East African Cables Group recorded a loss of Ksh 244.4 million for the six months ended June 30th. Company Secretary Virginia Ndunge says the performance in the first half of the year stems from supply chain disruptions because of the pandemic. In the first six months of 2019, East African cables reported a profit of Ksh 633.5 million.
Unaudited results the Group show that topline grew by 8.1% to Ksh 755.9 million this year despite market and supply chain disruptions. Virginia Ndunge attributes the growth in group revenues to volume growth.
“Despite these challenges, group revenues improved by 8% attributed to volume growth. Cost savings initiatives through Total Performance Management (TPM), continue to yield positive gains with a reduction in overall expenses by 12%.”
The company cut its costs of operation by 17.4% to Ksh 412.5 million while its finance expenses grew by 42.8% to Ksh 147 million YoY. Basic and diluted earnings per share fell by 66.7% to Ksh 0.84 from Ksh 2.54 in the same period last year.
This year the company did not record gains from extraordinary items, unlike last year where extraordinary items accounted for gains of Ksh 1.2 billion.
East African cables have now finished restructuring it its KSh285 million loan with SBM bank, and will now focus on building its brand equity, improving its market coverage and its efficiency.
Going forward, the company’s board expects that demand will now pick up as restrictions ease, allowing the movement of both goods and people. The board is also looking to fix challenges in accessing working capital in its Tanzania subsidiary, as well as grow its market share through promoting brand visibility and improving customer experience.
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