Listed tyres’ distributor, Sameer Africa, has recorded a profit-after-tax of KSh 108.8 million in the half year ended June 2024, a triple rise from the preceding period due to the Kenyan shilling strengthening against the dollar.
- •In the half year ending December 2023, Sameer Africa’s profit-after-tax KSh 24.2 million and revenues worth KSh 201.19 million.
- •Sameer’s revenues in the ended half year declined to KSh 192.75 million and the company did not record the cost of sales on its financial report.
- •For the period ended December, Sameer Africa’s cost of sales stood at KSh 26.6 million slogging its gross profit.
“Appreciation of the Kenyan Shilling against the US dollar over the period resulted in a significant unrealized foreign exchange gain on translation of the US dollar-denominated liabilities, reported under finance costs,” Sameer said in a statement.
Sameer Africa reported that its operating profits had slumped to KSh 72.3 million as opposed to KSh 125.6 million in the preceding period. The company has attributed this to “the timing of non-recurring expenses related to subsidiary operation”.
The company’s outlook for the current period is bloated with uncertainty over heightened public debt, hiked interest rates, and protracted protests. Sameer foresees a period of reduced spending and diminished clients, prompting a closer evaluation of risks.
One way it intends to beef up its revenues is by optimizing rental income from its newly-built warehouse under the ‘Infill Project’. Sameer has cited that the progress for the project has been slowed down by the sluggish process at the land registry.
Sameer has seen a slight drop in the value of its assets in the period under review, recording KSh 1.47 billion compared to December’s figure that stood KSh 1.48 billion. However, by June 2023, total assets were at KSh 1.31 billion. Income taxes also reduced gradually in June 2024 period, from KSh 37 million to KSh 26.5 million.
Sameer’s share price after the markets closed on Friday stood at KSh 2.28, a 0.44% gain since the start of the year.
