× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Bamburi Cement's profit plunges 83 per cent in 2018

WORK LIFE
By Reuters | April 16th 2019
By Reuters | April 16th 2019
WORK LIFE

Bamburi Cement , Kenya’s largest cement company, reported an 83 percent drop in pretax profit for last year, hurt by shrinking sales in its home market and higher debt provisions at its Uganda business.

The company, which is controlled by Lafarge Holcim, said on Monday that profit fell to 680 million shillings ($6.74 million) from 4.12 billion a year earlier.

However, it boosted its total dividend for the year to 5.10 shillings per share from 4.00 shillings a year earlier and higher than its earnings per share.

Bamburi blamed higher costs, including for energy, and higher provisioning for receivables in Uganda. Cement volumes in Kenya grew by 9 percent despite a 5 percent drop in the overall cement market, suggesting it had cut prices to boost market share, analysts said.

“Increased competitive pressure fuelled by a growing gap between installed cement grinding capacity and the shrinking market has played a key role in the market dynamics,” Bamburi said in a statement.

Another firm, ARM Cement, fell into administration last year under a mountain of debt, having failed to secure a deep-pocketed suitor to rescue it.

Share this story
YouTube accidentally links Notre-Dame fire to 9/11 attacks
Broadcasts of the Notre-Dame fire triggered a YouTube fact-check feature which accidentally tagged it as footage of the 9/11 terror attacks
CS Najib Balala summoned over stalled project
There have been reports of cut-throat competition between agencies under the Ministry of Tourism.
.
RECOMMENDED NEWS
Feedback