KENYA – Uchumi Supermarkets’ net loss in the half year ended December 2017 widened 63.5% to US$8.7 million on a sharp sales drop.
The retailer made a net loss of US$5.3 million in the same period the year before, with the performance coming after turnover declined 71.4% to US$5.37 million.
Administrative expenses fell 15.5% to US$9.8 million.
Uchumi has struggled to raise new capital to fund its operations which have been hit by closure of branches and stock-outs.
Private equity firm Kuramo Capital, which had been approached by Uchumi to inject US$34.3 million, pulled out and the retailer says it is now in talks with another investor from Asia.
“The management continues to work closely with the board in the implementation of a re-structure strategy aimed at returning the organisation to a positive and sustainable EBITDA position,” the company said in a statement.
“This has already begun to positively impact the business with significant reduction in operating costs as we rationalise the branch network and seek to relocate and open stores which are more financially viable whilst appealing to our customer base.”