The loss after tax for Uchumi Supermarket has increased by 63.6 percent to 895 million shillings as compared to 2016.
The ailing retailer has released the results with poor bottom-line numbers after suspending the process in December 2017.
Revenue fell by 71.5 percent on a year-to-year basis to 526.97 million shillings while the cost of sales reduced by 67.3 percent on a year-to-date basis to 380 million shillings.
Operating expenses declined 15.5 percent on the back of a reduced workforce due to the closure of some branches in East Africa.
Cash from operations remains negative albeit an improvement from 1.11 billion shillings in 1H17 to 340 million shillings.
Additionally, the company’s equity position went deeper to the negative at 4.3 billion shillings from 2.64 billion shillings in 1H17.
The directors did not recommend payment of an interim dividend to its shareholders.
Kuramo Capital was to inject 3.5 billion shillings into the retailer to plug in a 5 billion shilling debt owed to suppliers.
Currently, the retailer is negotiating with an Asian equity investor who is expected to give the firm a lifeline. The retailer received 1.2 billion shillings from the government in 2017 which was used to restock branches.
The stock is currently trading at 3.35 shillings per share and continues to attract speculative activity from retail investors.
