EAPCC reduced its loss despite revenue falling to Sh967.6 million from Sh1.3 billion, underlining the impact of the lower costs.
The company, which last year sent its staff home and hired new ones on contract basis, cut its cost of sales to Sh1.3 billion from Sh1.7 billion.
Its finance costs also dropped to Sh101.2 million from Sh269.4 million, indicating that the company either reduced its borrowings or renegotiated the debt.
East African Portland Cement Company (EAPCC) #ticker:PORT narrowed to Sh907 million in the six months to December on reduced administrative and selling costs.
The State-owned firm had made a net loss of Sh1 billion a year earlier.
EAPCC reduced its loss despite revenue falling to Sh967.6 million from Sh1.3 billion, underlining the impact of the lower costs.
The company, which last year sent its staff home and hired new ones on contract basis, cut its cost of sales to Sh1.3 billion from Sh1.7 billion.
Its finance costs also dropped to Sh101.2 million from Sh269.4 million, indicating that the company either reduced its borrowings or renegotiated the debt.
“The yields from the business reorganisation initiatives continue to materialize,” the Nairobi Securities Exchange-listed firm said in a statement.
“The company has made significant progress in the balance sheet restructuring programme with proceeds from the sale of land expected to bridge the working capital deficit.”
East African Portland Cement cut its permanent staff by 78 percent in the year ended June 2021 as it battled a cash crisis.
The company nearly doubled its contract staff to 442 as it opted for cheaper labour. At the end of the period, its headcount comprising both contract and permanent staff had dropped from 525 to 501.
The cement firm which had earlier defaulted on a loan from one of its key lenders, forcing it to dispose of some of its idle lands to retire the debt said it is about to conclude termination of a Sh6.8 billion debt owed to the lender.
“The company is at the tail end of terminating the Sh6.8 billion bank loan and has successfully negotiated for cessation of interest in light of the progress made in settling the debt,” it said.
