Bamburi Cement has issued a profit warning for the year ending December 31, 2022.
A profit warning is issued when a listed company expects its profits to be lower by over 25 percent.
“The Board wishes to inform shareholders of the Company, potential investors and the general public that based on the forecasted 2022 financial performance of the Company currently at the Board’s disposal, the projected net earnings for the financial year 2022 will be lower than net earnings reported in the financial year 2021 by at least 25%,” the board said in a public notice.
The expected decline in earnings has been attributed to a slowdown in market demand for cement, high energy costs coupled with increased raw material costs due to the global disruption of the supply chain.
Read: NSE Issues Profit Warning For 2022
“The Board would however like to reassure shareholders, potential investors and the general public that it is confident that the Company will
register improved performance and profitability in the future, driven by the expected recovery of the economy and an improvement in input costs,” added the notice.
Bamburi Cement made a net profit of Ksh1.4 billion in 2021, up from Ksh1.1 billion for the period ended December 31, 2020.
The Group’s profit before tax for 2021 grew to Ksh2.2 billion, which is 22.2 % higher than 2020, primarily driven by the higher growth in operating profit.
The listed cement maker’s turnover for the full year 2021 was up 19% to Ksh41.4 billion compared to the prior year’s Ksh34.9 billion.
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