Bamburi Cement Group has recorded a pre-tax profit of KSh 213 million for the first half ending June 30, 2020 up from KSh 23 million in the corresponding period last year.
The growth in Profit before tax is attributed to the swift implementation of “Health, cost and cash” action plan adopted by the Group 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% decline to KSh 16.2 billion as compared to KSh 18.7 billion in 2019.
Profit after tax grew to KSh 721 million as compared to KSh 393 million prior year occasioned by a tax credit of KSh 508 million arising from the adjustment of deferred tax liability in line with the new corporate tax rate in Kenya of 25%.
Commenting on the Company’s half year results, Group Managing Director Seddiq Hassani noted 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 topline growth. These measures are delivering results as the Group is registering cost savings and improved cash generation to counter the decline in topline.” Hassani said. “We continue to provide superior services and deliver high quality products to our customers.” He added.
Commenting on the business outlook, the Group Chairman John Simba,indicated that the adverse impact of COVID-19 pandemic is expected to carry on into the second half of 2020.
He noted that 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.