Listed firm Bamburi Cement recorded a significant increase in its half-year Net Earnings to KSh 721 Million compared to KSh 393 Million net profit in the same period last year.
This is despite the slowdown in the building and construction industry in the first half of 2020 triggered by the coronavirus pandemic.
While group turnover declined by 13% from KSh 18.7 Billion to KSh 16.2 Billion in H1, 2020, Gross Profit rose significantly from KSh 23 million to KSh 213 million at the end of the six months period ended 30th June 2020.
The firm attributes this strong performance to swift implementation of measures has helped mitigate the adverse impact of the pandemic.
Currency gains from the Uganda subsidiary rose to KSh 116Million from a loss of KSh 61Million the previous half-year, on account of a stronger Uganda Shilling against other major currencies, including the reporting Kenya Shilling.
Financial expenses fell 24% to KSh 133Million due to reduction of an overdraft in Hima and improved cash generation with net cash balances rising to KSh 2.8 Billion from KSh 993 Million.
The jump in net earnings is also attributed to a tax credit of KSh 508 Million. This arose from the adjustment of deferred tax liability in line with the new corporate tax rate in Kenya of 25%.
Cash flow generated from operations stood at KSh 3 Billion from KSh 1.2 Billion in H1, 2019.
In its outlook, directors at Bamburi plan to continue implementing several measures to enhance business resilience and counter any declines in topline.