CIMERWA has announced that it will pay out Rwf10.5 billion in dividends to shareholders, following a record Rwf92.1 billion total revenues in 2022, a 37 per cent increase from Rwf67.4 billion in 2021.
Following a strong performance in Earnings Per Share of Rwf18.7, representing 220 percent increase from Rwf5.9 last year, John Bugunya, the company’s Chief Finance Officer said the board of directors agreed to pay 80 percent of Profit After Tax as dividends, subject to shareholder approval at the next Annual General Meeting.
The company registered Rwf16.9 billion Profit Before Tax in 2022, an improvement of 212 percent 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,” Bugunya noted.
Commenting on the development, Albert Sigei, CEO of CIMERWA Plc, said that it is against a healthy balance sheet that the company is able to give good returns to shareholders.
"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.
The cement manufacturer floated 100 per cent of its shares constituting 703,219,520 shares on Rwanda Stock Exchange in 2020. Of these, 49 percent was available for trading through free float.
It is also a subsidiary of Johannesburg Stock Exchange-listed PPC Cement Limited.
In a journey towards achieving carbon Net Zero in the long term, we are building on the solid progress made over the last 3 years, including a reduction of carbon dioxide emission per ton of cement produced by over 20 per cent.
"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 explained.
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.
The firm remains committed to meeting its full potential as it has a production capacity of 600,000 tonnes, and in the first half of 2022, it sold more than 275,000 tonnes while in 2021, it sold 520,000 tonnes.
According to data, 80 percent of production serves the domestic market while 20 percent is exported. Its production plant is located in Bugarama, Rusizi District.