We have extracted a chairman’s statement from the 2019 half year interim report of Bamburi Cement Limited (BAMB.ke), Listed on the Nairobi Securities Exchange
Overall, the Group’s turnover in the first half of 2019 remained flat on account of a contracted cement market in Kenya and further adversely impacted by significant drop in cement uptake by the SGR project compared to same time last year when Phase 2A was still underway. In addition, the Uganda operations were impacted by the continuing closure of the Uganda/Rwanda border, which has rendered the Rwanda market inaccessible.
The first half of the year was challenging with operating profit reducing to KES 0.3 billion from KES 1.2 billion. Higher depreciation charge following the commissioning of additional capacity expansion projects in both Kenya and Uganda mid last year impacted operating profit adversely. The 2018 comparator base did not have the impact of the incremental depreciation charge. Additionally, the difficulty in accessing the Rwanda market has not only led to loss off profit margin, but also to the need to impa