EAPCC board does not expect June 2019 performance to be near last financial year’s profit of Sh7.79 billion.
East African Portland Cement (EAPCC) #ticker:PORT has issued a profit warning days after announcing the widening of its half year net loss by 30.7 percent to Sh1.26 billion.
The board does not expect June 2019 performance to be near last financial year’s profit of Sh7.79 billion that came as a result of booking Sh11.34 billion gain on land revaluation.
“Based on preliminary assessment of the unaudited results for the period to December 31, 2018, the full year earnings of the company are expected to decrease by more than 25 per cent compared to the year ended June 2018,” the board said in a statement.
The board adds that the expected decline is mainly due to increased input prices, a sluggish market as well as production challenges arising from tight working capital position.
As at half year ended December 2018, revenues fell by 55 percent to Sh1.37 billion from Sh3.06 billion recorded in the previous period.
This led to 66 percent increase in loss from operating activities to Sh1.4 billion.
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