Bamburi Cement has joined HF Group and Sameer Africa in issuing a profit warning, indications that its revenues for its financial year will be lower than 25 per cent it received in 2017.
The Lafarge-owned manufacturer informed its shareholders and potential investors that they expect earnings to drop significantly due to increasing electricity prices in Kenya and Uganda, difficult market conditions, and additional provisions, mainly receivables, in Uganda.
“This announcement is based solely on the Company’s preliminary assessment of the Group’s expected financial results for the year 2018,” wrote Betty Kanyagia, the firm’s Company Secretary, to the Nairobi Security Exchange.
Last year, Bamburi issued a similar notice due to anticipated fall in profits and depressed dividend payout. It posted a net profit of Ksh1.97 billion for the period being stated.
