Bamburi Cement posted a 50.4 per cent rise in net profit to Sh5.8 billion in the full year ended December 31, 2015.

The cement maker’s 2015 jump in earnings was helped by a growth in sales volume in both domestic and regional market as well as aggressive cost-cutting measures.

In a similar period in 2014, the firm had posted a profit of Sh3.9 billion. Its profit-before-tax soared by 46 per cent to Sh8.5 billion, up from the Sh5.8 billion posted in 2014. This was boosted by exchange gains on monetary assets held in foreign currency.

The group’s turnover increased by nine per cent to Sh39.2 billion, driven by increased demand in the key domestic markets ---Kenya and Uganda, resulting mainly from growth in large infrastructure projects and contractor segments. The volumes were also supported by growth in the inland Africa exports out of Uganda earlier in the year.

According to Group Managing Director Bruno Pescheux, the growth was realised despite a slow-down in domestic economy in the last quarter.

“The 2015 market conditions were more favourable compared to 2014, with stable macro-economic conditions for most of the year in both the domestic and regional markets,” he said.

He said that despite some turbulence in interest rates, currency depreciation and inflation in the third quarter, the Uganda and Kenya business displayed great resilience. The Nairobi Securities Exchange (NSE)-listed company saw its operating expenses rise to Sh5.2 billion, translating to a 29 per cent rise from the Sh4 billion spent in 2014.

Also, having implemented a restructuring exercise across all its entities to align operations, the firm incurred Sh192 million as restructuring costs. The cement maker closed the year with assets worth Sh34.3 billion, a Sh255 million more than what was recorded last financial year.

Shareholders will share in the good returns after the board recommended a final dividend of Sh7 per ordinary share in addition to a Sh6 interim dividend that had been paid in October 2015. This brings the total dividend to Sh4.7 million compared to Sh4.3 million paid in 2014.

Yesterday, its share price remained unchanged at Sh193 at the close of trading on the bourse. Going forward, the group is optimistic of even better returns in 2016 from Kenya and Uganda despite a slow start in Kenya.