Cement manufacturer Bamburi Cement has recorded a Ksh. 1.1 billion pre-tax profit in the first six months of the year up from Ksh.213 million posted in a similar period in 2021.
The cement maker’s topline profit also grew by 21 percent in the period under review.
Bamburi has accredited the topline growth to a convalesce in the local cement manufacturing industry which has been greatly been affected in the first six months of the year owing to Covid-19 disruptions and containment measures to tame the virus.
“The Group recorded volume recovery in both the domestic and export markets coupled with an increased demand for premium cement products, pushing up the average selling prices and driving up the Group’s turnover up to Ksh.19.6 billion compared to Ksh.16.2 billion recorded in the comparative period,” the cement manufacturer said in a statement.
Sustained infrastructure spending by governments and a rebounding construction sector also contributed to the cement maker’s good business in the period under review. Of late, there has been increased spending by the government on infrastructure projects like the Nairobi Expressway, Thwake dam among others.
The company has also cited “a higher proportion of sales of premium products in H1 2021”. Premium cement is largely consumed by big projects requiring special quality cement-like superior strength or waterproofing and fetches more favorable prices compared to ordinary cement.
Apart from the growth in topline, the company, through its Managing Director, Seddiq Hassani attributes this to “carry-over cost savings following the implementation of its ‘Health, Cost & Cash’ (HCC) action plan, that was adopted at the onset of the Covid-19 pandemic in 2020”.
The cost optimization agenda has enabled the company to offset significant cost inflation on imported clinker and coal that has been absorbed in the reporting period, compared to last year. Financing Costs have also reduced by almost 50%”.
“We have a renewed commitment to operate sustainably in line with Holcim’s agenda of Building Progress for People and Planet. To achieve this, Bamburi has lined up carbon emission control and circular economy initiatives that will safeguard the environment and also deliver cost-efficiencies and add greater value to the stakeholders,” Mr. Hassani added.
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