BUSINESS

Huge Tax Payout In Uganda Guzzles Bamburi Cement Profit

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Bamburi Cement Managing Director Mr. Mohit Kapoor.
Bamburi Cement Group Managing Director, Mr. Mohit Kapoor, says the company remaines committed to deliver strong results. (Photo: Courtesy)
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Bamburi Cement PLC as defied the challenging economic environment in the first half of this year, increasing its pre-tax profits to Ksh621 million, up from Ksh124 million in the first half of 2022. The significant increase was driven by top-line growth and cost containment measures implemented during the review period.

Meanwhile, a tax settlement in Uganda hit Bamburi Cement’s net profit, which dropped to Ksh88 million from Ksh95 million recorded in the first half of 2022.  The significant rise in the profit before tax led to a 260% increase in cash generated from operations to Ksh2.8 billion, from Ksh1.8 billion for the same period in 2022.

Bamburi Cement Group Managing Director, Mr. Mohit Kapoor, noted that despite the high inflation and the weakening shilling, which impacted on production costs, the company remained committed to deliver strong results.

“The 2023 first-half performance is a clear demonstration of our reliance, adaptability, customer focus and operational efficiency. We remain consistent in providing quality products and services through innovation to bolster topline growth as well as maintaining effective cost management measures that have resulted in business stability even with the unforeseen challenging occurrences,” Mr Kapoor noted.

Bamburi Cement is Kenya’s biggest cement manufacturer with over 30% market share.

On the outlook, Mr Kapoor remains optimistic, saying Bamburi Cement is well positioned to remain profitable as the company continues to execute its operational strategies and commercial excellence to enhance positive results growth.

Bamburi Cement Group Chairman, Dr John Simba, said: “As a market leader, our vision and business strategies remains top-notch to deliver quality product and services while ensuring shareholder value. We remain steadfast in our efforts to drive positive performance in the second half of 2023.”

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Written by
BILL YAURA -

Bill Yaura is a Correspondent for Business Today. He can be reached on email: [email protected]

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