Bamburi Cement Group has reported an 87.7 percent decline in its profit for the half year ended June 2022.
The group recorded a 95 million shilling profit, a decline from 776 million shillings reported in the same period in 2021.
This has been attributed to high operational costs, with operating profit standing at 210 million shillings, almost five times lower than the 1.17 billion shillings posted in the prior year.
Cash flow generated from operations was also lower, with a loss of 1.8 billion shillings compared to the prior year at 1.43 billion shillings.
Despite the drop in earnings, Bamburi defied economic odds to record a marginal growth in revenue during the period.
“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 the continuous focus remains on strategic cost optimization actions and sustainability initiatives,” said Bamburi Cement Group Managing Director, Seddiq Hassani.
He 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.
A newsmaker, reporter and anchor at Pearl Radio, Ndalilah Sharon is witty and savvy.
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