Bamburi cement has posted a Ksh.83 per cent profit growth to Ksh.721 million through the first half of 2020.
The near double earnings acceleration is highly attributable to costs containment efforts and gains marked in the period.
The firm cut its financing costs by 24 per cent to Ksh.133 million as it diversified its funds sourcing along with improved cash-generation.
The firm for instance switched a third party overdraft with a loan facility it booked in Kenya while cash generation improved by Ksh.1.8 billion.
Bamburi further booked Ksh.116 million from Forex gains registered by the Uganda shilling which strengthened against other regional currencies in the period.
The company’s revenues however took a beating from the economic slump registered following the advent of the COVID-19 pandemic with cement consumption declining.
The group’s first half turnover for instance fell by 13 per cent to Ksh.16.2 billion from Ksh.18.7 billion last year.
“Since the beginning of the pandemic, there has been a gradual decline in activity in the building and construction industry driven by construction site closures. Lower than prior year selling prices have also been experienced due to change in product mix and prevailing market conditions,” the company said in a statement Friday.
Bamburi expects the adverse impact of the pandemic to carry on into the second half of the year.
Video Of The Day: | BULLDOZERS FOR SANITIZERS | Families remain in the cold after evictions from Kariobangi sewage estate