Bamburi Cement reported net income of US$14 million in 2021, compared to US$11 million in the previous year. The increase was driven by increased sales volumes in Kenya and Uganda due to a solid performance in the retail and wholesale segments.
The significant increase is also due to the ongoing economic recovery from the impact of the Covid-19 crisis. 19 pandemic.
Group profit before tax for 2021 increased to $22 million, up 22.2 percent from 2020, primarily due to higher growth in operating profit.
The listed cement manufacturer’s full-year 2021 sales rose 19 percent to $414 million, up from $349 million in 2020.
The domestic sales price in Kenya increased compared to year-over-year due to increased sales of premium products and target price promotions in the retail segment.
The cement maker’s operating profit for the year increased 17 percent from $20 million to $23 million. This was achieved even though 2021 was an inflationary year in which coal, electricity, imported clinker and global fuel prices rose, adversely affecting the company’s cost base.
Seddiq Hassani, Managing Director of Bamburi Cement Group, said the company’s results are due to positive volume and price performance coupled with cost management through various cost initiatives and operational efficiencies high operating efficiencies of 17 percent increase in our operating profit. As the cost of the raw materials used continues to escalate excessively, we will continue to implement these initiatives,” said Hassani.
He added, “Our commitment to innovation aimed at delivering better returns for our shareholders , continues. For example, one of the investments made aimed to fill a gap in the untapped specialty mortar segment and Bamburi TectorCeram SETI 300, a ready-to-use tile adhesive in this range, was launched this year. We have also gradually started the transition to green solar energy.”
Hassani said the company forecasts growth in cement demand, supported by a stable economic environment.
In Uganda, cement demand is increasing expected to be fueled by greater investment in public infrastructure, particularly in the oil industry.
Hassani said he was also optimistic about continued growth in exports with DRC’s admission to the EAC.
Bamburi Cement Group Chairman John Simba said in Kenya that the Big Four government agenda is expected to lead to cement market growth.
In Uganda, cement demand is expected to be fueled by more substantial Investments in public infrastructure, particularly in the oil industry.
However, Mr. Simba expressed concern that the company would be hit by the increasing political tensions in Kenya.
“The impact of the upcoming August 9 general election represents an unquantified risk factor that could potentially impact market dynamics,” said Mr. Simba.< /p>
The Board of Directors of Bamburi Cement Plc recommends paying a first and final dividend of $0.035 per common share of $13 million, compared to $0.03 per common share of $11 million in 2020.