Cimerwa announces strong full-year earnings performance

Simeira PLC, a leading cement manufacturer in Rwanda, has recently announced a remarkable 179% increase in profit before tax for the full year, showcasing a strong financial performance despite the challenges posed by the COVID-19 pandemic. In a recent interview with CNBC Africa, Albert Sigei, the CEO of Simeira PLC, shed light on the factors contributing to the company's success and outlined their strategic plans for the future. Sigei attributed the exceptional results to the cohesive teamwork across all levels of the organization, from the board to management and staff, emphasizing the clear direction, strategy, and purpose that guided their operations throughout the year. One of the key drivers behind Simeira's growth has been the robust growth in the construction industry in Rwanda, with the market expanding by more than 20% last year. Despite the challenges posed by the pandemic, Simeira managed to maintain its market share and explore new channels, including exports, which saw a significant increase of over 35% compared to the previous period. This, coupled with the government's interventions in the sector, has led to a 7% growth in the company's top line. Furthermore, Sigei emphasized the importance of liquidity and cash flow management, highlighting the company's focus on working capital optimization. With cash reserves of over $14 million and retained earnings exceeding $4 million, Simeira has positioned itself well to navigate the uncertainties in the market and drive sustainable growth. The CEO also discussed the company's investment strategy, noting that the accumulated reserves had significantly increased to $4.2 billion, allowing Simeira to consider potential investments in capacity expansion and dividend payouts in the future. With a healthier balance sheet and a clear path to debt repayment by 2024, Sigei expressed confidence in Simeira's ability to deliver value to its shareholders. Looking ahead, Sigei outlined the key focus areas for the company in the next 12 months, including capitalizing on the growth opportunities in the domestic market and expanding their presence in export markets. With a positive outlook for the construction sector and major infrastructure projects on the horizon, Simeira is poised to capitalize on these developments and drive further financial performance. Addressing concerns about the stock performance on the Rwanda Stock Exchange, Sigei acknowledged the need for increased market understanding of Simeira's strategy and performance. While the stock price may not fully reflect the company's potential at the moment, he remained optimistic about the future trajectory and expected a shift in investor sentiment as the market became more familiar with Simeira's business model. In conclusion, Simeira's impressive earnings growth, coupled with a strategic focus on operational efficiencies, cost management, and market expansion, positions the company for continued success in the competitive cement industry. With a strong leadership team, a clear growth strategy, and a commitment to stakeholder value, Simeira PLC is set to navigate the challenges and opportunities in the market with confidence and resilience.