CIMERWA PLC (CMR.rw) 2020 Abridged Report
CIMERWA Established in 1984, CIMERWA Plc has over three decades worth of experience as Rwanda’s first and only integrated cement manufacturer. The firm’s production plant is located in Bugarama, Rusizi District near the South Western border of Rwanda.
Addressing the media at CIMERWA’s Annual Financial Report Roundtable held at the Kigali Serena Hotel on 14th December 2020, CIMERWA Plc CFO – John Bugunya shed light on the company’s financial performance.
The company was able to record strong Earnings before Interest Tax Depreciation and Amortization (EBITDA) of Rwf 16.56 Billion and Profit After Tax (PAT) of Rwf 1.95 Billion. The company’s liquidity position remains strong with the liquidity ratio of 2.07 and cash balances of Rwf 13.3 Billion. This puts the company in an excellent position to meet its obligations and to fund its expansion projects.” Bugunya explained.
The company has a syndicated debt facility which was obtained for the construction of the new plant commissioned in 2015. This debt facility was Rwf 43 Billion as at 30 September 2020 with maturity due in October 2024.
COMMENTARY NOTES TO THE FINANCIALS
Revenue – revenue was 1% (Rwf 0.854 billion) up compared to similar period last year due to effective execution of pricing strategy to cover cost escalation during the year.
Cost of Sales (COS) 10% (Rwf 4.7 billion) up compared to last year mainly due impact of general inflationary increases and timing of the annual major plant maintenance activities undertaken in November 2019 (while there was no major plant maintenance in the previous year). This was partly offset by benefits from our cost savings program, including improved coal substitution.
Financing costs– This relates to interest expense on the investment loan for construction of the new plant commissioned in 2015. The decline in finance costs in 2020 by 8% is due to reduction in the loan principal amount.
Property, plant & Equipment — Is 6% (Rwf 5.1 billion) down compared to last year due to depreciation of the assets over their useful life as they generate economic benefits. Inventories — increase by 29% year-on- year is due to new critical spares bought in preparation of the plant maintenance done in November 2020 and increased clinker stocks following good production runs in the last quarter of the year.
Trade & Other receivables– Is 12% (Rwf 0.781 billion) down compared to last year due to improved receivables recovery processes.
Trade & other payables -— 15% (Rwf 1.2 billion) up compared to last year mainly due to customer deposits of Rwf 3.4 billion. This was due to increased demand due to reduction in cement imports from the region due to covid- 19 related logistics disruption as well as domestic cement production directed to servicing the school construction project under the Ministry of Education.
Borrowings – This relates to project financing for construction of our 600k ton capacity plant. Repayment is in line with facility agreement with the debt due to mature in October 2024.
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