Bamburi Cement 2012 pretax profit down 15%

Bamburi Cement has reported a 15 per cent decline in pretax profit for full year 2012 to KES7.17bn (US$83m) as it is impacted by lower gains on its foreign currency holdings, Reuters has reported.

Bamburi Cement, which is part of the Lafarge group, said turnover edged up four per cent to KES37.bn but higher costs drove operating down 14 per cent.

"The group anticipates underlying cement demand to continue growing in the region despite a slow start in Kenya influenced by the election period, supported by improved political stability in the inland Africa export markets," Bamburi said in a statement.

According to the Kenya National Bureau of Statistics, cement consumption in 2012 recorded its first decline in three years with consumption unlikely to reach the 3Mt mark. In contrast, according to the Standard Investment Bank, Kenya is predicted to see cement consumption of 3.81Mt in 2012, rising to 4.22Mt in 2013. Consumption per capita is about 58kg, a little under the regional average of 60kg.

With presidential elections, massive infrastructure spending, and five players expanding capacities, 2013 looks set to be an interesting year for the Kenyan cement market. The flurry of new players will help meet this demand as well as bringing some much-needed competition to a market that has been long dominated by a handful of multinationals.