As he announced the cement producers’ year-end results, John Bugunya, the Chief Financial Officer of CIMERWA Plc disclosed that the performance is mainly attributed to the optimization of production processes, cost savings initiatives and the effective execution of route-to-market strategy for both domestic and export markets.

“Our Profit Before Tax stood at Rwf16.9 billion, a significant improvement of 212% 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,” said Bugunya.

“The performance drove our Earnings Per Share [EPS] up to Rwf18.7, an improvement of 220% compared to last year’s EPS of Rwf5.9. Following this strong performance, the Board of Directors recommended a dividend payout of Rwf10.5 billion, representing 80% of Profit After Tax, subject to shareholder approval at the next Annual General Meeting,” he added.

Rwanda’s GDP is projected to grow by an estimated 7% in 2023 driven by increased economic activities across all sectors of the economy in the post Covid-19. This bodes well for the construction industry.

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. In addition, it is strengthening strategic route-to-market channels to ensure that the Company maintains its leadership position in the domestic and relevant export markets.

“This past year’s financial results have been remarkable. We now have a healthy balance sheet enabling us to give a good return to shareholders with the Rwf10.5 billion dividend payout. 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,’’ said Albert Sigei, CEO of CIMERWA Plc.

"We are also consolidating our strategies and leadership in other critical areas such as Environmental and Social Governance (ESG) in line with the United Nations Sustainable Development Goals (SDGs). In this regard, the Company has put in place a strategy and roadmap to guide actions around ESG such as environmental protection and carbon footprint reduction.

In our journey towards Net Zero in the long term, we are building on the solid progress made over the last 3 years, including reduction of carbon dioxide emission per ton of cement produced by over 20%. 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,” added Sigei.

“The good result in this financial year demonstrates CIMERWA Plc’s resilience in the face of a challenging environment and its commitment to sustainability. This has been made possible by a collective effort that starts from the passionate skilled staff who work vigorously for this company, a competent and dedicated board of directors and our supportive stakeholders. We stay committed to keep delivering on the promise made to our customers, shareholders, and the country at large to continue STRENGTHENING RWANDA.”

About CIMERWA

CIMERWA Plc is listed on the Rwanda Stock Exchange and is a subsidiary of Johannesburg Stock Exchange-listed PPC Cement Limited.

Established in 1984, CIMERWA Plc has over three decades worth of experience and is Rwanda’s first and only integrated cement manufacturer. The firm’s production plant is located in Bugarama, Rusizi District near the Southwestern border of Rwanda. It is the only integrated cement company in Rwanda that does the full value chain of cement production i.e. mine raw materials, produce the clinker concentrate, pack and sell cement.

CIMERWA is focused on the journey of Strengthening Rwanda in a pursuit to lay strong foundations for future generations. It has been delivering on that by minimizing any adverse impact of its operations on the environment and society, supplying cement to key projects such as the BK Arena, Prime Minister’s office, various roads and to MINEDUC for construction of more than 20,000 classrooms.

CIMERWA is the only manufacturing company in Rwanda with IMS ISO certification, an Integrated Management System (IMS) that merges the three ISO standards into one system: Quality Management (ISO 9001), Environmental Management (ISO 14001) and Occupational Health & Safety Management (ISO 45001) systems.

This is an assurance to customers that the Company offers premium quality products and to stakeholders, and that sustainable business practices are a key focus.

CIMERWA Plc is committed to building strong partnerships with leaders and members of the local community. In the process, the firm has helped set up several initiatives geared at improving the livelihoods of the people. These include a nursery and primary school, medical clinic, a market, a tailoring workshop, and providing them with clean, piped water among many others.