East African Portland Cement has issued a profit warning after it sank deeper into loss owing to higher financing costs and forex losses.
EAPCC reported a net loss of Sh531 million for the half year ended December compared to an after tax loss of Sh65.3 million a year earlier.
“The forex loss together with the finance costs and tax credit amounted to Sh235 million compared to an overall net gain of Sh314 million in the previous period thereby resulting to an after tax loss of Sh531 million,” said EAPCC’s company secretary Sheila Kahuki in a statement.
The cement maker, whose last year’s twelve month performance was boosted by a one-off gain from sale of land, expects this year’s earning to drop by at least 25 per cent. Management said it also expected unrealized losses from its investment portfolio, underlining the harsh economic environment companies were operating in last year.