Bamburi expects its full-year net earnings will fall by at least a quarter compared to last year “based on preliminary assessment on the unaudited consolidated management accounts”.
Bamburi, controlled 58.6 per cent by France’s conglomerate Larfage and which also owns Hima Cement in Uganda, said export volumes have also dropped this year.
It reported a 36.21 per cent drop in net profit for the six months through June to Sh1.85 billion.
Bamburi Cement #ticker:BAMB has become the latest publicly traded firm to issue a profit warning for the period to December 2017, blaming political uncertainties, interest rate cap and drought conditions earlier in the year.
The country’s largest cement maker by market share said its full-year net earnings will fall by at least a quarter compared to last year “based on preliminary assessment on the unaudited consolidated management accounts”.
This means net income for 2017 will not surpass Sh4.42 billion since it posted Sh5.89 billion last year.
“The expected decrease is mainly attributable to weaker performance of business as a result of contraction of the cement market partly due to poor private sector credit growth, drought conditions together with effects of pre- and post-election periods,” the firm, which is listed on the Nairobi Securities Exchange, said in a notice to investors on Thursday.
Bamburi, controlled 58.6 per cent by France’s conglomerate Larfage and which also owns Hima Cement in Uganda, said export volumes have also dropped this year. It reported a 36.21 per cent drop in net profit for the six months through June to Sh1.85 billion.
Standard Chartered Bank #ticker:SCBK and Industrial gas manufacturer BOC Kenya #ticker:BOC are some of the NSE-listed firms which have already issued a profit warning.
