Bamburi Cement expects its 2023 net earnings to drop by at least 25 per cent, the listed company said in a profit warning.
- •The cement manufacturer attributes the drop in profits to a one-off settlement of outstanding tax liabilities and legal disputes in Hima Cement in Uganda.
- •Bamburi Cement withdrew from the Ugandan market after it sold 1.3million ordinary shares of its subsidiary to Sarrai Group Limited and Rwimi Holdings.
- •The company reported KSh181 million profit after-tax in 2022.
The Hima Cement transaction, valued at $120 million, was approved by shareholders at a virtual general meeting held last year in December.
“Based on the preliminary assessment of the 2023 consolidated financial performance of the company, the projected net earnings for the financial year 2023 will be lower by at least 25 per cent than the earnings reported in the financial year 2022,” the company said in the statement.
The cement company revealed plans to dispose of its indirect ownership of Hima Cement in November 2023, stating that it wanted to focus on its primary Kenyan market.
In 2022, the group recommended the payment of a first and final dividend of KES 0.75 per ordinary share amounting to KES 272 million.
