The operating profit for Bamburi Cement for the 2018 financial year dropped from 4.2 billion shillings in 2017 to 0.8 billion shillings.
The cement manufacturer has attributed the sharp drop in profits to higher energy costs in power, coal, and petcoke as well as an increase in the price of imported clinker and raw materials.
The operating profits for the company remained flat on the Kenyan market as compared to 2017 while that of Uganda declined due to the additional “provision of receivables.”
The group’s turnover grew by 3.7 percent from 36 billion shillings in 2017 to 37.2 billion shillings in 2018 according to stats from the company.
The volumes of cement grew by 9 percent while its market in Kenya declined by 5 percent. The cash flow generated was 3 billion shillings, lower than the previous year which stood at 5 billion shillings.