Bamburi Cement Ltd, Lafarge’s East African subsidiary, achieved an increase in profits and turnover in 2014. Operating profit grew from KES5.2 billion in 2013 to KES5.5 billion last year. Profit before tax was up 5.5%, rising from KES5.5 billion to KES5.8 billion. Boosted by better market conditions in Uganda, the group reported a turnover of KES36 billion, 6% higher than in 2013.
Although costs were impacted by higher power prices in Kenya, these began to decline in 4Q14 following commissioning of an additional geothermal power as part of the National Grid. The company also inaugurated its petcoke fuel conversion project at the Kasese plant in Uganda, which began to provide energy cost benefits in 2H14.
The Bamburi Group has reported an improvement in exports into inland Africa, apart from South Sudan, as well as growth on both the Ugandan and Kenyan markets.
“We are very optimistic about market growth prospects in both our domestic and inland Africa export markets and are well positioned to benefit from them,” said Bruno Pescheux, Group Managing Director. “At the same time, a number of large infrastructure projects have been or are being launched in both Kenya and Uganda, which with our wide cement and concrete portfolio of brands across the region, places us in a strong position to supply. This, together with our improving cost base following the completion of a number of cost containment measures at all our plants, gives us good foundation for a robust 2015.”
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/africa-middle-east/09032015/bamburi-cement-reports-positive-2014-results-475/