Kenya: EAPCC expects sharp drop in full-year profit
East Africa Portland Cement Company (EAPCC) expects its profit for the financial year that ends in June 2014 to drop by at least 25% compared to the preceding year’s performance, in which it made US$19.3m in profit. The company has issued a profit warning, attributing the expected dip in profit to reduced export sales and loss of market share in Kenya and rising costs.
EAPCC has been hit by inefficiencies and business disruptions brought by shareholder disputes. The government, which has a 52.3% stake in EAPCC and Lafarge, which owns a 41.4% stake, have fought to control the cement firm. The latest battle has seen the government report Lafarge to the Competition Authority for its cross ownership in EAPCC and its rival, Bamburi Cement.