Bamburi posts Sh1.7b pre-tax profit in 2020

Bamburi Cement has announced a Sh1.7 billion pre-tax profit for the financial year ended December 31, 2020.

This represent a 144 per cent increase from Sh728 million realised during the same period in 2019. 

The cement manufacturer reported net earnings of Sh1.1 billion in the review period, up from Sh359 million the year before.

The cement manufacturer achieved this amid a rise in operating profit by 77.5 per cent in 2020 to Sh1.9 billion, up from Sh1.1 billion the previous year.

This was assisted by a 47 per cent reduction in net finance costs which declined to Sh207 million from Sh369 million in 2019.

Uganda subsidiary

However, the listed cement manufacturer which has a subsidiary in Uganda said its topline declined by 5 per cent as Covid-19 containment measures announced by the Kenya and Uganda Governments hit the economies in March 2020.

Group Managing Director Seddique Hassani said lockdowns and restriction of movement across borders in the first half of 2020 eroded its topline by 13 per cent, though the company registered a recovery in the second half of 2020, after the easing off, of the measures.

​Hassani said the launch and implementation of the “Health, Cost and Cash” (HCC) built resilience and a crisis-proof business.

“Thanks to the “Cash” pillar of the HCC agenda, the group generated record cashflow of Sh4.8 billion in 2010, against Sh359 million in 2019,” Hassani said.

The board has recommended the payment of a dividend of Sh1 billion, a contrast to year 2019, when no dividend was declared.​

Dividends

“In consideration of the strong performance delivered and in recognition that year 2020 was a difficult one financially for many, our esteemed shareholders included, the board of Bamburi Cement Limited, recommends the payment of a final dividend of Kes 3 per share,” said John Simba, board chair. 

This was achieved in spite of a decline in activities in the Kenyan cement market amid lower selling prices.