Sharp Daily
No Result
View All Result
Wednesday, June 25, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Bamburi Cement’s Half-year Profits Dwindle To Ksh124 Million

Editor SharpDaily by Editor SharpDaily
August 26, 2022
in Investments
Reading Time: 3 mins read
Bamburi Cement

Bamburi Cement’s profits before tax for the first six months of 2022 declined from Ksh1.1 billion to Ksh124 million mainly influenced by the high operational cost with operating profit standing at Ksh210 million from Ksh1.2 billion prior year.

In the first half of the 2022 financial year, Bamburi Cement Group recorded a revenue of Ksh20.1 billion representing a 2.6 per cent increase from Ksh19.6 billion posted in the corresponding period of 2021. Unaudited results for six months ended June 30, 2022, show that the Group’s turnover was mainly supported by volume growth along with improved average selling price compared to the prior period.

Cash flow generated from operations was lower at Ksh1.8 billion compared to the prior year at Ksh1.4 billion. The H1 2022 position reflects additional investment in working capital due to inflation of input prices compared to the closing December 2021 position.

Read: Bamburi Cement Posts Ksh2.2 Billion Profit In 2021

RELATEDPOSTS

Tanzania’s Amsons acquires 38% stake in Bamburi cement in record block trade

December 19, 2024

Savannah Clinker withdraws bid for Bamburi cement shares

December 4, 2024

The Group’s earnings were significantly hit by a jump in direct production costs driven by rising local and global inflationary pressure on input resources including fuel, logistics and imported clinker in both Kenya and Uganda thus adversely impacting the operating profit. In addition, the bottom line was adversely impacted due to an unrealized foreign currency loss of the Kenya shilling and Uganda shilling against other major currencies.

Data from Kenya National Bureau of Statistics (KNBS) shows that the inflation rate increased to 7.9% at end of June 2022, breaching the highest limit as estimated by the Central Bank of 7.5% for the first time since August 2017 stoked by rising food and record fuel prices stemming from disrupted supply chains.

While providing more insight into the Group’s earnings, Mr Seddiq Hassani, Bamburi Cement Group Managing Director said that, “We started the first quarter on positive volume and price performance emerging resilient from the last two years that taught us adaptability and operational efficiency. Despite closing H1 2022 in the midst of a very volatile economic environment, we remain optimistic that Bamburi Cement is well positioned to deliver superior shareholder value and profitability, while meeting market demand as continuous focus remains on strategic cost optimization actions and sustainability initiatives.”

Read: Bamburi Cement Enters Specialized Mortar Market By Unveiling Tile Adhesive Line, Bamburi SETI

“It is my belief that the manufacturing sector can paint a true reflection of the region’s economic temperature given the events of the past two years and including the general elections in Kenya this year” he added.

Mr. Seddiq however underlined that Bamburi Cement will continue strengthening its efforts towards ramping up the usage of alternative fuels and executing operational strategies to reduce dependence on imported inputs making local markets self-sufficient while driving strong cash generation and consistent net profit margins.

Analysis of the H1 2022 financial results reflected that the Group’s liquidity and balance sheet remain strong with increased investment in working capital due to inflation of input prices compared to the closing December 2021 position.

Looking ahead, Dr John Simba, Bamburi Cement Group Chairman said, “The Company will continue to drive its strategy in a bid to maximize margin and optimize the cost base so as to drive profitability. The Kenya cement market is expected to recover after the general elections while in Uganda cement demand is anticipated to be fueled by greater investment in public infrastructure especially in the oil industry. However, the Global on-going conflict is expected to have an adverse impact on the markets especially on freight and imported raw material prices.”

Email your news TIPS to editor@thesharpdaily.com

Previous Post

NHIF Abandons Plan To Increase Monthly Contributions For Employees

Next Post

Outgoing Governors, Deputies To Earn Over Ksh1.3Billion Send Off Package

Editor SharpDaily

Editor SharpDaily

The latest in business, real estate, education, investments, tech and entrepreneurship, brought to you daily. Reach us through thesharpdaily@gmail.com

Related Posts

Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
Analysis

Your First Investment should be an emergency fund with Cytonn Money Market Fund

June 16, 2025
Investments

Contrarian investing in Kenya.

June 13, 2025
Investments

Policies shaping Kenya-Tanzania energy collaboration

June 10, 2025
Investments

Navigating inflation and currency risks in African investments

June 10, 2025
Investments

A guide to investing in Africa

June 10, 2025

LATEST STORIES

How Kenya can compete with global employment markets

June 24, 2025

Why Athi River deserves your investment

June 24, 2025

Parliament slashes tax on digital asset trades: What this means for investors

June 23, 2025

Understanding Joint Ventures: A strategic tool in modern business

June 23, 2025

How bushy can a bush safari get?

June 20, 2025

Understanding SPVs

June 20, 2025

Why small investments are a power move

June 20, 2025

Social consequences of the tax relief for gamblers

June 20, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024