Sameer Africa has reported a 9.1% drop in Half Year profits of Ksh 43.6 Million compared to the previous period’s Ksh 47.9 Million.
- •Revenues dropped by 16% to Ksh 1.49 billion versus Ksh 1.77 billion posted the previous period. The Nairobi Exchange listed company cited competition from imported tires into East Africa for the drop,adding that tight liquidity led to the group responding with stricter credit control.
- •Profit before income tax for the period was at 58.8 million shillings versus 66.2 million shillings year ago.
- •The company reported poor regional performance especially in Burundi, blaming the ongoing political unrest in the country.
- •Gross margins improved to 30.75% from 27.43%
FUTURE OUTLOOK, DIVIDENDS;
- •Going forward, the company says it may consider outsourcing production to lower production countries such as India or China.
- •The Board of the company did not recommend payment of an interim dividend.
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On Tuesday, Sameer Africa closed at 2.85, 7.55% above its ALL TIME of 2.65, set on Jul 12, 2016.(See attached Chart)
(Sameer Africa Limited is a Kenya-based company primarily engaged in the manufacture, importation and sale of tires, and related products and services, and the letting of investment properties. It operates through four business segments: Manufacturing and distribution, Regional operations, Yana Tyre Centre and Rental business.)
(Sources; Kenyan wallstreet, NSE, FT)
