East African Portland Cement profit falls 68.6% to KSh1.58bn despite 28% jump in sales

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Updated 31 October 2026

East African Portland Cement profit fell 68.6% to KSh1.58bn in the year to June 2026, down from KSh5.02bn a year earlier, even though the Athi River cement maker sold far more cement. The board has not recommended a dividend, so shareholders will get nothing for the year.

The results, released on Friday, 30 October 2026, show the drop came from two places: much smaller paper gains on the company’s land and buildings, and an operating business that slipped into a loss as energy and transport costs climbed.

Sales up, margins down

Revenue rose 28.1% to KSh9.07bn from KSh7.08bn. Cement production went up 30% and sales volumes rose 29%, a sign that the plant is running harder after years of stop-start output.

Gross profit improved 15.5% to KSh1.20bn from KSh1.04bn, but the gross margin narrowed by 1.1 percentage points. The company said higher energy costs and logistics expenses pushed up what it costs to make and deliver each bag.

Below the gross line, the picture worsened. The company posted an operating loss of KSh52.4m, against an operating profit of KSh1.64bn the year before. It linked part of the rise in expenses to its ongoing business reorganisation.

Property gains halve

EAPCC owns large tracts of land around Athi River, and revaluing that land has propped up its earnings in recent years. Fair value gains on investment property fell 50.9% to KSh1.91bn from KSh3.90bn, which explains most of the fall in the bottom line.

Profit before tax dropped 66.1% to KSh1.88bn from KSh5.53bn. Earnings per share fell to KSh17.55 from KSh55.82.

Cash also got tighter. Operating activities used KSh321.3m, compared with an inflow of KSh242.7m a year earlier, and cash and cash equivalents slipped 5.2% to KSh648.6m. Total assets rose 3.3% to KSh51.96bn.

No dividend as it saves for expansion

The board chose to keep cash for capacity expansion, betting that road, housing and other infrastructure projects will keep cement demand strong over the medium term. Management said its priorities are to restore operating profit through better plant efficiency and cheaper sourcing of inputs.

That expansion story has been building for months. Earlier this year, Kalahari Cement pledged a US$200m expansion as part of a revamp of East African Portland Cement. Rivals are moving too: Bamburi is preparing to break ground on its KSh32bn Matuga clinker plant, and Devki plans a new cement plant in Nyeri, which traders expect to push prices down.

More competition and new capacity could squeeze prices just as EAPCC’s costs are rising, which is why investors will watch whether the operating loss turns around in the next set of results. EAPCC trades on the Nairobi Securities Exchange; see our full list of NSE-listed companies by sector for its peers.

FAQ

How much profit did East African Portland Cement make in 2026?

EAPCC made a profit after tax of KSh1.58bn in the year to June 2026, down 68.6% from KSh5.02bn in 2025.

Will EAPCC pay a dividend for 2026?

No. The board did not recommend a dividend and said it will conserve cash for capacity expansion.

Why did EAPCC’s profit fall when sales rose?

Fair value gains on its investment property halved to KSh1.91bn, and higher energy, logistics and reorganisation costs turned its operating result into a KSh52.4m loss.

What brands does East African Portland Cement sell?

EAPCC sells cement under the Blue Triangle brand, including Ordinary Portland Cement, Pozzolanic Portland Cement and Green Triangle masonry cement.