Longhorn Publishers Post Kes 145 Million Half-Year Loss
Listed publishing firm, Longhorn has posted a Kes145.33 million net loss in the half-year period ended December 31, 2020, down from Kes 68.97 million net profit the company posted over the same period in 2019. However, the half-year loss narrowed by 51% from Kes 294.84 million net loss posted at the end of June 30, 2020.
The Nairobi Securities Exchange listed company’s revenues fell sharply to Kes 288.5 million at the end of the half year period, from Kes 725.4 million a year ago, a 60 percent drop.
Longhorn sells academic and non-academic books to learners in the East African region. Schools closure in Kenya severely affected the publisher’s performance. Nonetheless, regional sales to Uganda and Tanzania shot up by 263% and 19% respectively, compared to the same period in 2019. Tanzania registered its fourth year of consistent revenue growth.
Longhorn earned Kes 94 million, or a third of its total revenue, from its first sales in francophone nations in Africa, marking significant progress in its expansion strategy.
The publisher’s expenses fell by 41%, to Kes143.4 million compared to Kes 241.4 million posted a year ago, as a result of cost cutting measures taken during the year.
Directors of Longhorn Publishers expect improved performance in the second half of the year as schools have reopened and the Kenyan economy is slowly recovering. The group projects higher sales in the regional markets as well.
Longhorn notes that the pandemic and the related mitigating measures in Kenya and other regional markets where it operates have had an adverse impact on its business.
However, in Uganda and Tanzania, where learning was not heavily disrupted in the period under review, sales revenue grew by 263 percent and 19 per cent respectively compared to a similar period the previous year.
Seeing that learners are increasingly using online learning platforms in school and at home, Longhorn has ventured into the digital space and aims to increase sales through its digital learning solutions. The company recently launched SOMO, a global product that provides learners with essential 21st-century skills.
“The Board of Directors remains very confident of the recovery of the business in the second half of the year and growth of the shareholders’ value,” the company said.