Uchumi Posts Pre-Tax Loss Of KES 895 Million

Uchumi Supermarkets posted a pre-tax loss of KES 895.2 million for the six months ended 31st December 2017, a decline compared with the same period in 2016 that brought a loss of KES 547.3 million.

The net sales were KES 527 million, which is about a quarter of the net sales from 2016.

The board of directors did not recommend the payment of a dividend.

The company has been struggling with losses in the recent years. Uchumi operated in Uganda and Tanzania without profit for five years, culminating in the closure of stores in those two countries.

In 2017, the company received an injection of KES 12 billion from the government of Kenya, and planned to reopen stores in Uganda and Tanzania.

On the Uganda Securities Exchange, the Uchumi (UCHM) share price fell 0.20% on Wednesday to UGX 116.45. On a year-today basis, the company’s share price is down 28.16%.

Both the USE ALSI and LCI closed the day down 0.48% and 0.06% respectively.