Bamburi Cement Issues Profit Warning On 2018 Earnings

Bamburi Cement has issued a profit warning for the 2018 full year earnings, indicating that they could go down by more than 25 per cent.

The firm attributes the expected decrease on difficult market conditions as well as escalating international energy prices in both Kenya and Uganda.

The company has also cited increasing power costs in Kenya as well as additional provisions, mainly receivables, in Uganda as causes of the decrease.

“This announcement is based solely on the company’s preliminary assessment of the group’s expected financial results of the year 2018,” reads the statement.

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The company’s results will be announced in the first quarter of 2019.

The company’s profits dropped by Ksh3.9 billion to Ksh1.97 billion in 2017 owing to lower sales in the Kenyan market.

At the time, the company blamed the electioneering, the rate cap and drought for its reduced performance.