Bamburi Cement has issued a profit warning, preparing investors for its lowest earnings in over 10 years for the financial year ended December 2017.
The cement maker, which also issued a profit warning last year, is set for the second tumultuous year defined by a fall in profits and reduced dividend payout to shareholders when it makes the announcement in the first quarter of 2019.
In the year ended December 2017, the cement-maker profits tumbled by 67 per cent to Sh1.97 billion. The profit warning therefore means that the firm will post less than Sh1.47 billion in profit.
According to the board, the expected dimmed performance is mainly attributable to difficult market conditions, as well as escalating international energy prices in both Kenya and Uganda. It also cites increased power costs in Kenya and additional provisions, mainly receivables, in Uganda for the fall.