[2008-10-10]  Uchumi Returns to Profitability
Uchumi Supermarkets has recorded a pre-tax profit of KSH106mn for the year ended June 2008.The 141 per cent increase in profit marks the turning point for the retail store that was placed under receivership in 2006. In the previous financial year, the retail store made a loss before tax of KSH256mn. According to the receiver manager Jonathan Ciano, the turn around has been achieved by exercising operational efficiency. "The focus on redefined business objectives, operational efficiency and the re-launched Uchumi brand in line with our rescue plan paid off in this," said Mr Ciano.Uchumi, prior to being place under receivership, had exercised rapid expansion programmes that analysts said were the beginning of its financial unsoundness. However, through the rescue plan it has re-opened 14 branches across the country with a majority being in Nairobi. Customer numbers recorded by the store have also continued to grow with last year's figures indicating a 73 per cent rise. During the year under review, the supermarket increased its net sales to Sh6.7 billion compared to KSH4.5bn it had the previous year.” This is a milestone for us as the last time we recorded a profit was way back in the 2001 and 2002 financial year," added Mr Ciano at a press conference at the Ngong Road Hyper branch, Nairobi.The firm is currently in the process of getting a strategic partner to help in pumping in extra capital. The process, Mr Ciano added, was in the final stages and he would soon be making announcements to that effect. "The process of selecting the appropriate strategic partner will take the company closer to its journey to the Nairobi Stock Exchange, the ultimate objective of the rescue plan," said Mr Ciano.
Source: Allafrica