Sameer Africa’s net profit jumped five times to kes 217.3 million in the financial period ended 31st December 2021 as compared to kes 43.3 million that was recorded in 2020. The rise in profits was attributed to cost control measures implemented by the firm.
In their financial report, the Nairobi Securities Exchange-listed firm said lower costs boosted margins significantly despite sales decreasing 13.98 per cent or by kes 105.8 million to kes 651.6 million in the period.
“This was largely due to disruption of the global supply chain and rent rebates extended to tenants as a result of the Covid-19 pandemic,” Sameer in a statement.
Cost of sales, in the firm dropped 68.7 per cent to kes 160.5 million in the review period from kes 513.7 million a year earlier while operating expenses declined by 0.25 per cent to kes 117.7 million.
Sameer said its priority this year will be implementing the second phase of its new strategic plan, focusing on both the tyre and property businesses.
The firm earlier announced the closure of its troubled tyre distribution business when it had said it would focus exclusively on real estate development. However, the Nairobi Securities Exchange-listed firm later made an about-turn in February last year when it announced it was re-entering the tyre distribution market on renewed demand for its Yana brands.
The company closed its Nairobi tyre factory in 2016, citing its inability to compete with importers and turned to manufacturers in India and China from whom it contracted the production of tyres for distribution in the local and regional markets.
Sameer Africa had previously announced it would primarily focus on property development before reviving the tyre distribution business.
Sameer did not declare a dividend for the review period.
