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East African Portland Cement (Portland), a prominent cement company led by Kenyan business executive Edwin Kinyua, has unveiled its financial performance for the first half of the 2024 fiscal year, revealing a noteworthy loss of $4.9 million. This is attributed to rising input costs and the depreciation of the Kenyan shilling against the US dollar.
According to the recently published financial report, Portland recorded a net loss of R720.8 million ($4.91 million) by the end of the first half of the 2024 fiscal year, indicating a significant 10.1-percent improvement compared to the Ksh801.97-million ($5.45 million) net loss reported in the same period of 2023.
The reduction in Portland’s net loss in the current reporting period is attributed to increased revenue from cement sales, coupled with higher tax credits and reduced expenses. Portland’s revenue experienced a robust 22.8-percent surge to Ksh1.84 billion ($12.5 million), while the cost of sales mirrored this increase, leading to a 22.7-percent rise in gross loss to Ksh319.1 million ($2.17 million).
Deep dive into financial results and growth strategies
In the commentary accompanying the financial results, Portland highlighted that the boost in revenue was driven by enhanced cement production following the completion of the initial phase of plant refurbishment. However, the company also acknowledged an uptick in gross loss due to elevated input prices fueled by increased energy costs and the depreciation of the Kenyan shilling against the US dollar.
Despite these challenges, Portland remains optimistic about its growth trajectory, pointing to progress in the implementation of its strategic plan. The company anticipates a positive impact from the ongoing cement price revision in the industry, considering it a pivotal factor in regaining profitability, particularly as it finalizes its plant refurbishment program.
Edwin Kinyua’s leadership at East African Portland Cement
East African Portland Cement, a significant player in Kenya’s construction sector, has held the position of the country’s leading cement manufacturer since 1933. While ranking third in market share behind Bamburi Cement and Mombasa Cement Limited, Portland has demonstrated resilience in the face of operational challenges.
Edwin Kinyua, a seasoned business executive with over 20 years of experience, assumed the roles of Chairman and Director of East African Portland Cement in September 2018, with his contract renewed in December 2021. Formerly serving as the managing director and CEO of Kenya Wine Agencies Limited (KWAL), Kinyua is lauded for steering KWAL to significant financial milestones, including doubling revenue and profitability.
Despite being the 46th most valuable company on the Nairobi Securities Exchange with a market capitalization of Ksh810 million ($5.51 million), Portland remains positive about its future prospects under Kinyua’s guidance, emphasizing ongoing strategic initiatives and favorable industry dynamics.
