Kenya: EAPCC profits down 42%

East African Portland Cement Company (EAPCC) reported a 42 per cent drop in full-year net profit as a result of increased operating costs.

Financial statements recently published show the company’s net profit fell from KES7.15bn (US$70.3m) in the 12 months ending June 2015 to KES4.14bn in the year ended June 2016. This drop in net profit has been largely attributed to an increase in operational losses, which climbed to KES1.58bn from KES557.5m.

The company issued a profit warning in February 2016, saying it expected profit to be lower by at least 25 per cent. This forecast drop was blamed on high operational costs and foreign exchange losses. The company also warned of unrealised losses from its investment portfolio.

Despite this, revenues increased from KES8.41bn to KES8.87bn as a result of high cement sales.