4 September 2013

Kenya: Uchumi Supermarkets Full Year Profit Up 30 Per Cent

Listed retailer Uchumi Supermarkets yesterday reported a 30.3 per cent rise in full year profit to Sh373.01 million from Sh273.98 million last year.

It said the favourable result for the period ended June 30 was driven by increased turnover boosted by a drop in inflation in Kenya, Tanzania and Uganda where it operates.

The countries experienced annual economic growths of 4.4, 7 and 4.4 per cent, respectively, in 2012.

Income from sales over the 12-month period stood at Sh14.37 billion a 3.24 per cent growth from Sh13.93 billion.

Operating costs rose by Sh466,000 to Sh3.177 billion and the management partially attributed this to a resurgence in inflation rates towards the tail end end of the financial year under review.

Earning per share stood at Sh1.35 from Sh1.03 last year. The board has recommended a first and final dividend of 30 cents a share.

The company's shares trading at Nairobi Securities Exchange shed 55 cents to close at Sh19.15.

The retail chain announced plans to increase its branch network to 33. It presently operates 23 branches in Kenya having recently opened a new store in Kisii.

It plans to open four more before next June in Mombasa, Juja, Maua and Kisumu.

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