East Africa Portland Cement has bounced back to profitability to post net profit of Kshs. 1.9 billion for the full year period ending June 31, 2021.
This was positive result for the cement manufacturer which has posted a profit loss after tax of Kshs. 2.8 billion during the same period last year.
According to EAPC the return to profitability emanated from fair value gain on its investment property which was re-value to Kshs. 5.8 billion for the period under review compared to Kshs. 1.1 billion valuation last year.
Revenue from cement sales rose marginally during the period to Kshs. 2.8 billion from Kshs. 2.5 billion in 2020.
The cement manufacturer has had an eventful year with following the exit of former boss Stephen Nthei in May and the subsequent appointment of Daniel Kiprono as its acting managing director.
This followed a series of events including a fallout over the sale of two parcels of land to generate more than Kshs. 6.2 billion required to repay a KCB loan and restructure the company.
The firm registered a loss in operations worth Kshs. 3.2 billion while income realized from its cost containment programmes was eroded by provisions, litigation, and loss on the transfer of land to liquidate loans totaling Kshs. 1.3 billion..
The Portland board had reached a resolution to dispose of two parcels of land in Mavoko to offset debts.
As the company invests in restructuring, plans are at an advanced stage for East African Portland Cement Company alongside Karsan Ramji & Sons, National Cement, Rai Cement Bamburi Cement, and Savannah Cement to add a total of 4.4Mt/yr to their clinker capacities.
This means expanding their total clinker production capacity by 70% to 10.7Mt/yr by 2023.
EAPC now targets to reduce the plant’s capacityThe Board has not recommended payment of dividends. The Kenya Revenue Authority (KRA) has collected Kshs. 2 billion through the Voluntary Tax Disclosure Programme where many entities responded to the programme. Speaking during this year’s KRA Tax Payers Day, President Uhuru Kenyatta asked the taxman to encourage more Kenyans to regularize their tax compliance to avoid heavy penalties.Kenya has 19.6 million registered voters while the number of active individual taxpayers currently stands at about 6 million.The government says many Kenyans demand better infrastructure, public services, and access to public goods but they are not willing to fund the same through registering and paying taxes.Over 393 taxpayers have applied for the taxman’s Voluntary Tax Disclosure Programme […]
