Sameer Africa Issues Profit Warning

Sameer Africa has issued a profit warning for the year ending December 31 2022 citing global disruption in its supply chain which has impacted the availability of key products in its tyre business.

In a statement, the board of directors of the company said the company’s financial results for the year are expected to be lower than 25 per cent of the earnings reported after tax for the same period in 2021.

The firm further attributed the profit warning to the weakening of the Kenya shilling which has impacted their margins as the full effect of price changes cannot be passed to consumers.

The shilling has depreciated by almost 40 per cent in the past decade trading at 119.10 units Monday.

The depreciation has been attributed to increased demand for dollars from importers, especially crude oil and merchandise traders.

“This profit warning announcement is only based on management accounts of the Company and a preliminary assessment made by the Board with reference to the figures and information currently available,” said Sameer.

The shareholders of Sameer Africa plc. and the public have been advised to exercise caution when dealing with the shares of the Company.

In 2021, the tyre company posted a ShSh217.3 million net profit.