Okumu was sent packing alongside Chief Executive Officer Jonathan Ciano for “gross misconduct and gross negligence/FILE
NAIROBI, Kenya, Nov 15 – Uchumi Supermarket has cut their losses by 40 percent in the 2017 financial year to Sh1.7 billion compared to Sh2.8 billion loss in 2016 attributed to improved cost management.
Expenses went down by 42 percent in the period under review from Sh3.6Bn in 2016 to Sh2.1Bn in 2017 while the cost of sales hit Sh2.5bn from Sh6.4bn in 2016.
The firm says that despite the suppressed business in the current and past financial year the firm recorded improved margins.
“The board and management continued to implement initiatives aimed at recovery and turnaround in performance including streamlining operations, strengthening management, and implementing improved operational processes,” Management said.
According to the firm, discussions are still ongoing with the potential strategic investor to inject Sh3.5 billion.
The firm is also waiting for the government to release Sh700 million loan in the 2018 financial year.
Uchumi has so far received Sh500 million out of the Sh1.2 billion the retailer was to receive from the Government.
“New fund development plans are being established to restock stores, secure locations of all branches ERP System enhancements, and management of the old supplier debt among other initiatives,” the firm noted.
The directors do not recommend any payment of a dividend.
