The Bamburi Cement Board of Directors has warned its shareholders to brace for depressed earnings in the financial year 2022.
In a notice to the shareholders signed by the board chairman Dr John Simba, the listed industrial company said 2022’s earnings will be 25% less than those reported in the financial year 2021.
“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 proposal, the projected net earnings for the financial year 2022 will be lower than net earnings reported in the financial years 2021 by at least 25%.” read part of the notice.
Bamburi attributed the situation to a decrease in demand for cement and other factors in the economy, such as the surge in energy costs.
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“The expected decline in earnings is largely attributable to a slowdown in market demand for cement, high energy costs coupled with increased raw material costs due to disruption of the supply chain,” said Bamburi.
However, the company assured the investors and shareholders that the company will bounce back on its feet after the anticipated economic recovery.
“The Board would, however, like to reassure shareholders, potential investors and the general public that is is confident the company will register improved performance and profitability in the future, driven by the expected recovery of the economy and an improvement in the input costs,”
In August 2022, the company reported a decrease in earnings of 87% in the half year ended June, which was an Sh95 million profit down from Sh776 million in the same period in 2021.
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