Group's turnover increased by 6% from KSh 34 billion in 2013 to KSh 36 billion mainly as a result of improved market conditions in Uganda, which is expected to continue into 2015.
Commenting on the Company's results, the Board stated "We have made good progress by ratcheting up sales locally and within the region". In addition to improving market conditions in Uganda, we experienced growth in the Kenyan market, in particular in the infrastructure segment in the latter part of the year, with key projects getting off the ground. We have also seen good growth in the contractor segment, especially through selling value added products, as well as improved Exports into inland Africa with the exception of those into South Sudan.
The cost base for the year was influenced by high power prices in Kenya compared to 2013, which on a positive note started coming down in the last quarter of the year, with the commissioning of additional Geothermal power into the National Grid. In Uganda, the company successfully launched its petcoke fuel conversion at Kasese plant, which started giving it energy cost benefits, in the latter half of the year.
Commenting on the outlook for 2015, the Group Managing Director, Bruno Pescheux stated that the prospects for the industry look promising with the regional economies expected to achieve strong growth in 2015 compared to prior year, due to improved macro-economic environment in both Kenya and Uganda, characterized by single digit inflation, lower commercial bank lending and stable exchange rates.
"We are very optimistic about market growth prospects in both our domestic and inland Africa export markets and are well positioned to benefit from them. At the same time, a number of large infrastructure projects have been or are being launched in both Kenya and Uganda, which with our wide cement and concrete portfolio of brands across the region, places us in a strong position to supply. This, together with our improving cost base following the completion of a number of cost containment measures at all our plants, gives us good foundation for a robust 2015".