Kenya: Lafarge Bamburi Group has posted a 13% drop in its pre-tax profit to stand at US$43.9m for the six months ending 30 June 2012. The group's operating profit was down by 9% to US$42.7m. Both were negatively impacted by continued volatility of global fuel prices, resulting in higher raw material, transport and power costs.
This was further aggravated by the removal of a government power subsidy in Uganda that led to a 70% increase in power prices, which affected the company's Ugandan subsidiary Hima Cement.
Lafarge Bamburi's turnover rose by 17% percent to US$228m, while cash generated from operations during the period under review amounted to US$60.6m, 33% higher than what was generated in 2011.
"The regional cement market will continue to be vibrant," said the company in a statement. "The focus will be on retaining the upward trend of revenue growth. The group will continue to capitalise on progress made in its cost control measures to cushion the top line."