[2008-06-04]  Rea Vipingo profit down 9p.c.
Sisal fibre producer Rea Vipingo Limited has recorded a nine per cent decline its half year pretax profits.

The company recorded a Sh91.2 million profit compared to Sh100 million it realised in the same period last year. The six-month trading period for the company came to a close on March 31, 2008

According to Mr Ian Hodson the company secretary , the decline has been occasioned by the strong performance of the Kenyan shilling against other world currencies.

“The domestic currency has enjoyed a sterling run over the period against other currencies. This has in return affected our half year profits,” said Mr Hodson. The Kenyan shilling has been enjoying a bullish run versus other world trading currencies in the past year. It only succumbed in January and February following the post-election violence and rose again at the signing of the peace deal. Since then, the home currency has maintained Sh61 and Sh62 exchange rate against the US dollar.

Margins

In the period, the firm’s turnover grew marginally from Sh599 million it posted last year to Sh619 million. With an annual sisal fibre production of over 16,000 tonnes, the company is among the largest sisal producers in Africa. Most of it is exported to European markets.

Also on the decline in the listed company results was its operating profits that dipped by three per cent to Sh112 million from Sh115 million posted in the six months ended March 2007.

“In the period under review, the company incurred more costs in operations, leaving us with a slight decline in the margins,” said Mr Hudson.





Source: Nation Media Group 2007