Uchumi Supermarket Ltd HY 2013 results


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Uchumi Supermarket Ltd HY 2013 results

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Uchumi Supermarket Ltd HY 2013 results

  1. 1. Uchumi recorded impressive sales and margins in spite of the prevailing challenging economic, social and political and competitive environment in the Eastern African Region. The period experienced escalating prices of goods and factors of production that were compounded by the depreciating local currencies against the world hard currencies. There were shortages of some essential commodities and glut of others all associated with global events and favorable weather in the region. The costs of funding and energy continued to rise during the period precipitating price increases in most of the locally manufactured products due to the increased cost of production in spite of the declining inflation. The business environment subsequently experienced a lot of strain. Despite the foregoing, Uchumi has maintained a steady growth in sales occasioned by continuous improvement in customer service and a consequent organic growth in customer numbers. We recorded gross sales of Kshs.9.11billion compared to the Kshs.8.34billion recorded over the corresponding period in the previous year. We have continued with a cautious growth in our branch networks in carefully selected strategic locations geared towards reaching our customers in areas that were previously un-serviced by Uchumi. New branches opened in the first half were Ongata Rongai and Eldoret in Kenya and Natete in Uganda. Another four branches opened in the 2011/12 financial year continued to stabilize as the outlets mature with a consequent growth in group sales revenue. Profits before tax for the half-year were Kshs.132million while the balance sheet grew by Kshs.355 million to stand at Kshs.5.297 billion as at 31st December 2012, with favorable progressive decline in gearing compared to end of June 2012. Outlook into the second half is bright as plans to open at least two additional branches before 30th June 2013 in Kenya are on course. The outlets previously opened over the last one year are also fast-maturing and we expect impressive growth in business by end of this financial year. By order of the Board. MS KHADIJA MIRE DR. JONATHAN CIANO, MBS CHAIRMAN CHIEF EXECUTIVE OFFICER COMMENTARY ON INTERIM FINANCIAL RESULTS FOR HALF-YEAR PERIOD ENDED 31ST DECEMBER 2012 UCHUMI SUPERMARKETS LTD & SUBSIDIARIES CONSOLIDATED INCOME STATEMENT AUDITED UNAUDITED 30th June 2011 30th June 2012 Six Months to 31st December 2012 Kshs’000 Kshs’000 Kshs’000 Net Sales 10,840,728 13,918,530 7,588,712 Cost of Sales (8,943,513) (11,407,227) (6,112,694) Gross Profit 1,897,215 2,511,303 1,476,017 Other Income 451,561 628,407 213,198 2,348,776 3,139,710 1,689,215 Operating Expenses (1,830,313) (2,711,285) (1,547,145) Profit from Operating Activities 518,463 428,425 142,070 Finance Costs (3,630) (25,082) (10,136) Profit Before Taxation 514,833 403,343 131,934 Taxation (124,408) (129,366) - Profit After Taxation 390,425 273,977 131,934 Earnings Per Share Basic and Diluted 1.47 1.03 0.50 Number of shares outstanding 266mln 266mln 266mln CONSOLIDATED BALANCE SHEET ASSETS NON-CURRENT ASSETS 2,607,070 3,347,742 3,466,559 CURRENT ASSETS 1,397,650 1,594,146 1,830,056 TOTAL ASSETS 4,004,720 4,941,888 5,296,615 SHAREHOLDERS’ EQUITY AND LIABILITIES CAPITAL AND RESERVES Share Capital 1,327,133 1,327,133 1,327,133 Reserves 952,032 1,330,677 1,462,611 2,279,165 2,657,810 2,789,745 NON CURRENT LIABILITIES Term Loans 183,368 80,309 52,346 CURRENT LIABILITIES 1,542,187 2,203,769 2,454,525 TOTAL SHAREHOLDERS’ FUNDS AND LIABILITIES 4,004,720 4,941,888 5,296,615