Uchumi Supermarkets, a Kenyan retailer has released its full year 2017 results for the period ending 30 June 2017 that saw it post an after tax loss of Ugs 58billion.
Uchumi posted a loss of KES 1.68 billion a 40% improvement from the previous financial year loss of KES 2.84 billion.
Uchumi was operating in Uganda and exited the market after ratcheting up massive loses and failign to pay hundreds of local suppliers.
Uchumi’s revenue dropped by more than half (59.7%) to KES 2.59 billion compared to the previous year’s revenue of KES 6.43 billion. This is largely due to the restructuring of the company that has led to consolidation of the business.
The company managed to slash its operating expenses by 42% to KES 2.11 billion compared to the KES 3.65 in the previous financial year.
The company cited that they are currently in discussions with a strategic investor and will be expecting a government loan of KES 700m. It also further stated that new fund deplomeny plans are being established to re-stock stores, secure locations of their 20 branches, ERP system enhancements and management of the old supplier debt among other initiatives.
The company did not declare any dividend.
Qualified Audit Opinion
The company’s auditors have qualified their financial results due to the possible effect on the comparability of corresponding and current year figures as a result of loss of control of business in the Uganda and Tanzanian subsidiaries in FY16 and asset write offs in FY16.
Uchumi rallied up by 4.48% to KES 3.50 on Wednesday’s trading before closing at KES 3.45 per share. The counter traded 5,900 shares. On a year-to-date basis Uchumi’s share price is up by 12.7%.