Deacons Records 73 percent Jump in Profit After Tax driven by Growth in Sales

Leading fashion retailer, Deacons Kenya Limited has recorded a 73 per cent growth in after-tax profit driven by a 24 percent rise in sales across its 31 stores in the region.

Deacons recorded a net profit of Sh100.5million in 2015 up from Sh58million that was posted a year before largely driven by sales in its new stores: Bossini and Mr. Price stores in Acacia Mall in Kampala, Uganda and in Garden City Mall in Nairobi.

The company revenues increased by 24 per cent to stand at Sh2.3billion from Sh1.9billion over the same period in 2014 which management say was impressive in light of a tough economic environment.

“This outstanding performance was achieved despite the high interest rates and the weakening of the regional currencies that affected consumer purchasing power in markets where we operate,” explained Deacons Kenya Chief Executive Officer, Mr. Muchiri Wahome adding on that the company expects to stabilize the strong results as it continues with its expansion plans in 2016.

“We will be opening four stores in Two Rivers in Nairobi. We are also at an advanced stage to open a Mr. Price and a Bossini store at the modern Kigali Heights mall in Rwanda,” Mr. Wahome added.

In 2015, Deacons completed the sale of its 49percent share of Woolworths business in Kenya in a strategic initiative in order to invest and focus on wholly owned brands and franchises. The company now operates a total of 31 stores in Kenya, Uganda and Rwanda.

“We have launched a five year strategic plan starting 2016 to 2020 that includes diversified sources of supply and brands in order to take advantage of the new malls being developed in the region. Our efforts are geared towards giving customers a service experience and comfortable shopping environment that transcends from just the products,” said Mr. Wahome.

Deacons own and manage a chain of fashion and lifestyle retail stores which include: Adidas, Life fitness, Angelo, 4u2, Mr Price, Mr. Price Home, Truworths, Identity and Bossini. The stores offer fashionable clothing and apparel, footwear, and accessories for men, women, and children. Others include home textiles, kitchenware, and home accessories; products to athletes in various sports, fitness equipment for commercial and consumer needs; and baby products.

The company was founded in 1958 in Nairobi and its vision is to become the most trusted provider of desired lifestyle in Africa.