Tyre-maker turned industrial landlord Sameer Africa Plc posted its highest operating profit since 2013 for the year ended 31 December 2025, with the figure rising 47.7% to KSh 292.64 Mn as rental income growth and aggressive cost cuts widened margins across a fully occupied portfolio.
- •Revenue rose 11.1% to KSh 432.74 Mn, entirely from investment property rentals.
- •For the first time in its 56-year history, the company recorded zero revenue from tyre sales, with the sourcing and distribution, regional operations, and Yana Tyre Centre segments generating no external income during the year.
- •Sameer Africa, incorporated in 1969 as Firestone East Africa Limited, sold its last imported tyres in FY2024.
The operating outperformance was driven by cost discipline. Operating expenses fell 28.6% to KSh 126.11 Mn, with administrative expenses contracting to KSh 42.50 Mn from KSh 79.48 Mn. Gross margin held at 96.2%. The rental business segment generated net rental income before tax of KSh 307.56 Mn from over 40 tenants across distribution, manufacturing, agro-processing, and energy sectors, up from KSh 241.68 Mn in FY2024.
Profit before tax rose 10.5% to KSh 340.42 Mn. Profit for the year advanced 5.5% to KSh 274.28 Mn, with EPS improving to KSh 0.99 from KSh 0.93.
The gap between operating profit growth and bottom-line growth reflects two headwinds: net finance income collapsed to KSh 10.67 Mn from KSh 68.75 Mn as the net foreign exchange gain shrank to KSh 0.68 Mn from KSh 83.61 Mn, and income tax expense rose 37.6% to KSh 66.14 Mn as the effective rate climbed to 19.43% from 15.56%.
Total equity crossed KSh 1.00 Bn for the first time in the post-manufacturing era, rising 37.3% to KSh 1.01 Bn. Total borrowings remain at zero following the clearance of KSh 540.69 Mn in related-party debt in FY2024. Cash and bank balances more than doubled to KSh 173.14 Mn, including KSh 139.92 Mn in new call deposits, and the assets-to-liabilities ratio stands at 2.42x.
The most immediate catalyst for investors is a pending land transaction that dwarfs the earnings figures. Sameer Africa holds 3.75 acres of undeveloped leasehold land valued at US$7.13 Mn (KSh 919.70 Mn), carried on the books at KSh 15,000. Completion documents are in place and management projects the sale will close in Q2 2026. The proceeds would represent more than three times FY2025 net profit and would further accelerate the recovery of the retained earnings deficit, currently at KSh 206.72 Mn.
Past-due trade receivables nearly doubled to KSh 127.15 Mn from KSh 61.43 Mn, with balances overdue beyond 91 days rising to KSh 120.99 Mn from KSh 38.22 Mn. The loss allowance increased to KSh 22.01 Mn from KSh 15.64 Mn. For a company whose revenue base rests entirely on rental collections, the pace of this deterioration requires monitoring.
The company's FY2025 filings separately reveal that Sasini Avocado EPZ, one of its industrial park tenants, paid KSh 10.61 Mn in rent during the year, a disclosure that lands days after Sasini invited tenders for the sale of its avocado processing plant at the same Mombasa Road facility, with bids closing 8 May 2026.
Sameer Africa also holds a 25% stake in Sameer Business Park Limited, which contributed KSh 43.56 Mn in profit share. The associate reported revenue of KSh 406.01 Mn and profit after tax of KSh 174.23 Mn.
