, NAIROBI, Kenya, Dec 18 – Car and General has posted Sh127 million net profit, in the 2015 full year results, a 54 percent drop from the previous year that recorded Sh278 million.
The firm has attributed the decline to the depreciation of the Kenya, Uganda and Tanzania shillings that has seen the firm realize foreign exchange losses of Sh300 million.
The firm was also unable to increase prices to cover the devaluations owing to competition and consumer pressures.
Revenue however went up to Sh9.9 billion up from Sh8.2 billion recorded same period last year.
Going forward the firm foresees challenges in the economic environment owing to the state of the global economy and governance issues across the region.
“Interest rates have also increased, and are likely to reduce economic activity. Key to success will be higher efficiency levels in all areas of our business maintaining market share in all our core products and achieving satisfactory profitability,” the management said.
The directors have resolved not to recommend a dividend to shareholders.