CMC profit drops by 62 per cent

CMC Holdings showroom on Lusaka Road in Nairobi’s Industrial Area. Photo/FILE 

By BD REPORTER
 

 

In Summary

• The firm, still suspended from the Nairobi Securities Exchange over boardroom wars, saw its net profit decline 62 per cent to Sh147.5 million from Sh383.6 million.

CMC Holdings Ltd has reported a sharp fall in profit, driven by reduced foreign exchange gains.

The firm, still suspended from the Nairobi Securities Exchange over boardroom wars, saw its net profit decline 62 per cent to Sh147.5 million from Sh383.6 million.

CMC, which is preparing to hold an annual general meeting on June 12 covering two years, noted the profit was higher by 40 per cent than the entire previous full year when it chalked up Sh105.6 million.

It revealed the turnover for the first two months of the second half was substantially up while borrowing costs continued to drop.

“Management is optimistic that this growth trend will continue to gain momentum as many of the challenges affecting business in the recent past have now been addressed,” said acting group managing director Mary Ngige.

In the six months to March 2012, the motor vendor’s bottom line had received Sh450.3 million forex boost which contracted to Sh89.6 million in 2013.

CMC in the period managed to grow sales to Sh6.9 billion from the previous period’s Sh6.4 billion representing an eight per cent improvement.

However, the cost of sales rose by a slightly lower margin even as the cost of administration fell 11 per cent to eat into the revenue gains.

“The group has several initiatives it has embarked on to ensure that it recaptures and grows its market share,” said the statement signed by chairman Joel Kibe.