The Standard Group Plc is a multi-media organization with investments in media platforms spanning newspaper print operations, television, radio broadcasting, digital and online services. The Standard Group is recognized as a leading multi-media house in Kenya with a key influence in matters of national and international interest.

Standard Group Plc HQ Office,
The Standard Group Center,Mombasa Road.
P.O Box 30080-00100,Nairobi, Kenya.
Telephone number: 0203222111, 0719012111
Email: [email protected]

NEWS & CURRENT AFFAIRS

The Nairobian

Kenya's ARM Cement swings to first half loss on higher finance costs

Business

By Reuters | Jul 31, 2015

Kenya's ARM Cement swung into a first-half pretax loss of 473.52 million shillings ($4.6 million) from a profit of 1.25 billion shillings, the firm said on Thursday, but said it could improve its performance in the second-half of 2015.

ARM said in a statement that financing costs rose to 627.04 million shillings in the period to end-June from 220.97 million shillings due to inclusion of costs for construction of a clinker plant in Tanzania where it also operates cement plants.

Total revenue rose to 7.69 billion shillings from 7.57 billion shillings, the firm said.

ARM however said it incurred a narrower unrealised foreign exchange loss of 1.42 billion shillings in the half year to June from a loss of 25.8 million shillings last year, thanks to weakening Kenyan and Tanzanian shilling.

"Inspite of the recent currency depreciation and increase in interest rates, the fundamentals for continued economic and construction sector growth remain strong," the firm said.

Keep Reading business

"The company expects to significantly improve performance in the second half of the year through cost efficiencies arising from self-sufficiency in clinker, and increased sales from all business divisions."

ARM reported a loss per share of 1.4 shillings versus earnings of 3.4 shillings per share a year ago.