On Wednesday, Kenya-based East African Cables announced that the company has suffered a Sh741.21 million ($7 million) full-year net loss in 2015 from a profit of Sh341.15 million ($3 million) in 2014 on reduced sales, The Star reported.
East African Cables identifies causes
This loss has been directed at the disruption of production after the firm closed its doors for refurbishments in addition to foreign exchange losses due to a 12.9% depreciation of the shilling against the dollar in 2015, local media reported.
[quote]The cable manufacturer, who supplies electrical wires to state utilities, said that sales dropped by 27.06% to Sh3.72 billion ($29 million) from Sh5.10 billion ($49 million) a year earlier.
The Star reported that the company, which has a network expanding across East and Central Africa, did not see huge benefits through the nearly 1 million new electricity connections in 2015, which was facilitated by state-owned power utility Kenya Power.
Optimism is high
Former Safaricom chief commercial officer Peter Arina replaced East African Cables’ CEO, George Mwangi, in September 2015, following a company net profit dip for two consecutive years.
According to The Star, figures dropped by 14.33% in 2014 and 23.72% in 2013.
With the power industry geared for bigger and better things this year, the firm is optimistic that this will have a positive impact on their profit margins.
Company secretary Virginia Ndunge, said in a statement: “The group opened the year with a strong order book spurred by developments in the energy and construction sectors in the region.
“The expanded factory provides us with an opportunity to serve the regional economies more efficiently and give value to our stakeholders.”