Bamburi to pay Sh1.3bn dividendWednesday April 27 2022
Bamburi Cement Plc #ticker:BAMB has announced Sh1.3 billion in dividend for the year ended last December after increased sales lifted its profit by 22.2 percent.
The firm has proposed to grow its dividend 19.3 percent to Sh3.58 per share compared with Sh3 per unit, or a cumulative Sh1.1 billion, which it paid shareholders in the previous year.
Bamburi’s net earnings increased to Sh1.38 billion from Sh1.13 billion the year before, it announced on Tuesday, citing increased sales and cost-cutting measures.
The performance came in a year cement consumption in Kenya jumped 23.73 percent to 9.13 million tonnes with manufacturers raising production 24.04 percent to 9.27 million tonnes, according to the Kenya National Bureau of Statistics.
The publicly-traded firm, which also has operations in Uganda, said sales rose 18.62 percent to Sh41.38 billion from Sh34.88 billion a year earlier.
“This significant increase [in revenue] was driven by volume growth in Kenya and Uganda on account of strong performance in retail and key accounts segments. This also reflects the continued economic recovery from the impact of the Covid-19 pandemic,” Bamburi’s board chair John Simba said in a statement.
“The group’s overall average selling price improved compared to the prior year on account of Kenya’s higher proportion of premium products sales.”
The largest manufacturer of cement in East Africa joined its peers in raising retail prices for the key construction material, citing increased cost of operation.
Operating costs in 2021 bumped 18.25 percent to Sh39.17 billion despite the firm implementing “robust cost management through various cost initiatives and operational efficiencies”.
The main raw materials for cement are generally extracted from limestone whose reserves are largely available locally.
Bamburi — controlled 58.6 percent by France’s Lafarge through Fincem Holding and Kencem Holding — said its expenses were pressured upwards by the increased cost of coal, power, imported clinker and fuel prices.
Bamburi sees further growth in cement demand this year driven by “sustainable housing projects and significant investments in infrastructure projects” in Kenya and “greater investment in public infrastructure, especially in the oil industry” in Uganda.
The firm on February 1 signed a power purchase deal with MOMNAI Energy to set up two solar plants for its factories in Mombasa and Nairobi, projecting the plants will account for about 40 percent of its power supply on completion.