Bamburi Cement Plc almost doubled its net profit for the half year ended June 30 despite tough operating environment in the second quarter.
According to financial results for the period under review, the listed cement maker’s profits grew to Sh721 million compared to Sh393 million similar period last year.
The growth in the bottom line is attributed to a tax credit of Sh508 million arising from the adjustment of deferred tax liability in line with the new corporate tax rate in Kenya of 25 per cent.
Its gross profit also grew almost 10 folds to Sh213 million compared to Sh23 million in the corresponding period last year.
It attributes this to the swift implementation of “Health, cost and cash” action plan adopted at the onset of the Covid-19 Pandemic that helped mitigate the adverse impact of the crisis.
However, the pandemic impacted total turnover leading to a 13 per cent decline to Sh16.2 billion as compared to Sh18.7 billion in 2019.
Commenting on the Company’s half-year results, managing director Seddiq Hassani said that despite depressed demand the improved performance is a testament of Bamburi Cement Group’s business resilience.
“We are pleased to have delivered positive results in the first half of 2020 and we will continue to optimize on reducing costs related to production, logistics, raw materials and service to our customers to drive top line growth,’’ Hassani said.
He added that measures taken are delivering results as the Group is registering cost savings and improved cash generation to counter the decline in top line.
Bamburu Cement chairman John Simba on his part said the the adverse impact of Covid 19 pandemic is expected to carry on into the second half of 2020.
The Group’s priority continues to be the implementation of necessary measures to enhance business resilience and to protect the health and safety of employees and their families during this pandemic,’’Simba said.
The firm posted a 37 per cent shrink in profit after tax to Sh359 million for the full year ended December 2019 against Sh572 million posted similar period in 2018.