East African Portland Cement (EAPC) has made a remarkable turnaround, posting a Sh35 million profit for the six months ending December 2023, reversing a half-year loss of Sh720.7 million. This positive shift is attributed to increased sales and a growing market share, as EAPC gained ground over key competitors in the cement industry.
The company reported that its revenues nearly doubled to Sh3.2 billion compared to Sh1.8 billion the previous year. Cement consumption in the country rose by two percent to 4.6 million tonnes, and EAPC’s unit sales grew by 56 percent over the period. This surge indicates EAPC’s successful strategy in gaining market share from rivals like Mombasa Cement and Bamburi Cement, the latter recently acquired by Tanzania’s Amsons Group.
EAPC linked the sales growth to improved production efficiency and strategic pricing adjustments. According to the company’s statement, revenue increased by 79 percent year-on-year, driven by enhanced plant reliability and optimal route-to-market strategies.
The Sh1 billion profit for the year ending June 2023 was largely due to gains from the company’s fresh asset valuation, which translated to a Sh3 billion boost. The latest profit swing further extends EAPC’s bullish performance.
In a significant move, the cement manufacturer declared a dividend of Sh1 per share — the first in 13 years — after posting a full-year profit of Sh1 billion. This declaration sparked a 377 percent rally in the firm’s shares, pushing them to Sh33.50 apiece and making them the top-performing stock on the Nairobi Securities Exchange over the past six months.
Looking ahead, EAPC has raised its profit outlook for the full year. The company recently completed a comprehensive technical audit of its plant and developed an investment plan aimed at maximizing the installed capacity’s utilization in the second half of the financial year.
With its continued focus on production efficiency and market expansion, EAPC is poised to strengthen its position in Kenya’s competitive cement industry.
