Largest cement maker in Kenya by share Bamburi has announced it suffered a 36.21 per cent drop in profit to Sh1.85 billion from Sh2.9 billion a year earlier in half-year net profit for the period ended June 30.
The Nairobi Securities Exchange listed firm attributes Management attributes the decline to a difficult business environment in Kenya.
Bamburi, majority owned by French conglomerate Larfage, said private sector investment slowed in the review period, hitting the individual home builder segment hardest.
Bamburi reported Sales revenue drop to Sh17.54 billion from Sh19.11 billion last year, an 8.21% drop.
Consequently, the cement maker has more than halved interim dividend payout to shareholders.
Shareholders will get Sh2.50 interim dividend per share, 58.83 per cent less than the firm paid 12 months ago.
Bamburi also owns Hima Cement Ltd in neighbouring Uganda.
Uganda however, enjoyed better market conditions in both domestic and export markets with Hima recording a good performance.
Bamburi nevertheless hopes that the Kenyan market will rebound in the last quarter while the Ugandan market is expected to continue performing well in line with the projected growth in both the domestic and regional markets.
“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,” managing director Bruno Pescheux said in a statement.