NAIROBI, Kenya, Oct 28 – East African Portland Cement Company (EAPCC) gross loss narrowed to Sh782 in the year ended June on reduced administrative as well as litigation costs.
EAPCC gross loss reduced to Sh782 million between June 2021 to June 2022 from Sh821 million in the previous financial period, representing a 5 per cent drop.
Loss declined despite the firm’s revenue declining by 22 per cent in the period.
“Administration and selling expenses decreased by 54% (KES 1.3B) resulting from reduction in loss from disposal of land (KCB debt settlement) and reduced litigation cost amongst others underscoring the impact of cost containment measures embarked on in the year under review,”
“The cost containment initiatives, reduction in finance cost (KES 735M) following settlement of the KCB loan, and the gains from replacement of the Kiln Shell will position the business for a period of take-off as it embarks on implementation of its 5-year Strategic Plan leveraged on its brand equity and rich history,” the firm said in its full year financial statement.
EAPCC launched a new product named Green Triangle Cement that is aimed at minimizing the cement manufacturer’s carbon emissions.
Green Triangle Cement has already received a green light from the Kenya Bureau of Standards under the strength standardization category of 22.5 even though the company has boosted its strength to over 27 to enable it to be applied in a wider variety of construction projects.
In July this year, Portland refurbished its Kiln at cost of Kes Sh500 million after 26 years, driving average RRP prices of cement down by 13 per cent in the last two months. Cement now goes as low as Sh570 from Sh630 a few weeks ago.
The Green Triangle Cement product, which is already in trade, will be applicable in preparation of mortar for brick and block laying as well as rendering, plastering and repair works.
“Our customers have for a long time being asking us to introduce an alternative product in the market,”
“This together with wide consultations and research advised the introduction of Green Triangle Cement which is more environmental friendly and will go at a lower cost than Blue Triangle Cement”, said the firm’s Managing Director Oliver Kirubai.
