Rwanda's largest cement manufacturer, Cimerwa PLC, reported a revenue of Rwf117.36 billion for the year 2024 ended September 30, an increase of 13.9 per cent over 2023. The firm whose financial year ends in September partly attributed the growth to the acquisition of Prime Cement assets, which it concluded earlier this year in July. As a result, the company’s profit after (PAT) tax grew 18.5 per cent to Rwf18.5 billion in the same period. ALSO READ: Cimerwa plots further capacity expansion, new markets Cimerwa’s profit before tax also stood at Rwf23.5 billion in 2024, representing a 17.1 per cent increase compared to 2023, thanks in large part to the firm’s increased gross profit as a result of cost management initiatives resulting in a lower cost of production. “This performance is mainly attributed to the optimisation of our production processes, cost savings initiatives, acquisition of Prime cement assets, and a revamped route-to-market model for both our domestic and export markets, said Mangesh Kumar Verma, the firm’s chief executive. The growth, Verma pointed out, drove Cimerwa’s earnings per share (EPS) – a financial metric that shows the portion of a company’s profit allocated to each outstanding share – up to Rwf26.33, against Rwf22.21 in 2023, an 18.6 per cent growth. According to the firm’s chief executive, the growth comes at a time when they are servicing a healthy pipeline of major infrastructure projects such as the new proposed international airport in Bugesera, among others. Cimerwa said it is also banking on the execution of its route-to-market strategy, the optimisation of selling prices, as well as distribution channels for both domestic and export markets. “We are very proud of this past year's financial performance. We remain very optimistic that the optimization of selling prices as well as distribution channels for both domestic and export markets will translate to an even better performance in the coming year,” said Devang Raval, the firm’s Chairman. Cimerwa’s gross profit also increased by Rwf4.99 billion to Rwf37.80 billion, and the gross profit margin remained flat at 32 per cent in 2024. Outlook Cimerwa says Rwanda’s projected economic growth in 2025 will support the company to boost its operations and grow its bottom and top lines further. “On the back of this, we anticipate a healthy pipeline of major infrastructural projects that give us a strong basis that the company will continue to maintain its strong market position supported by a revamped route -to market model that will see continued growth in the local and export markets.” The company reported a cash balance of Rwf8 billion by the end of September 2024. Cash flows from operations increased by Rwf13.64 billion, an increase of 53 percent mainly due to the increase in trade and other payables by 57 percent to Rwf17.55 billion.
