CIMERWA Plc registered a sharp increase in revenues.
Cement manufacturer CIMERWA Plc is set to pay Rwf10.5bn in dividends to shareholders after the seeing an increase in revenues for the financial year 2022.
Commenting on the announcement of the results, John Bugunya, Chief Finance Officer (CFO) of CIMERWA Plc said that the upsurge in revenues was a result of increased production, buoyed by cost-saving measures deployed by the firm.
“We are happy to report that our revenue in 2022 was Rwf 92.1bn, which is 37% above the previous year. This is mainly attributed to the optimization of our production processes, cost savings initiatives and the effective execution of our route-to-market strategy for both our domestic and export markets,” said Bugunya.
“Our Profit Before Tax stood at Rwf16.9bn, 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,” he added.
He pointed out that the performance drove CIMERWA’s Earnings Per Share (EPS) up to Rwf18.7, an improvement of 220% compared to last year’s EPS of Rwf5.9.
“Following this strong performance, the Board of Directors recommended a dividend pay-out of Rwf10.5 bn, representing 80% of Profit After Tax, subject to shareholder approval at the next Annual General Meeting,” Bugunya 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.
The cement manufacturer said this bodes well for the construction industry.
CIMERWA attributed the increase in revenues to new cost-cutting innovations.
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 Rwf10.5bn dividend pay-out,” 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,” he said.
Sigei said that CIMERWA is also consolidating its strategies and leadership in other critical areas such as Environmental and Social Governance (ESG) in line with the United Nations Sustainable Development Goals (SDGs).
“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 3 years, including reduction of carbon dioxide emission per ton of cement produced by over 20%,”
“This has been made possible by efficient delivery of key levers of our 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,” Sigei said.
Sigei said the entrance of new players in the cement industry is not a challenge given the market demand.
Albert added that “the good result in this financial year demonstrates CIMERWA Plc’s resilience in the face of a challenging environment and its commitment to sustainability.”
He said that this was made possible by a collective effort that starts from the passionate skilled staff who work vigorously for the company, a competent and dedicated board of directors and the 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,” he pointed out.
CIMERWA Plc is listed on the Rwanda Stock Exchange and is a subsidiary of Johannesburg Stock Exchange-listed PPC Cement Limited.
Established in 1984, CIMERWA Plc has over three decades worth of experience and is Rwanda’s first and only integrated cement manufacturer.
The firm’s production plant is located in Bugarama, Rusizi District near the Southwestern border of Rwanda. It is the only integrated cement company in Rwanda that does the full value chain of cement production including mining raw materials, producing the clinker concentrate as well as packing and selling cement.
