Rwanda’s cement manufacturer, CIMERWA Plc, registred Rwf92.1 billion in 2022, which is 37% above the previous year, mainly attributed to the optimization of production processes, cost savings initiatives and the effective execution of route-to-market strategy for both the domestic and export markets.
John Bugunya, the company’s CFO said profit before tax stood at Frw 16.9 billion, a significant improvement of 212% compared to the prior year.
This was on account of the operating profit improvement driven by higher sales volumes supported by price optimization, cost management initiatives resulting in a lower cost of production, and declining finance costs in line with the reducing debt following voluntary early loan repayment during the year.“
The performance drove our Earnings Per Share (EPS) up to Rwf18.7, an improvement of 220% compared to last year’s EPS of Rwf5.9, he said.
“Following this strong performance, the Board of Directors recommended a dividend payout of Frw 10.5 bn, representing 80% of Profit After Tax, subject to shareholder approval at the next Annual General Meeting,” John said.
Rwanda’s GDP is projected to grow by an estimated 7% in 2023 driven by increased economic activities across all sectors of the economy post-covid-19.
This bodes well for the construction industry. 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, it is strengthening strategic route-to-market channels to ensure that the Company maintains its leadership position in the domestic and relevant export markets.
“This past year’s financial results have been remarkable. We now have a healthy balance sheet enabling us to give a good return to shareholders with the Rwf10.5 billion dividend payout,” said Albert Sigei, CEO of CIMERWA Plc.
“We are optimistic that further improvement in operational performance and the solid foundation laid so far will translate to even better performance going forward. We hope to see an improved business environment after the recent global challenges,’’ said Sigei.
‘’We are also consolidating our strategies and leadership in other critical areas such as Environmental and Social Governance (ESG) in line with the United Nations Sustainable Development Goals (SDGs),” he added.
In this regard, the Company has 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 three years, including reduction of carbon dioxide emission per ton of cement produced by over 20%,” he noted.
He said this has been made possible by efficient delivery of key levers of a decarbonization strategy which include reducing clinker factor, increasing coal substitution with the usage of alternative fuels such as biomass and tapping into renewable energy solutions.
The good result in this financial year demonstrates CIMERWA Plc’s resilience in the face of a challenging environment and its commitment to sustainability. T
This has been made possible by a collective effort that starts from the passionate skilled staff who work vigorously for this company, a competent and dedicated board of directors and supportive stakeholders.
“We stay committed to keep delivering on the promise made to our customers, shareholders, and the country at large to continue STRENGTHENING RWANDA,” Sigei added.