Bamburi Cement has reported a 78.3% decline in half year earnings to Sh 399 million. The listed cement manufacturer says the period was challenging as the market continued to contract due to high external cost environment.
“Uganda was negatively impacted in the first quarter by production challenges and product availability while the second quarter was negatively impacted by competitive pressure as all major players recorded extra capacity and slowdown in government expenditure.”says the company in a statement.
The company’s sales turnover was flat to Ksh 18.6 billion with lower sales being recorded in Uganda due to product unavailability and competitive pricing.
Operating costs rose by 9.2% to Ksh 17.4 billion from Ksh 16 billion in a similar period in 2016.
Operating profit declined by 56.2% to Ksh 1.2 billion from Ksh 2.7 billion attributed by a flat turn over, higher power, coal and raw materials as well as the impact of the balance sheet write off in Uganda.
Earnings per share dropped by 66.5% to Ksh 1.47 from Ksh 4.39 in 2017
The Board of Directors recommends payment of an interim dividend of Ksh 1.00 per share from Ksh 2.50 in 2017.
The group expects a recovery in the latter part of the year into 2019 while marketing strategies are being adopted in Uganda to ensure the Group grows its market share in the domestic market.
