Tyre firm Sameer issues profit warning
06 August 2014, 10:26
Nairobi - Sameer Africa expects its profit to fall by at least a quarter this year mainly due to the absence of a one-off gain recorded last year, the company said on Tuesday.
Sameer, the maker of Yana tyres, said it had booked a 255 million shilling ($2.91 million) profit from sale of some of its land in 2013, an item that would not recur this year.
Pretax profit for the first six months of the year had already more than halved to 114.2 million shillings, hurt by a flood of cheap imports from China and other markets in recent years.
First-half revenue edged up 1 percent, thanks to higher sales to government agencies and private firms.
It added that conflict in neighbouring South Sudan and a lack of hard currencies in Malawi led to a decline of more than 40 percent in its sales in those export markets.
Sameer said it would launch a new brand called Summit this month to help it shield its market share among consumers who do not spend on premium brands.