[2008-08-12]  Bamburi Half-Year Profit Up 32 Percent
Bamburi Cement Group has announced a 31.8 per cent increase in its pre-tax profit for the six-month period ending June 30, 2008.
Despite the year's stormy start, the group's profit grew to Sh2.9 billion up from Sh2.2 billion recorded over the same period last year.
Announcing the results Thursday after a board of directors meeting, group chairman Richard Kemoli said the six months were very challenging following the post-election situation and its impact on the economy.
"Inflation rates rose to levels unseen in the recent past putting further pressure on business activities across the region," said Mr Kemoli.
During the period under review, turnover rose from Sh10.5 billion to Sh11.4 billion, representing an 8.6 per cent growth.
"In Kenya, the good performance was stimulated by strong market recovery in the second quarter of the year and augmented by good production performance," he said.
The company continued to implement its capacity enhancement strategy, making significant capital investments over the same period.
Michel Puchercos, the group's managing director, said the cement manufacturer had launched a Sh400 million clinker cooler project at its Mombasa Plant.
It also invested in a new packing plant at the Coast operation and truck packing yard at its Nairobi grinding plant.
"These will go a long way towards boosting our production capacity," said Mr Puchercos.
In Uganda, the group commenced the construction of a new production line at its Kasese Plant at a cost of Sh7 billion to double its capacity.
"This project is due for completion by 2010," he said.
The board proposed an interim dividend of Sh3.20 per ordinary share amounting to Sh1.2 billion, which is payable on or about November 6, 2008.
Joshua Oigara, the group's new finance director, remained positive about the remaining quarters.


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