Home ECONOMY Portland Cement Reports KSh1.5 Billion HY Loss

Portland Cement Reports KSh1.5 Billion HY Loss

by biasharadigest

East African Portland Cement has posted the unaudited results for the six month period ending December 31, 2019 as follows:

• Revenue rose 8.1% y/y to KSh1.4 billion
• Cost of sales dropped 0.1% y/y to KSh1.8 billion
• Gross loss improved 26.7% y/y to a loss of Kh313.9 million
• Loss from operating activities declined 2.5% y/y to KSh1.4 billion
• Loss before tax increased 0.8% y/y to KSh1.6 billion while Loss after tax increased 24.4% y/y to KSh1.6 billion
• Loss from Cashflow generated from operations widened to KSh429.5 million from a loss of KSh158 million in 1H19
• Cash and cash equivalents closed the year at a loss of KSh1.2 billion from a loss of KSh946.8 million in 1H19

The cement maker made KSh1.575 billion loss after tax, with sales revenues up 8% to hit KSh1.48 billion. However, restructuring costs pushed administrative and selling expenses costs by 6% to hit KSh793.03 million

Furthermore, EAPCC reports that the total assets reduced by 4% from KSH36.9 billion in June 2019 to KSh35 billion in December 2019. For instance, in six months from June to December 2019 property, plant, and equipment decreased from KSh7.303 billion to KSh7.036 billion while receivables reduced from KSh3.6 billion to KSh2.8 billion.

Sale of land generated KSh1 billion.

The board failed to declare a dividend at the moment as the firm is in the midst of a restructuring process.

In 2019, the firm declared all positions redundant sacking 800 employees and 136 managers and supervisors.

Delays in appointment of the Auditor General has seen the firm postpone publishing of audited financial results for the year ended 30th June 2019.

See Also:

EA Portland Cement Delays Publication of Financial Results

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