Listed tyre manufacturer Sameer Africa has swung to a KSh 259.9 million profit after tax in 2024, up from KSh 46.3 million the year before.
- •The turnaround came mainly from foreign exchange gains and a drop in finance costs.
- •For the half-year ended June 2024, Sameer had already reported a KSh 108.8 million profit, a more than threefold rise from KSh 24.2 million in the preceding six months.
- •The company cited increased economic pressure from public debt, high interest rates, and protest-related disruptions as downside risks for the near term.
The jump was largely tied to a stronger shilling, which drove significant unrealised forex gains. However, revenues for the period declined slightly to KSh 192.75 million, and the company did not report cost of sales. Operating profit fell to KSh 72.3 million, impacted by non-recurring expenses linked to a subsidiary.
It plans to shore up revenue through rental income from a new warehouse under its Infill Project, though progress has slowed due to delays at the land registry.
The company booked an unrealized forex gain of KSh 83.6 million over the full year, tied to the strengthening of the Kenyan shilling against the US dollar. This gain helped absorb a drop in operating income and rising expenses.
Revenue held steady at KSh 389.5 million, while cost of sales fell significantly, boosting gross profit. However, operating profit declined by 14% to KSh 198.1 million, weighed down by a 19% rise in expenses and a reduction in other income.
Sameer also made notable balance sheet improvements during the year. After fully repaying its borrowings, the company cut total liabilities by 22% and lifted shareholders’ equity by 56%.
A breakdown of key numbers is shown below:
| Metric | 2024 | 2023 | YoY Change (%) |
|---|---|---|---|
| Profit After Tax | KSh 259.9m | KSh 46.3m | +461% |
| Revenue | KSh 389.5m | KSh 390.5m | -0.3% |
| Operating Profit | KSh 198.1m | KSh 230.2m | -14% |
| Forex Gain | KSh 83.6m | — | — |
| Shareholders’ Equity | KSh 735.6m | KSh 472.6m | +56% |
| Total Liabilities | KSh 786m | KSh 1.01bn | -22% |
Cash and cash equivalents stood at KSh 61.1 million, down slightly from KSh 61.8 million, as the firm absorbed financing outflows of over KSh 500 million linked to debt repayments.
Director compensation rose to KSh 25.6 million, up from KSh 23.7 million the previous year. The company’s share price closed at KSh 2.28 on Friday, marking a 0.44% gain year-to-date.
The board did not recommend a dividend payout for the year. The 56th Annual General Meeting will be announced in due course.
