East African Portland Cement (EAPC) has plunged into deep financial trouble after recording Ksh 970 million loss after tax in half year ended December 31. The loss is four times what it made same period in 2016.
In a newspaper notice, the company consoles itself through its enormous resources in the form of idle and fully mined prime parcels of land which it plans to generate value out of.
“The Board is optimistic that with the implementation of the company’s medium term plans the company will soon return back to profitability,” said Sheila Kahuki, company secretary.
She added that the company will continue with the ongoing restructuring programmes covering both operations and financial aspects of the business.
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During the period under review, revenue declined by 18% due to slow market uptake on account of prolonged political activity which dampened investment decisions slowing economic activities. This was further impacted by knock on effects of interest rates capping and prolonged drought on the general macroeconomic environment.
Increase in the cost of coal and unit cost of electricity adversely affected cost of sales, which reduced by 5% over the same period last year.
The company is betting on President Uhuru Kenyatta’s Big Four plans in his second and last leg of his term as a president to make more money.
“Future market outlook remains positive with the unveiling of the Agenda Four initiatives by the National Government where affordable housing and manufacturing are among top priorities,”
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