Express Kenya released its full year financial results for the period ending 31 December 2016 together with a Profit Warning Announcement. A glance at their financials clearly indicates the logistics company is struggling to turn into profitability. The company reported a full year loss of Ksh 96.9 million in 2016 compared to Ksh 60.1 million in the previous period (2015).
The company’s revenues dropped by almost half from Ksh 123.9 million in 2015 to Ksh 62.8 million in 2016. Analyzing the company’s revenues for the past 5 years, the company’s revenues have been declining year on year apart from 2013 where the company’s revenues hit Ksh 387.5 million.
Other operating income fell from Ksh 11.7 million in 2015 to Ksh 1.8 million in 2016.
Operating loss for the period deepened from Ksh 58.9 million in 2015 to Ksh 95.1 million in 2016. Profit before tax came in at Ksh 112 million. Finance costs were relatively flat for the period compared to 2015. Effectively net loss came in at Ksh 96.9 million due to a tax credit of Ksh 15 million.
Going forward the company mentioned that is has diversified into the real estate industry and expects earnings to be boosted by this initiative.
