NOTHING TO BAMBOOZLE BAMBURI CEMENT

There was nothing in the first half of this year to bamboozle Kenya's Bamburi cement into thinking all is well; instead, there was enough to sweat over.

First, there was 8.78% drop in total income to Kes 17632m dragged there from lower 8.25% decline in core turnover to Kes 17535m by 55.6% drop in investment income to Kes 97m.

Secondly, operating cost refused to decrease at least in step with income drop going down instead by only 0.55% to Kes 14879m.

This resulted in 36% decrease in operating income to Kes 2656m.

Then finance cost rose by 55.6% to Kes 28m leaving only the decline in Other losses to Kes 53m from Kes 77m the only hope raiser through the six months.

Bamburi's CEO, Bruno Pescheux put it all to rather tough operating conditions in Kenya; slump in construction; delays in some infrastructure projects and drought.

It could in fact have been worse but good market conditions in neighbouring Uganda.

Cost pressures came from higher coal prices; high cost of power and lower cash deposits at lower interest rates not to talk of lower foreign exchange gains.

Meanwhile Bamburi cement retains its optimism and is continuing to ensure its production capacity expansion projects in Uganda and  Kenya are ready for commissioning mid next year while phase two is also on the drawing board.

But then, can shareholders smile to the bank come year end? Let's wait and see.

BAMBURI CEMENT Kesm. Half year.
                                2017.             2016
Total income       17632.           19329
Core turnover.     17535.           19111
Operating cost.   14879.           14962
Operating profit.   2656.              4149
Investment income. 97.                 218
Other gains.          (53).                 (77)
Finance cost.            28.              .  18
Profit before tax  2692.              4272
Profit margin %     15.3.                22.1

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