East Africa’s leading apparel and household goods retailers, Deacons East Africa (EA) posted a net loss after tax of KSh180.4 million for the first half of 2017 from KSh52.6 million reported last year.
Deacons’ revenue increased five per cent to KSh1.07 billion compared to Sh1.03 billion in a similar period last year, while net operating profit shrunk by 32 per cent.
Deacons EA chief executive Muchiri Wahome attributed the loss to Kenya’s elections which reduced consumer demand and spending.
It should be noted that Centum Investments is set to buy a 5.53 per cent stake in the firm following an agreement to purchase Aureos East Africa Fund’s entire stake.
Deacons has more than 40 stores spread across the East African region including Kenya, Rwanda, Uganda, and Mauritius. It has also been going through financial turmoil with an operating loss of Ksh 385 million for the 2016 Financial Year from an operating profit of Ksh141.6 million in the 2015 Financial Year.