Sameer Half-Year Profits Up 54%

Sameer Africa recorded a 54 per cent increase in pre-tax profit to Sh113.8 million (£836,000) during the first six months of 2006. These results are very good news for the Kenyan tyremaker, who in March reported losses amounting to £164,000 as a result of low price imported tyres.

Sameer’s sales rose 14 per cent from Sh1.6 billion (£11.8 million) in June 2006 to Sh1.7 billion (£12.5 million) in June 2007. The company reported in a statement that this growth came via a 6 per cent boost in the sales of Yana brand tyres. However, despite the positive results the company’s board has not recommended payment of an interim dividend.

An upbeat second half of the year is anticipated to come in the wake of expanding national gross domestic product during 2007, with domestic market sales improving and further inroads made into the Common Market for Eastern and Southern Africa countries. On the flipside, Sameer is aware it also faces increasing energy costs and East African Community tariffs that facilitate the plentiful entry of cheaper imports. For the past two and a half years a low ten per cent tax on imported tyres has enabled them to retail for less than their local counterparts.