Our Esteemed Stakeholders,
I trust this message finds you well and high spirits.
As we embark on the new Financial Year 2025/26, I am pleased to present our performance update for July 2025, a month that has distinguished itself as one of the most exceptional in our recent operational journey.
Thanks to disciplined strategy execution across all facets of our business, we have delivered remarkable outcomes across all functions of our operations. These achievements are a testament not only to our internal operational efficiencies but also to the strengthening trust and preference for our brand in the markets we proudly serve.
Operational Performance Highlights
July 2025 marked a significant production milestone. Building on the momentum of June 2025, which had already set a recent production record, we surpassed expectations once again. Cement output increased by 9% Month on Month, recording the highest monthly cement production since April 2016 (Over 9 years down the line).
This success was attributed to several key factors namely:
- Operational discipline across all our units;
- Improved plant availability due to proactive maintenance, and plant improvements;
- Enhanced capacity utilization of all our key plant installations;
- Continuous optimization of our value chain processes, enabling better output and resource utilization; and
- Optimal stakeholder management (Internal & External).
Such achievements underline our capacity to scale while maintaining consistency and quality cornerstones of our brand.
Commercial and Market Performance
On the commercial front, we recorded a double-digit (11%), Month on Month growth in cement dispatches. This growth was driven by:
- Successfully acquiring high volume accounts;
- Reactivating our dormant clients;
- Activating significant number of new customer accounts;
- Implementing a more deliberate pricing segmentation strategy;
- Our unwavering commitment to quality, consistency, and service; and
- The trust that you have bestowed upon us and your continued confidence in the Strong, Durable and Bright Blue Triangle Cement.
We take immense pride to see that our brand continues to be a trusted partner in building the future of our nation, from infrastructure megaprojects to individual homes.
Distribution and Customer Engagement
Our distribution networks remained agile and highly responsive to shifting market dynamics. By leveraging technology, real-time data, and strong partnerships across the value chain, we ensured product availability, timely deliveries, and customer satisfaction across the regions.
Cross-functional collaboration across all units of our operations has allowed us to uphold our promise as a reliable and dependable cement supplier.
A Forward-Looking Commitment
Whereas the calendar year 2024 registered a 7.94% Year on Year drop in cement sales, the cement consumption in the first quarter of year 2025 grew by 20.69% signaling glimmers of recovery in construction activities, which had contracted in prior year due to budgetary cuts for infrastructure projects and elevated interest rates which constrained expansion in credit flow to the sector. The latest data shows a rebound in construction activities in the country at the backdrop of easing cost of credit and resumption of stalled public projects after government announced it had started paying contractors following verification of debt claims.
The east African regional cement demand is expected to grow at a compounded annual rate of 1.3% from $2.66 billion in 2024 to $2.98 billion in 2033. This growth will be driven by the accelerating infrastructure projects, surging housing demand due to urban migration, and a broadening industrial base. Roads, bridges, ports, airports and railways all demand vast quantities of cement, making it the cornerstone of the region’s growth.
Based on the above cement demand and market insights, the outlook for this business remains optimistic. The short-term priority by the leadership is to exhaust the current design capacity of our plant, and leverage our brand heritage to ensure 100% market absorption of our production capacity.
We however remain mindful of several external pressures, including rising fuel and energy costs and we aim to ensure that we shield both the Company and you, our stakeholders, from the negative effects of the pressures mentioned above. To achieve this, we have taken proactive steps to mitigate these risks through a robust risk mitigation strategy, with gains already evident. Our focus remains on safeguarding the interests of all parties while ensuring the highest standards of quality and reliability.
As we navigate the FY 2025/26, the trajectory is encouraging. Key performance indicators across the business are trending positively, validating our strategy and underscoring the dedication of our teams and partners.
Our focus in the coming months will remain on:
- Disciplined execution of strategic priorities;
- Agile responsiveness to market shifts; and
- Integrity and transparency in all stakeholder engagements.
On behalf of the Board, the Executive Management Team, and the entire East African Portland Cement PLC Family, I extend our heartfelt appreciation to you, our valued stakeholders, from our dedicated shareholders and loyal customers, to our consistent suppliers, supportive regulators, resilient communities, and other partners.
Your trust, collaboration, and belief in our vision empower us to push boundaries, innovate responsibly, and contribute meaningfully to national development.
We are excited to build on this momentum and remain committed to delivering even greater value to you in the times ahead.
With sincere appreciation,
Mohamed O. Adan
Managing Director
