Kenya: Bamburi Cement profits flat for 2016

LafargeHolcim subsidiary Bamburi Cement earned KES5.89bn (US$57.4m) in after tax profits in 2016, up just 0.3 per cent on the previous year, reports the Star newspaper.

The company stressed that operating profits had shown a more robust performance, rising by eight per cent to KES7.9bn.

Turnover was down 2.9 per cent, but production costs fell faster, dropping by seven per cent to KES24.8bn.

“Overall, there was a marginal reduction in volumes into inland Africa export markets and intense competition particularly in the individual home builder segment impacting prices in some markets. This was offset by higher volumes in the infrastructure and contractor segment in the key markets of Kenya, Uganda and Rwanda,” said Bamburi in a statement.

LafargeHolcim is currently working on expanding capacity in both Kenya and neighbouring Uganda, with both projects on course for completion by mid-2018.