Bamburi Cement's net loss more than doubled to Sh905 million in the financial year ended December 2024 on the back of foreign exchange losses linked to the sale of its Ugandan subsidiary.
The cement maker, which was acquired by Tanzanian conglomerate Amsons Group in December last year, saw its net loss widen from a Sh399 million net loss posted a year earlier.
Bamburi said the loss was due to a Sh1.43 billion foreign exchange loss booked on cash held from the sale of Hima Cement.
The Cement-maker early March last year completed the sale of its 70 percent stake in Ugandan subsidiary, Hima Cement, for an estimated $84 million (Sh10.88 billion) to a consortium of Sarrai Group and Rwimi Holdings.
Bamburi’s turnover fell to Sh21.9 billion last year from Sh22 million a year earlier but the forex losses saw operating profit drop to Sh700 million from the prior year’s Sh1.02 billion.
“Turnover was flat compared with the prior year attributed to contraction in the market demand and challenging domestic environment, heavy rains, floods, and unrest during the year,” said Bamburi in a commentary accompanying the financial results.
Bamburi has not declared a final dividend on the back of the loss. However, during the financial year, it paid a special dividend of Sh18.25 per share amounting to Sh6.63 billion related to the sale of Hima.
Swiss multinational company Holcim formally exited Kenya last year after successfully selling its 58.6 percent stake in Bamburi to Amsons Group. Holcim received cash proceeds of about $100 million (Sh12.97 billion) from the transaction.
Bamburi was majority-owned by Holcim through two investment vehicles—Fincem Holding Limited and Kencem Holding Limited—with a combined stake of 58.6 percent.
Amsons buy of Bamburi was made via the conglomerate’s subsidiary and investment vehicle, Amsons Industries (K) Ltd. Amson received the financial backing of KCB Group.
The Tanzanian firm completed the deal after businessman Benson Ndeta-owned Savannah Clinker Limited made a counter-offer but later pulled out. Holcim had in the prior year sold its 65 percent stake in Mbeya Cement Company in Tanzania to Amsons.
Bamburi has changed hands several times since it was founded in 1951 by Felix Mandl, an Austrian businessman.
