East African Cables Plc has posted a 2% increase in revenue to KSh 2.57 billion for the financial year ended December 31, 2024, supported by product innovation, new market channels, and growing demand in its core markets.
- •However, despite operational improvements, the company posted a deeper after-tax loss of KSh 358.8 million, compared to KSh 301.9 million in 2023, driven primarily by surging finance costs.
- •The Group delivered a strong operational turnaround with EBITDA improving from a negative KSh 20 million in 2023 to a positive KSh 179 million in 2024, representing a remarkable 1,007% improvement.
- •Management attributed the gains to enhanced gross margins, better cost management under the Total Performance Management (TPM) program, and lower impairment losses.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Revenue | KSh 2.566B | KSh 2.525B | +2% |
| EBITDA | KSh 179M | (KSh 20M) | +1,007% |
| Loss After Tax | (KSh 359M) | (KSh 302M) | -19% |
| Gross Profit | KSh 756M | KSh 670M | +13% |
| Finance Costs | KSh 483M | KSh 337M | +43% |
| Cash and Equivalents | KSh 43M | KSh 105M | -59% |
Gross profit increased by 13% to KSh 755.9 million, up from KSh 670.3 million in the previous year, as cost of sales marginally declined. However, rising finance costs, which jumped to KSh 483 million from KSh 337 million in 2023, offset the operational improvements, highlighting debt pressure as a key challenge for the Group.
“The Group continues to actively pursue amicable resolution of the ongoing legal challenges with the main lender to ensure minimal disruption of our operations and focus on topline growth,” the company stated in its results announcement. Initiatives include asset sales, divestiture of subsidiaries, and support from parent company TransCentury Plc to mobilize new financing.
The Board did not recommend the payment of a dividend for the year.
From a cash flow perspective, East African Cables generated KSh 551 million from operations but spent heavily on debt service, leading to a net cash outflow of KSh 62 million. Cash and cash equivalents stood at KSh 43 million at year-end, down sharply from KSh 105 million a year earlier.
The Group’s balance sheet remained under pressure, with current liabilities exceeding current assets by KSh 2.68 billion. The auditors, RSM Eastern Africa LLP, highlighted a material uncertainty related to the company’s ability to continue as a going concern.
Despite these challenges, management remains optimistic. “Our business remains resilient, recording remarkable growth over the last five years. The turnaround initiatives we are implementing continue to yield positive results,” the company noted. East African Cables plans to sustain growth through continued product innovation, new market access, and cost optimization measures.
East African Cables operates in Kenya and Tanzania, manufacturing electrical cables for both industrial and domestic use.
