Bamburi Cement PLC has posted a drop in net profits to Sh88 million for the first half of 2023.
This is a Sh7 million drop from the Sh95 million that the firm recorded in the same period in 2022.
According to the cement maker the drop in profits have been attributed to tax settlement in Uganda that affected the net profits.
The cement manufacturer had increased its pre-tax profits to Sh621 million, in the period from Sh124 million in 2022.
However, a Sh533 million tax weighed down the gains leading to the drop in profitability.
Despite the drop, Bamburi Cement Group managing director Mohit Kapoor, remained positive that the company is well positioned to remain profitable as it continues to execute its operational strategies and commercial excellence to enhance positive results growth.
Bamburi said The first half of the year witnessed heightened inflationary pressures coupled with significant depreciation of the local currencies impacting fuel, power and production costs.
“The 2023 first-half performance is a clear demonstration of our reliance, adaptability, customer focus and operational efficiency. We remain consistent in providing quality products and services through innovation to bolster topline growth as well as maintaining effective cost management measures that have resulted in business stability even with the unforeseen challenging occurrences,” said Kapoor.
In the period under review the cash generated from operations increased by 260 percent to Sh2.89 billion driven by a better profit before tax.
The Group Turnover was KES 22.3 billion a growth of 11percent compared to the prior year.
Despite the high inflation and the weakening shilling, which impacted on production costs, the company says its committed to deliver strong results.
“As a market leader, our vision and business strategies remains top-notch to deliver quality product and services while ensuring shareholder value. We remain steadfast in our efforts to drive positive performance in the second half of 2023,” said Bamburi Cement Group Chairman John Simba.
