Kenya’s ARM Cement has reported a loss before tax of Ksh 363.9 million for the period ended June 2016 versus a loss of Ksh 473.5 million posted in June 2015.
The group’s revenue declined by 13% to Ksh 6.67 billion compared to Ksh 7.69 billion posted in June 2015. The listed company says it witnessed increased competition in the cement market in Tanzania as a result of a new entrant (Dangote Cement) which resulted into a downward pressure on the prices. Prices were 33% below the corresponding period in the previous year.
Tanzania’s cement market is currently experiencing massive over supply against a lower consumption rate coupled with an increase of of cheap imports.
The listed company’s Finance costs increased significantly by 134.3% to Ksh 1.5 Billion as a result of interest costs previously capitalized during the construction of Tanga clinker plant in Tanzania. Net Loss came in at Ksh 267 Million.
On Friday 26th August, the company’s shareholders approved CDC Group’s cash injection of Ksh 14 Billion (USD 140m) in exchange of a 40.4% equity stake. The capital injection will be used in retiring the company’s current debt and setting up a new plant in Kitui County in Kenya.
