Cement manufacturer CIMERWA has announced the 2023 financials, recording a net revenues of Rwf103.0.bn, reflecting a 11.9 percent increase in revenues from the previous year.
The announcement of increased revenues comes just less than a month after Rwanda’s leading cement producer ceded majority of the shares to National Cement Holdings Limited (“National Cement”), one of the largest cement manufacturers in East Africa, which acquired 99.94 percent of CIMERWA last month.
According to John Bugunya, Chief Finance Officer of CIMERWA Plc, the improved performance is a result of deliberate efforts to boost production and expanding the market to encompass the region.
“We are pleased to report that our revenue in 2023 was Rwf103.0.bn, which is 11.9 percent above the previous year. This performance is mainly attributed to the optimization of our production processes, cost savings initiatives and a revamped route-to-market model for both our domestic and export markets,” said Bugunya, while announcing the cement producers’ year-end results.
“Our Profit Before Tax (PBT) stood at Rwf20.1bn, a significant improvement of 19.2 percent compared to the prior year. This is attributed to declining finance costs in line with the reducing debt facility as the loans got repaid and cost management initiatives resulting in a lower cost of production,” Bugunya added.
“The performance drove our Earnings Per Share (EPS) up to Rwf22.21, an improvement from Rwf 18.74 in the prior year which is an increase of 18.5 percent,” Bugunya added.
Rwanda’s GDP is projected to grow by an estimated 7 percent in 2024 driven by increased economic activities across all sectors of the economy-. We are optimistic that growth will spur growth in the construction sector.
The company is servicing a healthy pipeline of major infrastructure projects such as the New Bugesera International Airport and the refurbishment of the Amahoro Stadium, amongst others.
In addition, there is execution of our route-to-market strategy, the optimization of selling prices as well as distribution channels for both domestic and export markets.
James Oduor, CEO of CIMERWA Plc reiterated the companies plan to increase profitability going forward, particularly by doubling down on domestic and export markets.
“We are very proud of this past year’s financial performance. we remain very optimistic that the optimization of selling prices as well as distribution channels for both domestic and export markets will translate to an even better performance in the coming year,” Oduor said.
“Sustainability remains a integral part of our Business, we have put in place a strategy and roadmap to guide actions around ESG such as environmental protection and carbon footprint reduction. In our journey towards Net Zero in the long term, we are building on the solid progress made over the last years, including reduction of carbon dioxide emission per tone of cement produced by over 20 percent,” he added.
Oduor said that this was made possible by efficient delivery of key levers of the decarbonization strategy which include reducing clinker factor, increasing coal substitution with usage Alternative Fuels such as biomass and tapping into renewable energy solutions,”
“This good performance reflects our adaptability to changing market dynamics, unwavering commitment to high production standards, responsiveness to the evolving needs of our valued customers. It’s a testament to our belief that true
growth is inclusive and rooted on sustainability,”
“This achievement is the result of a joint endeavor beginning with our dedicated skilled staff who work tirelessly contribute to this company, alongside a proficient and devoted board of directors and our supportive stakeholders. We remain steadfast in our commitment to continually deliver superior value to our customers, shareholders, and the nation as whole all while fulfilling on our promise to continue strengthening Rwanda,” he added.
Established in 1984, CIMERWA Plc has 40 years’ experience as Rwanda’s first and only integrated cement manufacturer. The company’s production plant is located in Bugarama, Rusizi District near the Southwestern border of Rwanda.