Bamburi Cement Plc has announced that it has posted a profit after tax of Ksh. 670 million for the year ended December 31, 2023. This is an improvement from the Ksh. 258 million the company reported in a similar period in 2022.

The company however posted an after tax loss of Ksh. 399 million as a result of discontinued operations in Hima Cement. Tax liabilities and legal disputes cost the company a little over Ksh 1. billion.

The period’s turnover rose by 6.3% to Ksh. 22 billion from Ksh. 20 billion over the previous year. The company’s attributes this to increasing export sales volumes, and differential pricing for the company’s diverse range of products and solutions.

The company reported a rise in cash generation from operations, which increased to Ksh. 2.89 billion as a result of improved operating profit and working capital. The year under review was impacted by cost pressures from new and higher taxation measures, rising inflation, fast depreciating local currency, which raised fuel, power and production costs.

Bamburi Cement CEO Mr. Mohit Kapoor attributed the results to a strong focus on cost cutting strategies, execution of commercial strategies and strengthening industrial and operational efficiencies.

“We effected stringent cost cutting strategies on operations, energy sources by using alternative fuels, and by lowering raw materials importation dependency. Our agility and speed in decision making in the context of changing market dynamics helped us to execute strategic actions to deliver solid performance. Additionally, our industrial performance improvement across all Industrial Performance Benchmarks (IPB) contributed to the delivery of solid financial performance,” said Mr. Kapoor.

On the outlook, Mr. Kapoor said the company is targeting better results in this financial year. “Our divestiture from the Ugandan market allows Bamburi Cement PLC to focus on the Kenyan market where we are positioned for record EBIT margins driven by our shift from volume to value. We are poised for profitable growth through new high level of cash flow generation from operations, decarbonization initiatives, sustainable solutions and products.

The Board of the Company has recommended the payment of a first and final dividend of Ksh. 5.47 per ordinary share amounting to Ksh. 1.98 billion for the year ended 31 December 2023 as compared to Kshs 0.75 per ordinary share amounting to Ksh. 272 million in 2022.