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Bamburi reports mixed performance in 2017

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World Cement,

LafargeHolcim subsidiary, Bamburi Cement, has announced a fall in pre-tax profits for 2017, following a year of challenging market conditions and rising costs. Pre-tax profit was KES4.1 billion compared to KES8.3 billion the year before, driven by a decline in top-line revenues and higher energy costs.

A drought and prolonged election period in Kenya led to lower construction activity in the East African country – particularly in the crucial homebuilder sector. Ugandan demand meanwhile was broadly flat.

“The 2017 results reflect a mixed performance in a challenging market environment,” said Dr John Simba, Bamburi’s Chairman.

Performance is expected to pick up in 2018, however, with projected demand growth in both Kenya and Uganda. The company is also on track to commission Phase 1 of expansion projects in both countries in 2H18, leading to an increase in cement production capacity on 1.8 million t. Studies on Phase 2 of the expansion are also at an advanced stage.

“The expected commissioning will see the business enhance its market leadership position and underscores our belief in the growth of East African economies, underpinned by a robust construction industry” concluded Simba.

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LafargeHolcim news Cement news 2018