Bamburi Cement Plc posted a net profit of KSh 776 Million for the first six months ending 30th June 2021, compared to KSh 721 Million over the same period in 2020.
Turnover increased to KSh 19.6 Billion in H1, 2021 from KSh 16.2 Billion in H1, 2020, while operating profit increased to KSh 1.1 Billion from KSh 228 Million in H1, 2020.
The Group’s pre-tax profit increased significantly from KSh 213 Million in H1, 2020 to KSh 1.1 Billion. Total comprehensive income increased from KSh 958 Million to KSh 1.1 Billion during the period under review.
Equity attributable to owners of the firm increased from 30 Billion to KSh 30.3 Billion at the end of the six months ending 30th June 2021. Bamburi Cement profitability, measured by Earnings per Share, increased to KSh 1.86 from KSh 1.84 in H1, 2020.
Bamburi Cement’s profitability attributed to recovered cement market
The Cement maker said its improved profitability is due to recovery of the cement market from a depressed 2020 that saw the construction business hit adversely by COVID-19 containment measures.
The Group recorded volume recovery in domestic and export markets while higher demand for premium cement led to increased turnover.
Bamburi has also benefited from increased government spending on huge infrastructure projects, consuming the more expensive premium cement.
Seddiq Hassani, Bamburi Cement Managing Director, attributes the firm’s improved performance to the cost optimization plan that has enabled the cement manufacturer to offset significant cost inflation on imported clinker and coal.
Hassani said the past year had been a learning curve that has enabled the firm to evolve towards more modern business practices.
“We maintain a positive outlook for the rest of the year as the government continues to roll out the Covid-19 vaccination programs and ease-off containment measures which we hope will continue to drive progressive economic recovery,” said Hassani.
Dr John Simba, Chairman of Bamburi Cement Plc, said the Kenyan government’s continued commitment to delivering the ‘Big 4’ agenda and the ongoing key infrastructure projects in oil and gas in Uganda continue to generate positive prospects for the Group.
Bamburi Cement Plc is a Lafarge company, a member of Holcim Group, and a leading cement maker in the East Africa region, having been operational for 67 years. Its subsidiaries include Hima Cement Ltd (Uganda), Bamburi Special Products Ltd, Lafarge Eco Systems Ltd and Binastore Limited.