Bamburi Cement PLC, one of the leading cement manufacturing companies in East Africa, has issued a profit warning to its shareholders, potential investors, and the general public. The company’s Board of Directors announced that the projected net earnings for the financial year 2023 are expected to be at least 25% lower compared to the previous year.
The decline in net earnings is primarily attributed to a one-off settlement of outstanding tax liabilities and legal disputes related to Hima Cement Limited in Uganda, a subsidiary of Bamburi Cement. Dr. John P.N. Simba, Chairman of Bamburi Cement PLC, emphasized the impact of the closure of the sale transaction on the company’s 2023 financial results.
“This announcement reflects our commitment to transparency and accountability to our stakeholders,” stated Dr. Simba. “While we anticipated challenges in the financial year 2023, the extent of the decline in net earnings underscores the complexities involved in settling legal and tax matters, particularly with our subsidiary in Uganda.”
The disclosure, made in accordance with regulatory requirements, aims to provide investors and the public with timely information about the company’s financial performance. Despite the projected decline in earnings, Bamburi Cement remains optimistic about its long-term prospects and strategic initiatives.
