Home Business & Tech Cement Manufacturer CIMERWA Upbeat After Registering Record Rwf5.4bn Profit Before Tax

Cement Manufacturer CIMERWA Upbeat After Registering Record Rwf5.4bn Profit Before Tax

by Edmund Kagire
4:55 am

CIMERWA Plc announced financial results on Thursday, reporting a record profit

Rwanda’s leading cement manufacturer CIMERWA Plc on Thursday announced its performance for the 2020/21 fiscal year, projecting a stellar year-on-year growth, driven by the ever-increasing demand for cement.

CIMERWA Plc released its final financial results for the period ended 30 September 2021. The Company posted the year record Profit Before Tax of Rwf5.4 billion, a +179 percent increase compared to the previous year.

The cement manufacturer closed the year on strong footing with revenue of Rwf67.3 billion, reflecting a 7 percent increase compared to the previous year while Profit After Tax stood at Rwf4.1 billion- a more than 111 percent increase compared to last year.

The company which was listed on the Rwanda Stock Exchange (RSE) in August last year also reported that earnings per share improved by over 111 percent, reaching 5.86, which is good news for shareholders.

Announcing the results on Thursday at Kigali Serena Hotel, CIMERWA’s Chief Finance Officer (CFO) John Bugunya said that the stellar performance was registered regardless of the effects of the Covid-19 pandemic on businesses across the globe, promising even better results in the coming year.

“We have achieved strong financial results in the year ending 30 September 2021 despite the effects of various Covid-19 lockdowns during the period,”

“This excellent performance was driven by growth in revenue as the business executed its route-to-market strategy so as sustain the dominant market share position as well as margins,” Bugunya said.

CIMERWA’s CFO John Bugunya attributed the stellar performance to the increasing demand for cement.

Bugunya also attributed the performance to prudent cost management initiatives the manufacturer implemented across the business as reflected in the cost of sales remaining flat year-on-year as well as the increasing demand for cement as construction activities fully resumed as Covid-19 relented.

The company’s Chief Executive Officer (CEO), Albert Sigei, said that reporting the results at the backdrop of the Covid-19 promises an even better year, despite the pandemic still remaining around the corner, something he shared should give shareholders confidence.

“It was a difficult year with continued Covid-19 disruptions but nevertheless, it was gratifying to see the company making a strong contribution to allow Rwanda’s critical construction activities to progress smoothly,”

“We are ready to exploit the projected growth of the Rwanda and neighboring export markets with adequate stocks and capacity in place to service the trade and major infrastructure projects,” Sigei said.

Not worried by competition

Sigei said the cement manufacturer is not bother by the entrance of competitors in the market and much cheaper imported brands, pointing out that there is enough room for all players in the quest to meet the country’s cement demands.

He said that CIMERWA will continue supporting the ‘Made in Rwanda’ strategy and will keenly take actions to defend the domestic market share and expand its exports in the region and beyond.

“These exceptional results reflect the resilience of CIMERWA Plc and the impact of the solid foundation that has been laid by the Board and Management,”

“It also confirms that we are uniquely positioned to tap into the immense growth potential in Rwanda and the Great Lakes region while confidently riding the waves of challenges brought on by the COVID-19 pandemic,” Sigei said.

Sigei said the entrance of new players in the cement industry is not a challenge given the market demand.

The CIMERWA CEO also said that in the financial year 2021, the company invested more than Rwf350m in corporate social responsibility activities aimed at empowering and improving the quality of life in the Bugarama communities surrounding the plant.

The Chief Executive Officer of RSE, Celestin Rwabukumba, said that the performance of CIMERWA reflects a positive trajectory not just for the company but for the economy in general, which is beginning to recover from the devastating effects of Covid-19.

“Now is the time to invest in shares in companies like CIMERWA, which continued to perform well regardless of the challenges presented by the pandemic,”

“This is not just encouraging for shareholders or those who wish to buy shares but it is also promising for investors who wish to come to Rwanda,” Rwabukumba said.

RSE’s Celestin Rwabukumba said the performance is good news for the market which is on a rebound from Covid-19.

Established in 1984, CIMERWA Plc was for more than three decades the country’s sole cement manufacturer, with a plant located in Bugarama, Rusizi District in the Western Province.

CIMERWA Plc listed shares on the RSE on August 3, 2020, each share trading at Rwf120, start with the 49 percent stake owned by the government, in a bid to raise a total of Rwf41.3bn.

The listing was part of the move by the government to sell its stake in the cement company, joining other shareholders that expressed an interest in exiting from the business.

Previously the government owned a stake through Agaciro Development Fund, Rwanda Social Security Board, Rwanda Investment Group and Sonarwa Holdings while the remaining stake of 51 percent is owned by South Africa-based cement manufacturers PPC.

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