Sameer Africa, one of the largest tyre manufacturers in East Africa, reported a KSh43 million net profit at the end of December 2020, a remarkable improvement from the KSh1.1 billion net loss posted in December 2019. The manufacturer revived its tyre making business in Kenya in February 2021, nine months after exiting the venture.
The firm’s revenue dipped by 57% to KSh757 million at the end of 2020 from KSh1.76 billion in 2019, due to the brief shut down of its tyre business. Its operating expenses fell sharply to KSh118 million from KSh876 million a year earlier.
The company’s inventories decreased to KSh2.4 million at the end of 2020, from KSh419.8 million at the end of 2019. Long term liabilities increased by 55% to KSh714 million as of 31st December 2020, from KSh460 million the year before.
During the year, Sameer Africa cut directors’ compensation by 52% to KSh14.8 million from KSh31.1 million in 2019.
In 2021, the company said it will focus on its four-year strategic plan anchored on its tyre business and real estate portfolio. Sameer Africa directors did not recommend a dividend for the year 2020.