BAMBURI CEMENT GROUP DEFIES TOUGH ECONOMIC TIMES TO POST IMPROVED PROFIT

BAMBURI CEMENT GROUP DEFIES TOUGH ECONOMIC TIMES TO POST IMPROVED PROFIT

By Douglas Muriithi

Bamburi Cement Group PLC recorded a pre-tax

profit of KSh 213 million for the first half ending

June 30, 2020 up from KSh 23 million in the

corresponding period last year.

The growth in Profit before tax is attributed to

the swift implementation of “Health, cost and

cash” action plan adopted by the Group at the

onset of the Covid-19 Pandemic that helped

mitigate the adverse impact of the crisis.

However, the pandemic impacted total turnover

leading to a 13% decline to KSh 16.2 billion as

compared to KSh 18.7 billion in 2019.

Profit after tax grew to KSh 721 million as

compared to KSh 393 million prior year

occasioned by a tax credit of KSh 508 million

arising from the adjustment of deferred tax

liability in line with the new corporate tax rate in

Kenya of 25%.

Commenting on the Company’s half year

results, Group Managing Director Seddiq

Hassani noted that despite depressed demand

the improved performance is a testament of

Bamburi Cement Group’s business resilience.

“We are pleased to have delivered positive

results in the first half of 2020 and we will

continue to optimize on reducing costs related

to production, logistics, raw materials and

service to our customers to drive topline

growth.

These measures are delivering results as the

Group is registering cost savings and improved

cash generation to counter the decline in

topline.” Hassani said. “We continue to provide

superior services and deliver high quality

products to our customers.” He added.

Commenting on the business outlook, the

Group Chairman John Simba, indicated that the

adverse impact of COVID 19 pandemic is

expected to carry on into the second half of

2020. He noted that the Group’s priority

continues to be the implementation of

necessary measures to enhance business

resilience and to protect the health and safety

of employees and their families during this

pandemic.