Uchumi Supermarkets (Uchumi) saw its net sales improve by 12.8% to Kshs. 10.84 Billion in the period under review.
Gross profits were up 10% to Kshs. 2.35 Billion from Kshs. 2.1 Billion
Profit Before Tax was up 18.85% to Kshs. 514.8 Million though Profit After Tax reduced to Kshs. 390.4 Million from Kshs. 865.1 Million. This was as a result of the end of tax-credits Uchumi enjoyed from the Kenya Government while it was in the recovery phase
Operating expenses increased to Kshs. 1.8 Billion from Kshs. 1.6 Billion, a rise of 14.6%. The rise in expenses led to Operating Profits slumping 3.4% to Kshs. 518.4 Million
Management noted that costs increased “in line with the growth in business as well as the runaway increase in inflation caused by the increasing cost of global fuel prices which in itself is a significant factor on the prices of commodities”
Finance costs decreased significantly from Kshs. 103.6 Million to only Kshs. 3.6 Million
Reserves now sit at Kshs. 952 Million up 49%. At 30th June 2009, reserves were at negative Kshs. 1.1 Billion, this showing how far the company has come in the past 2 years
Term loans decreased to Kshs. 183 Million from Kshs. 320 Million.
Customer numbers now stand at 19 Million from 18 Million last year
Total Assets were up to Kshs. 4 Billion from Kshs. 3.15 Billion, a 27% rise.
Investors seemed impressed by the performance of the retailer as the share was up 6.3% to Kshs. 8.40/= in early afternoon trading. This represents a Price to Earnings Ratio of 5.7
After the successful turnaround, Uchumi is now focused on expansion, from which it aims to double its market value in 2 years. In the run-up to the relisting of the shares Jonathan Ciano, its Chief Executive Officer, had this to say:
"The value of the company is expected to grow by 50-100 percent within the next two years. That is the value of this organisation, and within five years it is definitely going to more than double."
"We are going into what you would call very cautious growth. A growth that would call for us to go into areas where we are not covered as yet," Ciano said. "We are talking of going into green areas without cannibalising our existing network so that is how we have mitigated the risks."
Ciano stated that the supermarket chain plans to open at least 5 branches by the end of the year with a possibility of opening an additional three.
It recently opened a store at ‘Quality Mall’ in Dar-es-Salaam and has 3 stores in Uganda
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