CIMERWA posts 220% EPS growth in the 2021/2022 period
Cement manufacturer CIMERWA registered a stronger than expected growth with earnings per share in the financial year ended September 30th growing at 220 per cent to Rwf18.7. The company will pay out Rwf10.5 billion in dividends to its shareholders. CNBC Africa’s Julius Bizimungu spoke to Albert Sigei, the company’s CEO, Albert Sigei for more.
Wed, 07 Dec 2022 15:27:27 GMT
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AI Generated Summary
- Operational excellence, including increased production and enhanced efficiency, has driven CIMERWA's impressive financial results.
- Focus on pricing optimization and cost-saving initiatives has bolstered the company's competitiveness and profitability amid external cost pressures.
- Strategic market expansion, particularly in export destinations, combined with a tailored sales approach, has led to substantial sales volume growth and future sustainability.
CIMERWA, a leading cement manufacturer, has reported a remarkable 220% increase in earnings per share for the financial year ending September 30th, reaching Rwf18.7. The company has announced a dividend payout of Rwf10.5 billion to its shareholders, showcasing its commitment to delivering value. In a recent interview with CNBC Africa, Albert Sigei, the CEO of CIMERWA, credited this stellar performance to multiple factors. Operational excellence played a crucial role, with a significant increase in production of about 100,000 tons, leading to enhanced efficiency in the cement manufacturing process. Additionally, the company focused on strengthening its route-to-market channels to provide exceptional customer service while implementing cost-saving initiatives and optimizing prices. These strategies resulted in a substantial growth in gross margins, from 26.3% to over 31%, reflecting the company's financial health. Sigei also highlighted the successful reduction of finance costs by repaying a large portion of loans during the year, leading to an improved balance sheet with approximately 20 billion Rwf in cash. The CEO emphasized the pivotal role of CIMERWA's dedicated workforce and supportive stakeholders, including shareholders, the board of directors, and the government, in driving the company's success. Furthermore, Sigei acknowledged the conducive business environment in Rwanda, which has facilitated growth amid global challenges, including the post-COVID landscape. The company's focus on pricing optimization has been instrumental in maintaining competitiveness and profitability, especially in the face of cost pressures resulting from external factors like the Russia-Ukraine conflict. By balancing various market segments and enhancing logistics efficiencies, CIMERWA has ensured a sustainable pricing strategy while meeting customer demands effectively. The expansion of export markets, including destinations like Istanbul, North Kivu, and South Kivu, coupled with a robust sales strategy tailored to different customer segments, has significantly boosted sales volumes, driving overall growth. Despite the challenging construction sector recovery post-pandemic, CIMERWA's proactive approach to market dynamics and project pipeline visibility has positioned the company for continued success. Sigei expressed optimism about the business outlook, citing Rwanda's projected economic growth of around 8% and the ongoing infrastructure projects fueling demand for cement. Addressing concerns regarding trade disruptions between Rwanda and the DRC, CIMERWA remains resilient, leveraging existing market opportunities while seeking new avenues for expansion. The CEO emphasized the importance of resolving political tensions to enhance business prospects, with a focus on exploring emerging markets for future growth.