Longhorn Publishers recorded KSh 525.9 million in revenue, up 3.7% year-on-year, but its net loss widened by KSh 74.3 million to KSh 193.3 million.
- Gross profit fell by 12.3% to KSh 81.7 million, translating to a gross margin of 15.5% compared to 31.3% in 2022.
- In its commentary, Longhorn noted a 70% increase in printing costs due to currency depreciation coupled with increased cost of business led to gross margin compression.
- In its H2 outlook, the firm anticipates a stronger half with government contracts expected to rake in KSh 550 million and opportunities for gaining more market share,
“Various macroeconomic headwinds over the past year have had a significant impact on our business. We have seen rising inflation and interest rates and a general economic slowdown across our markets which has resulted in a drop in spending on textbooks, “said the firm in a statement signed by Maxwell Wahome, Group Managing Director & CEO and Francis T. Nyammo, Group Chairman.
Revenue for the period decreased by KSh 61 million, representing a 10% decline, compared to the previous period. In addition, there was a 80% drop in government revenue due to a delay in the commencement of the distribution of textbooks. Operating expenses decreased by 25% compared to the previous period mainly due to a leaner cost structure while finance costs increased by 44% from the prior period due to interest rate hikes.
“We are firmly on course to achieve our digital business goals with significant partnerships with Telecommunication companies expected to be unveiled in this period. This will provide a strong foundation for us to scale the digital revenues. We expect significant updates to the CBC Curriculum in 2024 following the recommendations of the Presidential Working Party on Education Reform,” the firm’s CEO and Board Chair added.
- Longhorn Publishers Limited is a public limited liability publishing company.
- The company sells educational and general books for all educational levels including pre-school, primary, early childhood education, primary, secondary, and tertiary/university.
- It was incorporated in 1965 and was formerly known as Longhorn Kenya Limited until November 2014.
The current share price of Longhorn Publishers Limited is KSh 2.25. The counter closed Tuesday, February 27, 2024 at KSh 2.25 per share on the Nairobi Securities Exchange (NSE), recording a 2.3% gain over its previous closing price of KSh 2.20. It began the year with a share price of KSh 2.41 but has since lost 6.64% off that price valuation, ranking it 50th on the NSE in terms of year-to-date performance.
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