By James Anyanzwa
Sameer Africa Ltd withered a hostile operating environment to rake in a 139 per cent growth in profit last year.
The tyre makerâs full-year profit before tax (PBT) rose to Sh148.44 million, up from the previous yearâs Sh62.19 million.
But this is despite a harsh trading environment characterised by high interest rates, volatile exchange rate, high cost of raw materials in the first half of the year, and political unrest in the Middle East, which led to increases in fuel and energy costs.
"In 2011 we had aggressively protecting margins despite the challenging micro and macro-environment," explained Issa Timamy, the company secretary.
Although the Groupâs share of loss in associate firms rose to Sh11.62 million, up from Sh2.64 million, its total income for the period jumped 230 per cent to Sh81.64 million, up from Sh24.74 million during the previous year.
According to the Groupâs audited financial statements, turnover grew by 10 per cent to Sh3.67 billion, from Sh3.34 billion in 2010.
Earnings per Share (EPS) grew 67 per cent to 35 cents from 21 cents in a similar period.
The Groupâs performance was, however, impacted by the unprecedented depreciation of the shilling and other East African currencies against the US Dollar.
The company said it expected elections to be held by March next year to be conducted peacefully.
"This together with observed commitment to the implementation of the East African Community ( EAC) common market gives optimism for improved performance this year," it said. The board recommended payment of a first and final dividend of 20 cents per share subject to the approval of the shareholders at an Annual General Meeting on June 15.