Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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xxxxx wrote:heri wrote:Ericsson wrote:lochaz-index wrote:xxxxx wrote:obiero wrote:xxxxx wrote:Angelica _ann wrote:Ericsson wrote:mlennyma wrote:Ericsson wrote:Half Year Results;
Bamburi Cement declares another SHOCK decline in profit:
PBT collapsed 97% to Sh23m in HY19 from Sh722m in HY18.
Turnover was flat at Sh18.67b (a 0.56% increase)
Cash at the end of the period stood at Sh1.3b from Sh2.9b (-55%)
another ARM and E A Portland in the making
1. Higher depreciation charge from new capacity commissioned amidst flat revenue
2. Impairment of assets associated with Rwanda
3. Higher finance costs to finance capacity expansion in Uganda
4. High energy & logistics costs
5. No SGR sales
6. Closure of Uganda-Rwanda border
Looks like the new Finance Director (Grace) was cleaning the books.
I doubt it's a clean up. Looking at the challenges noted, and checking the annual report its clear the business is facing structural problems which need addressing but which may not be so easy to solve. That's why gross margins are tending towards Zero
Turnover is also showing signs of extreme trouble
So....at 72 and continuing the steep decline, is Bamburi Cement the new ARM Cement???
Whoa! The beating on this counter is a sight to behold. Currently at around 70 a piece it is trading below its 2005 lows with a seemingly unabating sell off. Is the firm staring at a loss for FY 2019?
Bamburi Cement has hit new 17 year low.
From 2002 to 2004, it rose from Sh15 to Sh126 (+740% in just 2 years). My God, Kibaki made people RICH.
will such opportunities come by again in my lifetime?
Now's your opportunity to load up on Bamburi
Effects of cement price wars. Life is short. Live passionately.
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