Uchumi halves losses to Sh547 million amid falling sales

What you need to know:

Sales tanked to Sh1.3 billion in the half year period, blamed on stock outs after suppliers cut deliveries due to mounting pending payments.
The NSE-listed retailer reported a net loss of Sh547 million in the period under review.

Uchumi Supermarkets Ltd has halved its losses in the six months to December 2016 despite sales tumbling by more than two thirds.

The NSE-listed retailer reported a net loss of Sh547 million in the period under review compared to Sh1.01 billion in December 2015.

Sales tanked to Sh1.3 billion in the half year period, blamed on stock outs after suppliers cut deliveries due to mounting pending payments.

Uchumi reported sales of Sh4.2 billion in December 2015.

“The sales were significantly impacted by lack of optimal stock levels due to delays in funding,” Uchumi said in a trading update Tuesday.

Uchumi was quoted at Sh2.60 per share at 0712 GMT, a Sh0.10 drop from its last trading price at the Nairobi bourse.