Kenya's Portland Cement issues profit warning
25 February 2016, 22:48
Nairobi - East African Portland Cement expects its profit to
slide by more than a quarter in the financial year ending June 30 citing
year-earlier gains on land sales, it said on Thursday.
"The unrealised fair value gain on investment property and
the gain on disposal of land will not recur this financial year," Portland
said in a statement.
The company's pre-tax loss widened to 745.02 million
shillings ($7.33 million) in the first half on higher finance costs and foreign
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Portland has foreign currency-denominated debt, meaning it
faces higher repayments when the shilling weakens.
It said demand for cement was expected to remain strong due
to numerous, ongoing infrastructure projects, but cautioned that an oversupply
in the local market would weigh on prices in the short to medium term.
In response, Portland said it would control costs and
expected a technical support agreement it has entered into with Lafarge Holcim
to boost its operations.