East African Portland Cement stock faces profit squeeze after FY 2026

Published on 10/31/2026 at 01:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

East African Portland Cement stock saw stronger production and sales in the year ended June 2026. Profitability weakened as costs and lower property gains weighed.

Profitability loses ground as volumes recover

East African Portland Cement increased production and sales in the financial year ended June 2026.
Higher energy and logistics costs pushed the company into an operating loss.
The board plans to conserve cash while targeting efficiency gains and capacity expansion.

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East African Portland Cement reported a sharp decline in profitability for the financial year ended June 30, 2026, even as cement production and sales volumes recovered. The figures were reported on Friday, October 30, by AllAfrica, citing the company's financial results.

Sales growth fails to protect earnings

Revenue rose 28.1 percent to 9.07 billion Kenyan shillings, supported by a 30 percent increase in cement production and a 29 percent rise in sales volumes. Gross profit increased 15.5 percent to 1.20 billion Kenyan shillings, but the operating result swung to a loss of 52.4 million Kenyan shillings from a profit of 1.64 billion Kenyan shillings a year earlier.

Profit after tax fell 68.6 percent to 1.58 billion Kenyan shillings from 5.02 billion Kenyan shillings. Earnings were also affected by a 50.9 percent decline in fair-value gains on investment properties to 1.91 billion Kenyan shillings. The company linked the difficult operating environment to inflation, higher energy and logistics costs, and supply-chain disruptions.

Cash preservation takes priority

Operating cash flow weakened to an outflow of 321.3 million Kenyan shillings, compared with an inflow of 242.7 million Kenyan shillings in the previous year. Cash and cash equivalents declined 5.2 percent to 648.6 million Kenyan shillings, while total assets rose 3.3 percent to 51.96 billion Kenyan shillings.

The board did not recommend a dividend for the year ended June 30, 2026, choosing to conserve cash for potential capacity expansion. Management said it would focus on plant efficiency and sourcing while seeking to benefit from infrastructure projects expected to support construction demand.

East African Portland Cement's business

East African Portland Cement manufactures cement in Kenya under the Blue Triangle brand. Its product range includes Ordinary Portland Cement, Pozzolanic Portland Cement and Green Triangle Cement, which is positioned as a lower-clinker masonry product. The company is based in Athi River and serves construction customers through bulk and bagged delivery, distributors and retailers, according to its company website.