NAIROBI, Kenya
Uchumi Supermarket has recorded 12% increase in profit for the full-year ending June 30, 2013. The group’s profit before tax rose to Ksh486 million in 2013, up from Ksh406 million in 2012, while the earnings per Share grew by 31% from Ksh1.03 per share in 2012 to Ksh1.35for the year ending 30th June 2013.
The growth is earning has been attributed to the successful implementation of growth strategies supported by efficient cost management. Speaking at an investor briefing, the group Chief Executive Officer Jonathan Ciano said the results for 2013 are a significant improvement over 2012 on all key measures, with growth in profitability, sales revenues, and customer numbers.
Uchumi supermarket s sales revenue grew by 3.2% to Ksh14.369 billion as annual customer numbers expanded by 10% to 24 million. Trade margins improved from 18% in 2011/12 to 19.2% in 2012/13 as a result of continued focus on management of cost of sales. The Group’s total assets also grew by 12.8% to Ksh5.5 billion as on June 30th, 2013.
“The group has delivered results that are very much in line with our expectations at an operating level. The group has managed the business well in particularly challenging times. We expect to continue to grow in performance and business base with maturity of the growing new retail networks and the adoption of cautious strategic approach in the Eastern African region,” said the Dr Ciano.
Runaway inflation caused by the increasing cost of global fuel prices, however, led to increase in operation cost. Uchumi super market is seeking additional capital to finance its regional growth and expansion through a Right Issue which will be preceded by cross-listing in Dar es Salaam Stock Exchange, Rwanda Stock Exchange and Uganda Securities Exchange.
The sourced funds will be used to support new retail network branches in Kenya and the region as well as refurbish Kenyan branches. The CEO added that in the next one year or so, Uchumi plans to open 13 retail branches across East Africa in a bid to competitively and strategically position its business. “We also want to proactively position ourselves and be able to adequately finance working capital for our subsidiaries with a consequent growth in market share and sales volumes, reflective of demographic and economic regional growth,” he said.
Leave a comment