Key Factors
- Sameer Africa’s 2024 revenue surged 460% to $2 million, pushed by foreign exchange good points and decreased finance prices after clearing debt.
- Regardless of a slight 0.26% income dip, gross revenue rose considerably, supported by improved web finance revenue and foreign exchange good points.
- Merali household’s management and debt elimination have been key to Sameer Africa’s turnaround, with belongings and fairness rising considerably.
Sameer Africa, the Nairobi-based tire producer majority-owned by the influential Merali household, had an distinctive 12 months in 2024, posting a revenue of over $2 million, its highest in additional than a decade. This marks a 460 p.c improve from the earlier 12 months, pushed by favorable overseas change good points and decrease finance prices after the corporate paid off its money owed in full.
Revenue boosted by foreign exchange good points and decreased prices
Sameer Africa’s financial results for the year show a sharp increase in profit, which surged by 460.83 p.c from Ksh46.34 million ($0.36 million) in 2023 to Ksh259.89 million ($2.01 million). This rebound was primarily fueled by an unrealized overseas change acquire of Ksh83.6 million ($0.65 million), pushed by the Kenyan shilling’s power in opposition to the US greenback.
Regardless of a slight dip in income, down 0.26 p.c to Ksh389.5 million ($3 million), it posted a stable gross revenue of Ksh373.5 million. Working revenue fell 14.2 p.c year-on-year to Ksh198.1 million ($1.53 million), impacted by rising prices and tax provisions in a overseas subsidiary.
The numerous revenue improve was primarily resulting from a pointy enchancment in web finance revenue, which moved from a Ksh140.8 million ($1.09 million) loss to a Ksh68.8 million acquire. This was supported by the overseas change good points because the shilling strengthened.
The corporate’s whole complete revenue rose to Ksh262.9 million ($2.03 million), whereas the elimination of excellent borrowings helped decrease curiosity bills and bolster the stability sheet. Earnings per share elevated to Ksh0.93 ($0.0072) from Ksh0.17 ($0.0013), highlighting the corporate’s sturdy monetary restoration.
Merali household drives Sameer Africa’s resurgence
Sameer Africa’s spectacular turnaround is essentially attributed to the management of the Merali household, heirs to the legacy of the late industrialist Naushad Merali. With a controlling 74 p.c stake, the Merali household has performed an important function in guiding the corporate again to development, drawing on their huge trade data and affect in Kenya’s company circles.
Based mostly in Nairobi, Sameer Africa manufactures and distributes tires beneath its flagship Yana model and in addition generates revenue from leasing its actual property belongings. In 2024, the corporate’s financials confirmed notable enhancements, with whole belongings rising 16.1 p.c to Ksh1.18 billion ($9.11 million), whereas shareholder fairness jumped 56 p.c to Ksh736 million ($5.68 million).
