A boom in construction and foreign exchange gains has helped Bamburi Cement’s net profit almost double for the six months to June. The cement manufacturer reported an 86% leap in net profits to Sh3 billion, with the management projecting an even better second half.
The company, which is controlled by France’s Lafarge, attributed the strong performance to growth in demand in its two main markets, Uganda and Kenya, cost cutting and gains in its dollar-based liquid assets due to weakening of the Ugandan and Kenyan currencies.
“We are optimistic that the business environment will remain stable in the second half of the year,” said MD Bruno Pescheux.
Pescheux said the sustained activity in the construction sector including the mega infrastructure projects like the Standard Gauge Railway, had boosted demand for cement. Bamburi has supplied more than half of the cement needs of the SGR so far.
The group turnover increased to Sh19.3 billion from Sh17.3 billion as a result of improved market conditions in both Kenya and Uganda following strong growth in the infrastructure and contractor segments, stable macro-economic indicators in both countries and strong Inland Africa export markets, the firm said.
“The outlook for the rest of 2015 is positive, with projected and continued growth in all East African economies, underpinned by a robust construction industry,” Pescheux said.
