Corporate News
By BD REPORTER AND REUTERS
In Summary
- Cement maker ARM reported a half-year after-tax loss of Sh356 million, while TPS Serena lost Sh97.3 million in the same period.
Two NSE-listed companies Thursday reported net losses
for the six months to June, while tyre maker Sameer announced a 42 per
cent drop in pre-tax profit to Sh66.2 million.
Cement maker ARM reported a half-year after-tax loss of Sh356 million, while TPS Serena lost Sh97.3 million in the same period.
ARM said in a statement that financing costs rose
to Sh627.04 million in the period to end-June from Sh220.97 million due
to inclusion of costs for construction of a clinker plant in Tanzania
where it also operates cement plants.
Total revenue rose to Sh7.69 billion from Sh7.57 billion, the firm said.
ARM Cement, however, said it incurred a narrower
unrealised foreign exchange loss of Sh1.42 billion in the half-year to
June from a loss of Sh25.8 million last year, thanks to weakening Kenyan
and Tanzanian shilling.
“Inspite of the recent currency depreciation and
increase in interest rates, the fundamentals for continued economic and
construction sector growth remain strong,” the firm said.
“The company expects to significantly improve
performance in the second half of the year through cost efficiencies
arising from self-sufficiency in clinker, and increased sales from all
business divisions.”
Sameer, which also released its results on
Thursday, said it continued to face competition from cheaper, imported
tyres from Asia, a factor it had blamed for losses last year. Political
unrest in Burundi, a regional market, also affected sales.
But Sameer said it could still deliver a full-year
profit, and added that it would reduce costs by reviewing its
distribution channels and other aspects of expenditure, citing a nine
per cent decline in operating costs in the first six months.
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