17 May 2014

Kenya: Portland Warns of Profit Dip, Cites Stiff Competition

CEMENT maker East African Portland has issued a profit warning for the year ending June 2014 citing an expected drop in earnings due to high competition and staff costs as well as reduced export sales.

This means that its profits for the period will fall by at least 25 per cent compared to the previous financial year when it recorded a net profit of Sh2.49 billion. Last year's performance by the company was a 356 per cent profit growth having reversed 2012's loss of Sh969.7 million.

"During the year ending 30 June 2014, the company has faced challenges characterised by increased competition that depressed prices, loss of market share due to new entrants into the local market, instability in DRC & Southern Sudan which has resulted to reduced export sales, high staff costs as well as adverse macroeconomic factors such as high interest rates and depreciation of the Kenya shilling against major world currencies," said the firm in a statement yesterday.

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