Sameer Africa Plc has reported a Kes 43 million net profit during the financial year ended 30th December 2020, a remarkable improvement from the Kes 1.1 billion net loss posted during the same period December 2019.
The tyre manufacturer recorded a decline in revenue by 57% to Kes 757 million during the financial ended 30th December 2020 from Kes1.76 billion recorded in 2019. The decline was attributed to the group’s brief closure of its tyre business due to failure by several strategies undertaken to improve the business and the competition faced from other tyre companies.
However, nine months after closing the tyre business unit, the group announced plans to re-enter the tyre business earlier in February this year. The change of direction was inspired by the sustained demand for Yana Tyres and the success of Sameer’s turnaround efforts in 2020, the company said in a public notice.
The group’s operating expenses fell sharply to Kes 118 million during the period ended 30th December 2020 from Kes 876 million recorded inthe
Sameer Africa recorded a decline in the balance sheet as total assets in the group recorded were Kes 1.05 billion, a 46% decline from the Kes 1.53 billion recorded during the same period in 2019.
The decline was attributed to the significant dip in inventories that decreased to Kes 2.4 million during the financial period ended 30th December 2020, from Kes 419.8 million at the end of 2019. Additionally, the group’s long-term liabilities increased by 55% to Kes 714 million, from Kes 460 million recorded during the period under review in 2019.
The tyre manufacturer paid kes 14.8 million as remuneration to its directors; however, this was a decline from Kes 31.1 million in 2019.
Sameer Africa has expressed optimism in its performance in 2021 and has said it will roll out its strategic plan for the tyre and property business.
The board of directors did not recommend payment of dividend for the financial period ended 30th December 2020.