Bamburi Cement Plc has posted a record Ksh.1.1 billion pretax profit for the year ended June 30, 2021, a 416.4 percent growth compared to Ksh.213 million that was recorded same period last year.
The Group also saw its revenue grow 21 percent in the period under review with the outstanding performance being attributed to a recovery of the cement market that was negatively hit by the coronavirus pandemic, and a rebound in the construction sector.
Due to increased demand for premium cement products coupled with volume recovery in both the domestic and export markets, the Group’s turnover went up to Ksh.19.6 billion from Ksh.16.2 billion recorded in the comparative period.
To add to their profits and volume sales, Bamburi benefited from government spending on infrastructure projects including the Nairobi Expressway and Thwake dam among others as a higher proportion of sales of their premium products in the first half of 2021 were consumed by the projects.
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“The Kenyan government’s continued commitment towards delivery of the ‘Big 4’ agenda and the ongoing key infrastructure projects in oil and gas in Uganda continue to generate positive prospects for the Group,” said Dr. John Simba, Chairman of Bamburi Cement PLC.
Mr Seddiq Hassani, the Group’s Managing Director also attributed the growth to carry-over cost savings implemented in their ‘Health, Cost & Cash’ (HCC) action plan adopted at the onset of the COVID-19 pandemic.
“The past year has been a learning curve that has enabled us to evolve towards more modern business practices as we continue to set industry standards on quality, operational efficiency and innovation,” said Hassani.
While maintaining a positive outlook for the rest of the year with the government’s vaccine roll out program, and easing of containment measures, the company is optimistic of economic recovery.
The Company has also renewed its commitment to operate sustainably and has lined up carbon emission control and circular economy initiatives aimed at safeguarding the environment and delivering cost-efficiency.
Bamburi’s earnings per share have improved to Ksh.1.86 after the profit rise.
In July, the Group resolved to change its name from Bamburi Cement Limited to Bamburi Cement PLC, following registration of the new name in line with provisions of Section 53 of the Companies Act 2015.
The change of name was approved by the Company’s shareholders during the 70th Annual General Meeting held on June 10 this year.
“The change of name applies only to the Bamburi Cement group company name with all market brands remaining unchanged. All contractual relationships and obligations that the company has with its customers, partners and other stakeholders are not affected by this change of name,” said Waeni Ngea, Company Secretary.
Changes became effective on July 26 following issuance of the certificate of change of name by the Registrar of Companies.
Bamburi Cement was incorporated in 1951 and began operations in 1954 and is a subsidiary of Holcim, the global leader in innovative and sustainable building solutions, which also recently rebranded from LafargeHolcim.
Its subsidiaries also include – Bamburi Special Products Ltd, Lafarge Eco Systems Ltd, Binastore Ltd, and Hima Cement Ltd, a Uganda-based cement maker.