Bamburi Cement Group has announced a net profit of Ksh. 1.38 billion for the period ended 2021. This represents a 22.2% rise in profitability as compared to the previous year.
This rise in profitability is on the back of positive volume and price performance coupled with robust cost management through various cost initiatives and operational efficiencies.
The performance also reflects the continued economic recovery from impact of the Covid-19 pandemic particularly in the construction sector. The Group’s Turnover increased by 19% from Kes 34.9 billion to Kes 41.4 billion. This was attributed to growth in retail and key account segment in both Kenya and Uganda. Domestic selling price in Kenya improved compared to prior year due to higher proportion of premium products sales and targeted price actions in the retail segment.
The cement maker’s operating Profit for the year grew by 17% to Kes 2.3 billion from Kes 2.0 billion. This was achieved despite 2021 being an inflationary year with prices of coal, power, imported clinker and global fuel increasing and adversely affecting the company’s cost base.
Mr. Seddiq Hassani, Bamburi Cement Group Managing Director commented: “We made substantive progress on our strategic cost optimization actions and sustainability initiatives leading to high levels of operational efficiency and the 17% increase in our operating profit. As the cost of input raw materials continues to rise excessively, we will continue implementing these initiatives. Our commitment towards innovation aimed at achieving better returns for our shareholders continues. For example, one of the investments made was looking to fill a gap in the untapped specialized mortar segment and Bamburi TectorCeram SETI 300, a ready-to-use tile adhesive under this range has been launched this year. We have also been gradually embarking on the switch to green solar energy as part of our efforts towards saving on power costs and contributing to Net Zero goals” he added.
Dr. John Simba, the Bamburi Cement Group Chairman concluded: “In Kenya, the big four government agenda in the areas of affordable housing and significant investments in infrastructure projects in the pipeline (roads, railways, ports, special economic zones) is expected to fuel the growth of cement market. However, the impact of the coming general election is an unquantified risk factor which potentially might impact market dynamics”.
The board has recommended a dividend payout of Kes 1.38 billion at the rate of Kes 3.58 per ordinary share subject to shareholders’ approval in the upcoming Annual General Meeting.