Bamburi Cement Limited on Thursday announced a 9% increase in revenue and 38% increase in operating profit in its full year results for the period ended December 31, 2015.
The group's turnover for the period under review grew to Sh39 billion from Sh36 billion in 2014, bolstered by strong growth in the infrastructure and contractor segments.
Commenting on the company’s results, the board said: “We have made good progress in the implementation of appropriate strategies to enhance the group’s growth and profitability.
“The growth in operating profit has arisen from growth in sales volumes, a better external cost environment, together with the positive impact of the progressive cost management initiatives and process improvement measures that we have adopted across our operations in both Kenya and Uganda.”
Bamburi also posted an increase in operating profit to Sh7.3 billion, an increase of 38% compared to 2014.
The profit before tax increased to Sh8.5 billion from Sh5.8 billion in 2014, boosted by exchange gains on monetary assets held in foreign currency.
"We experienced some turbulence in interest rates, currency depreciation and inflation in the third quarter of the year but this was contained by monetary actions by the respective central banks in both countries. We are optimistic that the business environment will remain stable in 2016. Overall in Kenya and Uganda, we have seen the business show great resilience,” Bruno Pescheux Managing Director said in a statement.
“This has arisen from our deliberate focus on effective cost-management and investments in enhancing the efficiency in operations and our performance, a trajectory we shall continue through 2016.
“Our prior and continuing investments in building on our existing brand portfolio and value-added services to provide a superior offer to our customers together with our continued innovation in our product and services, will bear fruit across all our operations. This while remaining cognizant of our safety and health obligations and environmental stewardship responsibilities,” the board said.
The company said it will now leverage on these results, take appropriate measures and decisions, to sustain its market leadership, in the medium to long term, in rapidly growing regional markets.