Cimerwa posts 11.9% revenue increase in 2022/23 period

Cimerwa PLC, a leading cement manufacturer in Rwanda, has announced impressive financial results for the 2022-23 financial year, with a revenue growth of Frw103.0 billion, marking an 11.9% increase from the previous year. In a recent interview with CNBC Africa, the CEO of Cimerwa, James Oduor, shared insights into the company's successful performance and strategic initiatives. Oduor attributed the positive results to the dedication and hard work of the employees, as well as a focus on product quality, customer service, safety, and stakeholder management. The company reported a profit after tax of Frw15.6 billion, up by 18.5% from the prior year, and an earnings per share of 22.21, representing an 18.5% increase. Oduor highlighted that Cimerwa's success was driven by operational excellence, innovation, and sustainability initiatives. Despite facing challenges such as currency devaluation and cost inflation, the company effectively managed its input costs through diversification of distribution channels, proactive cost management, and dynamic pricing strategies. Cimerwa's robust financial performance has attracted investor interest, with the company paying dividends of $10 million in the previous financial year. However, the decision on dividend payouts for the current year is pending the completion of an ongoing transaction. Oduor expressed optimism about meeting market demands, with the company operating at over 92% capacity utilization and serving both the domestic and regional markets. Regarding competition in the cement industry, Oduor welcomed the entry of a new player into the Rwandan market, emphasizing the importance of fair trade for business growth. He noted that Cimerwa has been able to coexist with products imported from neighboring countries like Tanzania, Kenya, and Uganda. The CEO also highlighted the company's focus on innovation, showcasing new products like Surewall cement, tailored for specific construction needs. Sustainability lies at the core of Cimerwa's business strategy, with a strong commitment to environmental protection and carbon footprint management. The company aims to set new benchmarks in sustainability and has achieved significant reductions in carbon dioxide emissions. Through initiatives like tree planting and the use of alternative fuels, Cimerwa continues to lead in environmental stewardship. One of the major milestones for Cimerwa was the recent acquisition by Devki Group, a conglomerate with extensive experience in the cement industry. The partnership with Devki Group is expected to bring growth opportunities, financial resources, and technical expertise to Cimerwa. With Devki Group's regional network and solid footprint, Cimerwa aims to accelerate its vision of becoming the largest cement producer in the Great Lakes region. Looking ahead, Cimerwa plans to fully repay its debts by August this year, as it transitions to a net cash position from a previous net debt position. The strong balance sheet positions the company for future growth and expansion opportunities. The acquisition by Devki Group and the focus on innovation and sustainability are set to drive Cimerwa's success in the coming years, solidifying its position as a key player in the regional cement industry.