East African Cables Plc, which has subsidiaries in Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo, registered a net loss of KSh 301.9 million at the end of the 2023 financial year compared to a loss of KSh 345.3 million in 2022.
- Gross profit declined to KSh 670.3 million in 2023 from KSh 686.8 million in 2022 while pre-tax loss rose to KSh 454.9 million in 2023 from a loss of KSh 319.9 million in 2022.
- Earnings per Share, which measures a firm’s profitability declined to KSh 0.81 in 2023 from KSh 1.02 in 2022 while revenues declined to KSh 2.5 billion from KSh 2.6 billion in 2022.
- Loss for the year attributable to owners of the firm increased to KSh 96.3 million in 2023 from KSh 87 million in 2022.
“Despite the challenges faced in the second half of the year, the Group demonstrated resilience and focus recording a reduction in loss and steadily growing revenues, “said the East African Cables Board in a statement.
Expenses increased owing to legal costs, interest expenses, and accruals for tax obligations in Tanzania thereby impacting its earnings. To improve cashflows, East Africa Cables directors say the firm is aggressively seeking to sell non-production assets in addition to divesting from the Tanzania Subsidiary to reduce liabilities.
The Balance Sheet size grew marginally from KSh 5.3 billion in 2022 to KSh 5.4 billion in 2023, with the Group cutting its bank loans and borrowings significantly from KSh 1.3 billion in 2022 to KSh 320.6 million in 2023.
During the year, remuneration for East African Cables executive and non-executive directors amounted to KSh 42.28 million.
While Group revenue decreased by 3%, the Kenyan business grew its revenue by 5% supported by increased market drive, new products, and new market channels.
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