Cement maker posts Sh1.8b full year profit

By James Anyanzwa

ARM Cement Ltd, formerly Athi River Mining, has announced a 31 per cent growth in full-year profit, and declared a first and final dividend of 50 cents per share.

The cement maker’s profit before tax (PBT) for the 12-month period ended December 31, grew to Sh1.79 billion from the previous year’s Sh1.36 billion. The total revenues grew 39 per cent to Sh11.2 billion from Sh8.2 billion in a similar period.

Cement sales increased by 64 per cent owing to increased market share in the country, and in Rwanda, and contribution of three months sales from the Dar-es-Salaam plant, which became operational in October last year. The Group reckons that the demand for cement in the region is expected to grow in the wake of peaceful elections in the country, and continued robust growth in the East African Economies.

“The Group expects to register another year of strong growth and improved profitability on the back of new capacity in Tanzania and increased capacity utilisation and efficiency in operations in Kenya,” the company said.

At the annual General Meeting held on July 24 last year, shareholders approved the company’s change of name from ‘Athi River Mining Ltd’ to ‘ ARM Cement Ltd.’

This was to reflect the growing contribution and importance of the cement business in the Group.

The Company, however, continues to operate the industrial minerals, lime, and sodium silicate and Mavuno fertiliser divisions. Shareholders also approved a share split of five shares for each existing share.