Bamburi recently announced the unaudited group results for the half year period ended 30th June 2019. In the half year period, pretax profit declined to KSh 23 million from KSh 722 million booked in the first half of 2018.
The dip was due to an increase in finance cost from the long term loan taken in Uganda to finance capacity expansion and the impairment of assets in Rwanda.
The cement company posted an operating profit of KSh 332 million, a massive decrease from the KSh 1.2 billion operating profit recorded in the first half of 2018.
This was due to the higher depreciation charge following the commissioning of additional capacity expansion projects in both Kenya and Uganda.
The net comprehensive income after tax was KSh 0.4 billion a higher value than the previous period which was KSh 0.3 billion. This was due to the capacity expansion project commissioned in 2018. This subsequently led to the earnings per share growing to KSh1.61 from KSh 1.47 in 2018.
Bamburi group profitability in the second half 2019 is expected to slowly recover due to the top line growth and cost management initiatives. The group will continue to execute the “Building for growth” agenda and at the same time prioritizing cost optimization.