, up from KSh 1.1 billion for the period ended 31st December 2020.
The Group’s profit before tax for 2021 grew to KSh 2.2billion, which is 22.2 % higher than 2020, primarily driven by the higher growth in operating profit.
The listed cement maker’s turnover for the full year 2021 was up 19% to KSh 41.4billion compared to the prior year’s KSh 34.9billion.
This significant increase was driven by volume growth in Kenya and Uganda because of solid performance in retail and key accounts segments.
This also reflects the continued economic recovery from the impact of the Covid-19 pandemic.
The Group’s overall average selling price improved compared to the prior year on account of Kenya’s higher proportion of premium products sales.
The Group’s Operating Profit for 2021 grew by 17% to KSh 2.3billion compared to KSh 2.0billion in 2020.
The growth was driven by solid top-line performance and robust cost management through various cost initiatives and operational efficiencies.
This solid performance was achieved despite increases in coal, power, imported clinker and global fuel prices, which adversely affected the firm’s cost base.
The Group’s pre-tax profit for 2021 grew to KSh 2.2billion compared to KSh 1.8 billion in 2020, primarily driven by the growth in operating profit.
The cash flow generated from operations at KSh 4.4billion was lower than KSh 6.9billion in 2020.
The 2021 position reflects additional investment in working capital of KSh 2.4billion on account of a higher level of business operations in the current year.
The Group’s cash flow position and the balance sheet remain strong and provide a solid foundation for future growth.
In its outlook, Bamburi Cement envisages growth in cement demand supported by a stable economic environment.
In Kenya, the big four government agenda in recognizable sustainable housing projects and significant investments in infrastructure projects in the pipeline is expected to fuel the growth.
In Uganda, cement demand is expected to be fueled by more significant investment in public infrastructure, especially in the oil industry.
The Eastern European conflict is expected to hurt the global economy, especially freight and imported raw material prices.
In addition, the impact of the coming general election is an unquantified risk factor which potentially might affect market dynamics.
The Board of Bamburi Cement Plc recommends paying a first and final dividend of KSh 3.58 per ordinary share amounting to KSh 1.3billion, compared to KSh 3 per ordinary share amounting KSh 1.1billion in 2020.
This dividend payout will be paid on or about 26 July 2022 to shareholders on the register when the business closes on 26th May 2022.
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