Bamburi Cement has reported a 22.2 per cent jump in net profit to Sh1.38 billion for the year to December 2021 from Sh1.13 billion in 2020.
The company has recommended a dividend payout of Sh1.38 billion at a rate of Sh3.58 per share, which translates into 100 per cent of the profit made over the year, subject to shareholders' approval.
The company attributed last year’s performance to an increase in the volume of cement sold as well as higher retail prices, especially for its premium products, cost-cutting initiatives and increased efficiencies.
“The performance also reflects the continued economic recovery from the impact of the Covid-19 pandemic, particularly in the construction sector,” said Bamburi in a statement.
“Domestic selling price in Kenya improved compared to the prior year due to higher proportion of premium products sales and targeted price actions in the retail segment.”
The group’s turnover increased by 19 per cent to Sh41.4 billion from Sh34.9 billion.
The firm expects continued growth over this year but is cautious of the August polls as well as the Russia-Ukraine war that could see a surge in the cost of raw materials.
“In Kenya, the Big Four government agenda in the areas of affordable housing projects and the significant investments in infrastructure projects is expected to fuel this growth,” said the company.
“The Eastern European conflict is expected to have an adverse impact on the global economy, especially on freight and imported raw material prices. In addition, the impact of the coming General Election is an unqualified risk factor, which potentially might affect market dynamics.”