Two NSE-listed firms report losses as Sameer’s profit falls

Two NSE-listed companies Thursday reported net losses for the six months to June, while tyre maker Sameer announced a 42 per cent drop in pre-tax profit to Sh66.2 million.

Cement maker ARM reported a half-year after-tax loss of S56 million, while TPS Serena lost Sh97.3 million in the same period.

ARM said in a statement that financing costs rose to Sh627.04 million in the period to end-June from Sh220.97 million due to inclusion of costs for construction of a clinker plant in Tanzania where it also operates cement plants.

Total revenue rose to Sh7.69 billion from Sh7.57 billion, the firm said.

ARM Cement, however, said it incurred a narrower unrealised foreign exchange loss of Sh1.42 billion in the half-year to June from a loss of Sh25.8 million last year, thanks to weakening Kenyan and Tanzanian shilling.

“Inspite of the recent currency depreciation and increase in interest rates, the fundamentals for continued economic and construction sector growth remain strong,” the firm said.

“The company expects to significantly improve performance in the second half of the year through cost efficiencies arising from self-sufficiency in clinker, and increased sales from all business divisions.”

Sameer, which also released its results on Thursday, said it continued to face competition from cheaper, imported tyres from Asia, a factor it had blamed for losses last year. Political unrest in Burundi, a regional market, also affected sales.

But Sameer said it could still deliver a full-year profit, and added that it would reduce costs by reviewing its distribution channels and other aspects of expenditure, citing a nine per cent decline in operating costs in the first six months.