Uchumi Supermarkets, a Kenyan retailer listed on the Nairobi Securities Exchanged released its full year 2017 results for the period ending 30 June 2017 that saw it post an after tax loss of KES 1.68 billion a 40% improvement from the previous financial year loss of KES 2.84 billion.
Revenue
Uchumi’s revenue dropped by more than half (59.7%) to KES 2.59 billion compared to the previous year’s revenue of KES 6.43 billion. This is largely due to the restructuring of the company that has led to consolidation of the business.
Expenses
The company managed to slash its operating expenses by 42% to KES 2.11 billion compared to the KES 3.65 in the previous financial year.
Outlook
The company cited that they are currently in discussions with a strategic investor and will be expecting a government loan of KES 700m. It also further stated that new fund deplomeny plans are being established to re-stock stores, secure locations of their 20 branches, ERP system enhancements and management of the old supplier debt among other initiatives.
Dividend
The company did not declare any dividend.
Qualified Audit Opinion
The company’s auditors have qualified their financial results due to the possible effect on the comparability of corresponding and current year figures as a result of loss of control of business in the Uganda and Tanzanian subsidiaries in FY16 and asset write offs in FY16.
Share Price
Uchumi rallied up by 4.48% to KES 3.50 on Wednesday’s trading before closing at KES 3.45 per share. The counter traded 5,900 shares. On a year-to-date basis Uchumi’s share price is up by 12.7%.
