Construction activity slowed down because of elections. dhahabu.co.ke
Mombasa-based Bamburi Cement’s after-tax revenue for the six months ending June 2017 plummeted by more than a third on low sales as construction activity slowed down ahead of the August polls, the NSE-listed firm said Friday.
The company, which also owns Hima Cement Ltd in Uganda, reported a 36.21 percent drop in net profit to Sh1.85 billion from Sh2.9 billion a year earlier.
Sales revenue fell to Sh17.54 billion from Sh19.11 billion last year, an 8.21 percent decline.
Bamburi Cement, majority owned by French conglomerate Larfage, said private sector investment slowed in the review period, hitting the individual home builder segment hardest Business Daily reported.
“While the underlying business remains solid in Kenya, the market faced softening demand,” managing director Bruno Pescheux said in a statement Friday.
“However, we expect the Kenyan market will rebound in the last quarter (October-December) while the Ugandan market is expected to continue performing well in line with the projected growth in both the domestic and regional markets.”
The firm kept a tight lid on operating costs which were flat, declining 0.53 percent to Sh14.88 billion.
Earnings per share in the review period dropped to Sh4.39 from Sh7.15 a year ago, a 38.6 percent drop.