Sameer Africa has embarked on strategies aimed at retiring its foreign-currency dominated liabilities as shilling continues to weaken against the dollar.
The company is projecting its net earnings to go down by at least 25 per cent for the period 31st December 2023 compared to earnings reported in similar period last year.
- According to the company, the profit warning announcement is based on management accounts of the company and a preliminary assessment made by the board with reference to figures and information currently available.
- The shareholders of Sameer Africa Plc and public are advised to exercise caution when dealing with the shares of the company.
- A profit warning is a declaration issued by a listed company that warns investors that the profit of the company will significantly decline or even run into a loss.
“The decline in forecasted earnings is attributable to the continued depreciation of the Kenya shilling against major currencies. This has seen the company incur substantial foreign exchange losses for the period arising from the translation of foreign-currency denominated liabilities,” noted Mercy Mbijiwe, Company Secretary.
“The company is implementing initiatives aimed at retiring the foreign-currency denominated liabilities by 2024,” she added.
Sameer Africa, Crown Paints Kenya and WPP ScanGroup becomes the latest casualties to issue profit warnings this year. Others are Nation Media Group, Sasini, and Car &General.
Weak shilling trigger profit warnings from listed firms (kenyanwallstreet.com)
