Listed cement maker, Bamburi Cement defied Covid-19 hurdles that heavily impacted the construction sector to triple its net earnings for the year ended December 31, 2020.
According to its financial results released Tuesday, the group recorded an after tax profit of Sh1.12 billion compared to Sh359 million in 2019, a 212 per cent increase.
Pre-tax profit grew 114 per cent to hit Sh1.8 billion compared to Sh728 million in the previous year.
The growth in pre-tax profit was driven by a significant 77.5 per cent growth in operating profit of Sh1.98 billion in 2020 up from Sh1.12 billion in 2019.
Additionally, a 47 per cent reduction in net finance costs to Shh207 million down from Sh369 million in 2019, further boosted the earnings.
The Group attributes the good performance to the launch and implementation of the 'Health, Cost and Cash' (HCC) agenda adopted at the onset of the Covid-19 pandemic to build resilience in, and crisis-proof the business.
“Our profitability despite the adverse economic impact of Covid-19 pandemic, goes a long way to show the resilience of our employees, great teamwork, and the strong foundation set by our company culture and long-term business strategy,’’ said Cement MD Seddiq Hassani.
Optimisation coupled with a significant turnaround of the Uganda subsidiary after a depressed 2019 performance attributed to the closure of the Uganda-Rwanda border, saw the Group’s bottom-line drop to Sh34.9 billion in 2020 compared to 36.8 billion in 2019.
The company initially suffered a 13 per cent decline in the first half of 2020 following the containment measures due to the Covid-19 Pandemic but recovered the second half, thanks to the easing off of the measures.
