Kenya's Uchumi posts narrower FY pretax loss

PUBLISHED: Tue, 31 Jan 2017 07:34:36 GMT

Kenya’s Uchumi Supermarkets said its pretax loss narrowed to 2.67 billion shillings ($25.70 million) for the year ended June last year from 3.51 billion shillings, in results which got a qualified opinion from its auditors.

The chain closed some outlets last year, and is selling assets like land, after it sunk into deep losses due to mismanagement. It is also seeking fresh funds from shareholders who include the Kenyan government.

Several past Uchumi directors and executives are facing charges brought by the market regulator. Its results for the period, published in a local daily, were delayed by months over the saga.

Net sales plunged by half to 6.4 billion shillings during the year, Uchumi said, adding the narrower loss was caused by management interventions. It did not offer specifics.

KPMG Kenya, the auditor, issued a qualified opinion of the results, saying there was no audit evidence on property and equipment’s opening balances.

($1 = 103.9000 Kenyan shillings)

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