Sameer Africa’s earnings before tax have grown 6 percent to 130 million shillings for the first half of this year from 80 million shillings last year despite costs of raw materials and energy increasing 10 percent and 34 percent respectively.
The tyre manufacturer’s total cost of sales in the six-month period culminated to 1.6 billion shillings which was a 20 percent rise since the same period last year. Despite this, higher profit margins were realized on larger revenues which climbed 16 percent to 2 billion shillings from 1.8 billion last year.
Additionally, Standard Investment Bank has said in a research note that lower finance costs were the main driver of Sameer’s performance. These costs dropped 73 percent to 30 million shillings from 113 million mid last year.
Sameer predicts a favorable trade environment for the rest on the year on the back of stabilizing prices of raw materials, crude and a stronger Kenya Shilling. “The Board is optimistic that trading conditions in the second half of the year will be favorable.” the company said in a statement.
Formerly Firestone East Africa, Sameer Africa is listed on the Nairobi Securities Exchange where the share is currently trading at KES 3.80 which is just over one shilling under the share’s one-year high of KES 5.15.