Uchumi supermarket records KES 384 million profit
13 November 2014, 17:30
Nairobi - Uchumi supermarket has recorded KES 384 million in profit in the 2013/2014 financial year.
The profit was up KES 27 million from last year's KES 357 million.
Also, the earnings per share increased 7.5 percent from KES 1.35 to KES 1.45 for the year ended June 2014.
Speaking during the company's annual general meeting held Wednesday at Kenyatta International Convention Centre, the groups Chief Executive Officer, Dr. Jonathan Ciano said the total group sales registered a marginal growth of 1 percent which was occasioned by the combined growth in the Tanzania sales at 10 percent and Kenya's growth by 2 percent.
He said that Uganda registered losses of 12 percent.
Despite the growth, the company’s CEO acknowledged that the business environment in previous financial year experienced many challenges.
"Our business that includes supply chain management experienced many challenges especially in the wake of the retail industry growth," he said.
The CEO also said high lending rates by banks, rising security challenges, slowed government spending in Kenya and Euro debt also hindered their business.
The group's Chairperson, Khadija Mire said despite other companies establishing centres of excellence and the lead time from ordering and importing their products, Uchumi has continued supporting local entrepreneurs by helping in building capacity and creating a ready market.
"Due to the increased number of retail outlets in the East Africa region occasioned by growth of competition and low retail industry penetration, the industry has experienced challenges on product availability prompting others to seek the services from the outer market," she said adding that they might be forced to enter into the import market for purposes of ensuring consistent availability of selected products.
Among the business on the agenda was the approval of a final dividend of KES 0.30 per ordinary share of KES 5 per value of the year ended June 2014.
Other items on the agenda included re-election of board members on rotation and approvals for an increase of the company’s nominal share capital from the current KES 3 billion to KES4 billion.
Uchumi also plans to open twelve branches within the region within the next financial year, including 3 in Rwanda, 4 in Tanzania, 1 in Uganda and 4 in Kenya.
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