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Bamburi half-year net earnings down 36pc on lower sales

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A SECTION OF BAMBURI CEMENT FACTORY IN MOMBASA. FILE PHOTO | NMG

Bamburi Cement’s #ticker:BAMB after-tax profit for the six months to June 2017 fell by more than a third on reduced sales as construction activity slowed down ahead of the August polls, the NSE-listed firm said today.

The country’s largest cement maker by market share, which also owns Hima Cement Ltd in neighbouring Uganda, reported a 36.21 per cent drop in net profit to Sh1.85 billion from Sh2.9 billion a year earlier.

Sales revenue dipped to Sh17.54 billion from Sh19.11 billion last year, an 8.21 per cent drop.

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Slow business

Bamburi, majority owned by French conglomerate Larfage, said private sector investment slowed in the review period, hitting the individual home builder segment hardest.

“While the underlying business remains solid in Kenya, the market faced softening demand,” managing director Bruno Pescheux said in a statement Friday.

“However, we expect the Kenyan market will rebound in the last quarter (October-December) while the Ugandan market is expected to continue performing well in line with the projected growth in both the domestic and regional markets,” he added.

Bamburi kept a tight lid on operating costs which were flat, declining 0.53 per cent to Sh14.88 billion.

Earnings per share in the review period dropped to Sh4.39 from Sh7.15 a year ago, a 38.6 per cent drop.

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