ARM Cement Ltd, Kenya, announced a 2% increase in revenues in the first half to KES7.7 billion. The company reported increased cement sales in Kenya and Tanzania, boosted particularly by the start-up of the new Tanga clinker line in 2Q15. The plant is currently operating at 70% capacity utilisation and will ramp up to full capacity of 4000 tpd in the coming months.
Operating profit over the period increased to KES1.6 billion, up 7% y/y, which is attributed to the reduced cost of clinker now that the new plant is online. The Tanga plant supplies clinker to the company’s Dar es Salaam, Kaleleni and Athi River plants, replacing the need for clinker imports. The company is even selling clinker to grinding units in Tanzania and exporting it to Rwanda and DRC.
EBITDA increased 9% in 1H15 to KES1.94 billion and the EBITDA margin increased from 23% to 25%.
Profit after tax was impacted by finance costs and currency depreciation, leaving the company with a net loss of KES356 million. The group has announced it is to issue a US$70 million five-year corporate bond to repay short-term loans that were used to finance the new Tanga clinker plant.
Demand for cement in East Africa increased 10% in 1H15.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/africa-middle-east/17082015/arm-cement-benefits-from-increased-clinker-production-328/