, NAIROBI, Kenya, Feb 21 – Local publisher Longhorn Kenya has posted a 51 percent rise in its net profit in first half of 2013/14 to Sh30.15 million from Sh16.92 million recorded in the same period of 2012.
Sales volumes rose by 6.2 percent to Sh558 million from Sh525 million recorded in the same period in 2012 driven by government tenders to supply books in Malawi, Rwanda, Tanzania and Uganda.
Direct expenses rose 16.5 percent to Sh276.8 million from Sh237 million driven by marketing as well as school-to-school distribution costs.
Employee, operational and administrative expenses climbed 64.5 percent to 188 million shillings fromSh114 million posted in 2012.
The company is particularly investing for long term growth and thus it’s hiring more personnel, whose benefits are expected in the medium to long term.
The Kenyan market has continued to face challenges with the introduction of 16 percent VAT on books in September 2013 as it reduced the amount allocated for books per child by 16 percent.
The publishers acquired an additional 43 titles from one of the largest local publishers of revision and other primary and secondary school books, Malkiat Singh in late 2013 in a bid to expand its product offering.
Such acquisitions along with electronic publishing are some of the measures that the company hopes will sustain future growth.