NAIROBI, Kenya, Aug 19 – Listed firm Deacons East Africa has posted Sh52.6 million loss in their half year ended June 30, 2016, a marginal improvement from the same period last year when the firm posted Sh53.7 million loss.
The firm which is the only fashion brand listed at the Nairobi bourse attributes the loss to huge finance costs during the period due to high bank interest rates in the region.
In the period under review, expenses went up by 19 per cent driven by costs incurred in opening up six new stores at Garden City, The Hub Karen as well as Acacia Mall in Uganda.
The firm also highlights the escalation of US Dollar based rentals in a number of stalls owning to the appreciation of the US dollar against regional currencies.
Revenue however went up to Sh1 billion compared to 949 million recorded same period last year, while total assets went down to Sh1.8 billion from Sh2.4 billion recorded same period.
The firm however is optimistic about the revenue growth in the second half of 2016 following the review of prices at the Mr. Price stores, good summer stock levels as well as increase in sales from the new stalls.
“The exciting new developments at Two Rivers (Mr Price Apparel, Mr Price Home, Bossini and Adidas) and Kigali Heights Rwanda (Mr. Price Apparel and Bossini) are significantly delayed the group has rescheduled the openings to the fourth quarter of 2016,” the firm states.
The firm plans to add new brands to its existing stable of 10 brands by the end of the year.
The directors do not recommend payment of an interim dividend.