Earnings UpdateHome Afrika Cuts Net Losses by 62% to Kes 340.3 Million

Home Afrika Group reported a 62% decrease in Loss After Tax of Kes 340.3 Million for the period ended 31st December in 2020, down from a Net Loss of Kes Kes 888.8 Million in 2019.

The Group reported a 1,3445 increase in its gross profit for the year ending 31st December 2020 compared to the same period in 2019, from Kes 3.6 Million to Kes 52.4 Million.

Home Afrika financials

Home Afrika Group operating loss reduced from Kes 631,966, 263.00 in 2019 to Kes 119,016,370.00 in 2020, with the balance sheet size growing from Kes 4.3 Billion to Kes 4.4 Billion during the period under review.

Actual sales, not adjusted for the percentage of completion, increased 4% during the year from Kes 645 Million in 2019 to Kes 672 Million in 2020.

Growth of actual sales by the Group happened despite a depressed economic environment and significant adverse effects of the Covid-19 pandemic.

Read Also: Home Afrika Records 58% Decline in Revenue in the Half Year Results

In addition to growth in actual sales and gross profit, the Group has reported a 62% decrease in loss before tax for the period ending Dec 31s 2020 of Kes 338 Million down from Kes 887 Million posted in 2019.

Migaa Golf Estate, being a long-term project, is expected to realize its profitability at the end of the project, which is in 3 – 4 years.

Sales proceeds of this project are carried in the balance sheet as current liabilities both as deferred income and as deposits from sales of plots, both now grossing Kes 3.1 Billion as of 31st December 2020 compared with Kes 3 Billion for the same period in 2019.

The book value of the Group’s sellable land and other inventory stood at Kes 3.6 Billion in 2020.

“We continue to invest in infrastructure of the various projects, especially our main project, Migaa Golf Estate, which will help improve the market value of the land bank as the land becomes more desirable,” said Dan Awendo, Managing Director, Home Afrika Group.

The Directors do not recommend a dividend for the period ending 31st Dec 2020.

Jackson Okoth of the Kenyan Wallstreet contributed to this article

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