Rising costs weigh on H1 profit at Rea Vipingo
28 May 2013, 15:35
Nairobi - Rea Vipingo posted a 7 percent drop in first-half pretax profit to KES 281 million ($3.3 million) due to a jump in its cost of sales, it said on Monday.
The sisal producer said it expected prices and sales to remain at "satisfactory levels" in the remainder of its financial year ending September.
It blamed rising costs at its Tanzanian estates for driving its cost of sales for the six months ended March to KES 667 million from KES 637 million the year before.
Earnings per share dropped to KES 3.18 from KES 3.47, it added.
"The continued unreliable grid power supply situation continues to contribute to higher energy costs as we are forced to use diesel generators for extended periods," the company said in a statement.
($1 = 84.3000 Kenyan shillings)
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