Tax credit lifts Bamburi profit

Bamburi Cement’s profit after tax grew to Sh721 million for the first six months of this year, helped by a Sh508 million tax credit. 

The cement maker reported Sh393 million net profit in the same period last year.

The credit arose from the adjustment of deferred tax liability in line with the new corporate tax rate in Kenya of 25 per cent.

Seddiq Hassani, the group managing director, said the improved performance was indication of the firm’s business resilience amid depressed demand due to the coronavirus-related disruptions.

“We are pleased to have delivered positive results in the first half of 2020 and we will continue to optimise on reducing production-related costs, logistics, raw materials and service to our customers to drive topline growth,” he said.

“These measures are delivering results as the group is registering cost savings and improved cash generation to counter the decline in topline.”

Turnover fell by 13 per cent to Sh16.2 billion compared to Sh18.7 billion in 2019, due to the adverse effects of the Covid-19 pandemic.

John Simba, the Bamburi chair, said the adverse impact of Covid-19 is expected to carry on into the second half of 2020.

He added that the group’s priority continues to be the implementation of necessary measures to enhance business resilience and to protect the health and safety of employees and their families during the pandemic.