A section of Bamburi Cement premises in Mombasa. FILE photo | nmg
Summary
- The latest firm to issue a profit warning is fashion retailer Deacons that blamed lower sales on prolonged electioneering period, the exit of Nakumatt Supermarkets from several shopping malls, drought and the proliferation of shopping malls.
- Last week, Flame Tree Group board of directors announced that earnings for the current financial year ending December 31 are forecast to be lower than 25 per cent of the earnings for the same period in 2016.
- Listed banks reported that the capping of interest rates had affected profitability due to suppressed net interest income in the first half of the year.
At least seven firms listed on the Nairobi Securities Exchange (NSE) issued profit warnings in 2017 citing political uncertainty due to
prolonged electioneering period, interest rate cap and drought
conditions experienced earlier in the year.
The latest firm to issue a profit warning is fashion retailer Deacons East Africa
that blamed lower sales on prolonged electioneering period, the exit of
Nakumatt Supermarkets from several shopping malls, drought and the
proliferation of shopping malls.
Last
week, Flame Tree Group board of directors announced that earnings for
the current financial year ending December 31 are forecast to be lower
than 25 per cent of the earnings for the same period in 2016.
Listed
banks reported that the capping of interest rates had affected
profitability due to suppressed net interest income in the first half of
the year.
Family Bank, Standard Chartered Bank
, Bamburi Cement , Standard Group, BOC Kenya
during the year announced that their earnings for the full year ending
December 31, would be lower by at least a quarter compared to last year.
Other companies which issued profit warnings during the year include Mumias Sugar
, Unga Group , East African Cables , privately owned retail Nakumatt Holdings and shoe and leather accessories vendor, Nairobi Business Ventures Ltd
which blamed the delay in securing additional funds to finance its working capital requirements.
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