Bamburi Cement Post kes 1.12 Billion Profit for FY2020
Bamburi Cement has posted a profit after tax of Kes 1.12 Billion the financial period ended 31st December 2021, a 212% growth in revenue from the Kes 359 million that was posted during the same period in 2019.
Group Revenue in the company declined by 5% to Kes 34.88 billion during the financial period ended 31st December 2020 compared to Kes 36.89 billion in 2019. The decline was attributed to the 13% slump in revenue that was registered in the first half of the year due to the onset of the pandemic, which saw the government put in place measures to curb the spread of the Corona Virus.
However, in the second half, the Group registered a recovery in revenue and posted a topline growth of 3% following the easing of the containment measures.
Profit before income tax in the group increased by 144% to Kes 1.78 billion from the Kes 0.73 billion recorded in 2019. In addition, the group realized a lower net cost of finance to kes 0.21 million in the financial period ended 31st December 2020 from Kes 0.39 billion recorded in 2019, a 46.8% improvement.
Total Comprehensive Income for the year grew 448% from Kes 350m in 2019 to Kes 1.92 billion in 2020, driven by a lower than prior year effective Tax Rate of 36.4% as compared to 50.6% in 2019. Bamburi Cement also attributed the gain to the retranslation of Uganda shillings into Kenya Shillings at Kes 807 million compared to Kes 22 million in 2019 on consolidation.
The total cash generated from operations recorded a growth of 87.5% to Kes 6.86 million in the financial period ended 31st December 2021 compared to Kes 3.66 million recorded during the same period in 2019.
Bamburi Cement Outlook
Bamburi Group has expressed confidence in the two governments of Kenya and Uganda to help contain the pandemic and promote a positive economic environment supportive of business growth.
We will complement government efforts with continuing to flawlessly execute our Building for Growth strategy, while drawing from the strong foundation of resilience that our teams have built and demonstrated in the face of the pandemic during the year 2020.
In consideration of the strong performance delivered in both bottom line and cash generation in the year 2020, the Board of Bamburi Cement Limited recommended the payment of a first and final dividend of Kes 3.00 per share amounting to Kes 1.09 million in respect of the year ended 31 December 2020.
Bamburi Cement said the dividend would be paid on or about 15 July 2021 to shareholders on the register at the close of business on 16 May 2021, subject to shareholders’ approval at the Annual General Meeting scheduled for 10 June 2021.