Bamburi Cement Plc posts 61% profit after tax, Kenya operations posts 160% increase profit after tax in FY23 results
Bamburi Cement Plc reported a 61% increase in profit before tax of Kshs1.06 billion from Kshs 659 million for the 2023 Financial Year results ending December 31, owing to strong topline performance, industrial and operational efficiency, and productivity savings.
The period’s turnover rose by 6.3% to Kshs 22 billion from Kshs 20 billion over the previous year – attributable to improved commercial strategy execution, increasing export sales volumes, and differential pricing for the company’s diverse range of products and solutions.
Kenya’s profit after tax increased by 160% in 2023 compared to the previous year. The Group posted an after-tax loss of Kshs 399 million as a result of the discontinued operations.
Despite tough operating conditions, the Group reported a solid cash generation from operations, which increased to Kshs 2.89 billion as a result of improved operating profit and working capital. The year under review was impacted by cost pressures from new and higher taxation measures, rising inflation, fast depreciating local currency, which disproportionately raised fuel, power and production costs.
Bamburi Cement CEO Mr. Mohit Kapoor attributed the results to a strong focus on cost cutting strategies, execution of commercial strategies and strengthening industrial and operational efficiencies.
“We effected stringent cost cutting strategies on operations, energy sources by using alternative fuels, and by lowering raw materials importation dependency. Our agility and speed in decision making in the context of changing market dynamics helped us to execute strategic actions to deliver solid performance. Additionally, our industrial performance improvement across all Industrial Performance Benchmarks (IPB) contributed to the delivery of solid financial performance,” said Mr. Kapoor.
On the outlook, Mr. Kapoor said the company is targeting better results in this financial year. “Our divestiture from the Ugandan market allows Bamburi Cement PLC to focus on the Kenyan market where we are positioned for record EBIT margins driven by our shift from volume to value. We are poised for profitable growth through new high level of cash flow generation from operations, decarbonization initiatives, sustainable solutions and products.
The Board of the Company has recommended the payment of a first and final dividend of Kshs 5.47 per ordinary share amounting to Kshs 1.98 billion for the year ended 31 December 2023 as compared to Kshs 0.75 per ordinary share amounting to Kshs 272 million in 2022.
Bamburi Cement Group Chairman Dr. John Simba noted: “With our strategic direction focused on the Kenyan business, we are now well positioned to achieve profitable growth across all our businesses, fueled by sustainability, innovation and operational excellence to seize and serve as well as seizing opportunities ahead in innovation and sustainable building.”
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