Express Kenya narrows half year loss to Sh7.2 million

Logistics and real estate firm Express Kenya #ticker:XPRS has cut its half year loss by 68.7 percent to Sh7.2 million, supported by reduced costs.

The loss, from Sh22.5 million posted in the first half of last year, was despite revenues dropping 23 percent to Sh10.7 million. However, direct costs reduced by 39 percent to Sh8.5 million compared with Sh13.9 million incurred the previous half year. At the same time, administrative expenses dropped 33.4 percent to Sh11.5 million, helping take pressure off the bottom-line.

CEO Hector Diniz described the performance as “stable”, adding it has helped reduce loss per share. In June last year, loss per share was Sh0.64 compared with Sh0.20 in the review period.

“This is due to the cost rationalisation-direct costs and other operating expenses- implemented during the period thereby reducing the loss per share,” said Mr Diniz. Express Kenya’s clearing and forwarding services for air and sea business as well as warehousing and logistics encounters stiff competition.

It has been in losses for the last five years. It last posted a profit in 2012, being only Sh230,000 compared with Sh73.6 million profit booked in 2007.

Its troubles started in 2011 when it lost to DHL a lucrative contract to handle distribution of East African Breweries Limited products.