Due to lower administrative and selling costs, the East African Portland Cement Company (EAPCC) cut its loss to Sh907 million in the six months to December. A year ago, the state-owned company posted a net loss of Sh1 billion. Despite income declining to Sh967.6 million from Sh1.3 billion, EAPCC’s deficit was decreased, highlighting the impact of reducing costs. Last year, the company sent its employees home and employed new ones on a contract basis, lowering its cost of sales from Sh1.7 billion to Sh1.3 billion.
Its financing costs fell from Sh269.4 million to Sh101.2 million, indicating that the company either lowered or renegotiated its debt. The Nairobi Securities Exchange-listed company said in a statement that “the yields from the business reorganization measures continue to materialize.” “The company has made great progress in its balance sheet restructuring program, with the cash from the land sale expected to close the working capital gap.” As business suffered a liquidity crunch, East African Portland Cement slashed its permanent personnel by 78 percent in the year ended June 2021.
Its financing costs declined as well, from Sh269.4 million to Sh101.2 million, meaning that the company’s debt was reduced or renegotiated. “Revenues from business reorganization initiatives continue to materialize,” the Nairobi Securities Exchange-listed company said in a statement. “The company has made significant progress in its balance sheet restructuring program, with proceeds from the land sale expected to assist in closing the working capital shortfall.” Due to a cash problem, East African Portland Cement cut its permanent employees by 78 percent in the fiscal year ending June 2021
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