Kenyan tire maker Sameer posts 53 percent rise in profit
ERJ staff report (TP)
Nairobi – Kenyan tire maker Sameer reported a 53 percent rise in full-year pretax profit last week, citing a surge in exports and local sales, reported James Macharia for Reuters.
The company said that rising energy costs were offset by a drop in the price of raw materials in line with a depressed international market for the commodities used to manufacture tires as well as a stable exchange rate.
Pretax profit rose by 53 percent to 457m shillings (€3.85m), buoyed by the 255m shillings (€2.14m) sale of a piece of land it previously leased out.
Profit was curbed by an 18 percent rise in operating costs after Sameer set up new retail outlets and expanded its operations in Burundi, as well as a drop-off in sales during the run-up to the election in March, the company said.
Sameer cautioned that it continues to face significant competition from cheaper imported tires.
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Full story from Reuters