advertisement

News

Uchumi narrows losses as auditors issue qualified opinion

JULIUS KIPNG’ETICH, UCHUMI SUPERMARKETS CEO. FILE PHOTO | NMG
JULIUS KIPNG’ETICH, UCHUMI SUPERMARKETS CEO. FILE PHOTO | NMG 

Uchumi Supermarkets #ticker:UCHM posted a 39 per cent improvement in its loss position in the financial year ended June in what it termed as “improved cost management”.

The retailer recorded a Sh1.7 billion loss after tax during the year, compared to a Sh2.8 billion in the previous year. Its net sales dropped 60 per cent to Sh2.6 billion.

“Despite the suppressed business in the current and past financial year, the company recorded improved margins,” Uchumi said in a statement published on Wednesday.

Qualified audit

The company’s auditors gave it an unfavourable opinion since they could not conclusively compare last year’s financial record to the previous year after Uchumi’s outlets in Uganda and Tanzania were shut down.

There were also asset write-offs during the financial year that made it difficult to compare the two years, the auditors said in their opinion.

The struggling listed retailer postponed announcement of its full year results by over a month in what it said was “to allow the company enough time to finalise aspects of the audit process with lenders and the government”.

In August, the government-owned listed firm issued a statement exuding confidence of a impending deal between it and a strategic investor who had pledged to pump in Sh3.5 billion to acquire a stake.

Uchumi shares are down 6.9 per cent so far this year to Sh3.38 each.

advertisement