NSE Listed cement manufacturer East African Portland Cement has today announced its financial results for the year ended 30th June 2015.
The company reported profit before tax of Ksh 7.3 Billion, which included an unrealised gain on revaluation of investment property, amounting to Kshs 7.2 Billion and income from compensation for compulsory acquisition of SGR land of Kshs. 836m and forex gains of Kshs. 175m on its hedged Japanese Yen loan.
The results were announced following the conclusion of the process of land revaluation as required by the International Accounting Standards.
Highlights
- 2015 Revenue of Ksh 8.42 billion shillings against last year’s Ksh 9.06 billion shillings
- EAPCC’s investment property consists of two parcels of land in Athi River, was valued at Kshs 9.4 Billion up from Kshs 2.25 Billion the previous year
- “On the operating front, the Company’s turnover decreased by 7% to Ksh 8.4 billion largely attributable to prolonged plant shutdown undertaken from October to December 2014, to install a new dust management plant in order to comply with NEMA regulations” said Mr. Kephar Tande MD of EAPCC.
- Gross profit reduced from 26% prior year to close at 22% due to purchases of clinker to replace clinker not produced when the plant was down,” he said. As a result the company made an operating loss of Kshs. 577m after spending Kshs. 1.1 billion on purchased clinker during the plant shut down.
- EAPC also earned SKsh 174 million from foreign exchange on its dollar denominated loan
- Interest income rose from Ksh 700 million earned in the previous year to Sh3.8 billion.
- Reductions in the administration and selling expenses of 14.5 and 20 per cent to Ksh 1.79 billion and Ksh 420 million respectively.
