Sameer Africa swings back to profitability
Published on: August 03, 2021 04:38 (EAT)
Business conglomerate Sameer Africa PLC has swung back to profitability posting Ksh.154.5 million in net earnings through six months to June from a Ksh.58.6 million loss last year. The return to profitability comes as the firm’s rejoins its primary tyre distribution business. The rise in earnings is however largely attributable to muted costs following the company’s adoption of a lean operating model adopted in 2020. Operating expenses for instance shrunk to Ksh.58.4 million from a higher Ksh.128.4 million at the same stage last year. At the same time, Sameer trimmed its cost of sales to Ksh.42.1 million from Ksh.314.6 million while its net finance costs have thinned to Ksh.29.3 million from a higher Ksh.44.5 million. Nevertheless, Group revenues have declined by 27 per cent to Ksh.323 million on what the company says mirrors the gradual re-entry into the tyre business. Subsequent to the rise in earnings, Sameer’s earnings per share have improved to 58 cents from a negative 23 cents in June 2020. Nevertheless, the directors of the company have not recommended the payment of an interim dividend. The board of Sameer expects the profitability trend to be retained through the second half of the year.