NAIROBI, Kenya, 13 – Listed firm East African Cables Group (EACG) has posted a 12 percent reduction in after tax profit for the nine months ending September 30.
EACG Managing Director George Mwangi said on Tuesday that the company’s turnover also dipped from Sh2.9 billion to Sh2.4 billion and attributed the slump to depressed sales to the regional power utility firms.
After tax profit dropped to Sh345 million down from Sh391 million posted in the same period last year.
“The Kenyan operations profits increased by 26 percent while Tanzania’s operation declined by 45 percent,” Mr Mwangi explained.
The firm’s profit run, he added, had also been eroded by the prevailing global economic slump that has seen a reduction in the global metal prices at the London Metal Exchange.
The cable maker however managed to post a positive growth in its copper segment which largely covers the domestic cables product range. Within the quarter, ongoing factory upgrades on the firm’s copper manufacturing lines marginally interrupted further growth on the copper segment.
The upgrade expected to be completed this last quarter will result in higher capacity, efficiency and new production capabilities, said Mr Mwangi.
East African Cables scooped the runners up position in the Institute of Certified Public Accountants of Kenya Financial Reporting Excellence Awards (Fire awards) Industrial, Commercial and Services category.
“The award will also serve to confirm to our shareholders and related stakeholders who deserve to access full, clear and timely information about our performance including our corporate social responsibility and corporate governance,” Mr Mwangi affirmed.
The FiRe Award seeks to institutionalise integrity and transparency in financial reporting process so as to assure confidence of those who rely on such information.