Bamburi Cement Group has reported profit growth by 22.2 per cent to Sh2.2 billion in the financial year 2021.
The cement maker’s turnover increased by 19 per cent from Sh34.9 billion to Sh41.4 billion.
According to the group, the increase was attributed to growth in retail and key account segment in both Kenya and Uganda on account of strong performance.
“We made substantive progress on our strategic cost optimization actions and sustainability initiatives leading to high levels of operational efficiency and the 17 per cent increase in our operating profit. As the cost of input raw materials continues to rise excessively, we will continue implementing these initiatives,” Seddiq Hassani, Bamburi Cement Group Managing Director commented.
“Our commitment towards innovation aimed at achieving better returns for our shareholders continues. For example, one of the investments made was looking to fill a gap in the untapped specialized mortar segment and Bamburi TectorCeram SETI 300, ready-to-use tile adhesive under this range has been launched this year. We have also been gradually embarking on the switch to green solar energy as part of our efforts towards saving on power costs and contributing to Net Zero goals,” Seddiq added.
Domestic selling price in Kenya improved compared to prior year due to higher proportion of premium products sales and targeted price actions in the retail segment.
The performance also reflects the continued economic recovery from impact of the Covid-19 pandemic particularly in the construction sector. This was achieved despite 2021 being an inflationary year with prices of coal, power, imported clinker and global fuel increasing and adversely affecting the company’s cost base.
The company’s net profit was Sh1.38 billion, 22.2 per cent higher than the previous year. With this, the board has recommended a dividend pay-out of Sh1.38 billion at the rate of Sh3.58 per ordinary share subject to shareholders ‘approval in the upcoming Annual General Meeting.
Hassani said the company envisages growth in cement demand supported by stable economic environment.
In Uganda, cement demand is expected to be fuelled by greater investment in public infrastructure especially in the oil industry.
However, the impact of the closure of the Uganda – Rwanda borders a downside risk though positive signs on the reopening have been observed at the beginning of 2022. He is also optimistic about further growth in exports with the admission of Democratic Republic of Congo to the EAC.
Dr. John Simba, the Bamburi Cement Group Chairman concluded, “In Kenya, the big four government agenda in the areas of affordable housing and significant investments in infrastructure projects in the pipeline (roads, railways, ports, special economic zones) is expected to fuel the growth of cement market. However, the impact of the coming general election is an unquantified risk factor which potentially might impact market dynamics”.
Subject to the approval of shareholders at the subsequent Annual General meeting, the dividends will be Paid on or about 26th July 2022 to shareholders on the register at the close of business on 26thy May 2022.