Bamburi Cement Limited Registers 7.9 Billion Shillings in Operating Profits

Bamburi Cement Limited has posted an operating profit of 7.9 billion shillings as a result of what the management termed as product innovation and diversification supported by operational excellence and cost management.

Group turnover for the period under review stood at 38 billion shillings slightly below prior year. This was mainly on account of slowed private investment in individual home builder segment in the latter half of 2016 coupled with lower exports to Inland African markets.

Cash from the operations of the company stood at 6.9 billion shillings but registered a lower net cash position to the prior year arising from the higher tax contribution to the Exchequer of 3.5 billion shillings up from 2.5 billion shillings paid in 2015 an increase in working capital and mobilization funds for the capacity increase project.

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“Our 2016 full year results confirm the effectiveness of the Group strategy in delivering consistent and sustainable performance in a competitive environment,” said the Board of Management.

‘’We are pleased to have delivered positive results in 2016 and we remain optimistic of the market growth prospects in both our domestic and inland Africa export markets in 2017’’.  The Managing Director Bruno Pescheux said in a statement.

‘’Overall in Kenya and Uganda, we have seen the business show great resilience.  We will continue to implement several tactical and strategic initiatives in the market, that enhance our customer experience, develop our product portfolio offering, our human capital and our operational Capacity, of which will cement our regional market leadership position in the medium to longer term,” he added.

As Bamburi makes profits, its competitor the East African Portland Cement Company is struggling to make ends meet with a burden of debts weighing heavily on its operations with sources indicating that the company is broke and should be placed under receivership.