Bamburi Cement has attributed rising power costs, greater imports and the new mining levy for its 28% drop in pre-tax profit for 1H14. The Lafarge-owned Kenyan company recorded profits of KES2.3 billion from KES3.2 billion in 1H13. Operating profit likewise fell by 30%, at KES2.2 billion. This is in spite of growth in group turnover from KES15.8 billion to KES17.3 billion, attributed to a rise in sales volumes both within Kenya and in other markets.
The company is reportedly optimistic about the second half of the year, given the strength of the Kenyan economy and the building boom. The government has earmarked some US$2 billion to spend on infrastructure projects, which holds a lot of promise for the cement industry, as reported earlier this week.
Bamburi Cement has invested in alternative energy sources, including a petcoke project in Uganda, and has increased its use of alternative fuels. The company expects these cost-saving measures to improve operating profit going forward.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/africa-middle-east/08082014/bamburi-cement-1h14-results-reflect-higher-costs-257/