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  • News items and announcements for the year: 2021

    …as sales in the regional market grow and Tanzania subsidiary recovers

    Regional operating cables and conductors manufacturer, East African Cables has announced a more than 946% growth on its profit before tax in its just released half year trading results.

    In a classical validation of the firm’s return to profitability strategy announced earlier in the year, East African Cables efforts to grow its distribution channels through accredited dealers throughout the region appears to be paying off.

    The strategy which also focused on revitalizing the firm’s operations at its Tanzanian subsidiary has also registered positive recovery for the Dar es Salaam based arm which had earlier registered a huge loss.

    Tremendously, the strategy has served to raise the firm’s local and export sales affording the firm a turnover of more than Kshs 2.3 billion representing a 29% growth up from Kshs 1.8billion posted within the same period last year.

    Speaking when he announced the results, East African Cables Group CEO Mr. George Mwangi, confirmed that the turnaround adopted by the firm is firmly on course, managing to earn Kshs 249million profit before tax up from Kshs 23million registered during the same period last year.
    “We acknowledge that customers are seeking for more value and the winners of tomorrow must be dynamic and responsive to market trends,” Mwangi said.

    And added: “Investing in customer relations and building strong partnerships with stakeholders with strong emphasis on a more environmentally and socially responsive business remains our priority.”

    With an operating profit jump of Kshs 317million up from Kshs 238million, Mwangi attributed the firm’s growth to increased sales in the regional markets and the recovery of the firm’s Tanzania operations.

    During the same period last year, East African Cables had suffered an after tax loss of Kshs 56Million which has now been turned around to a Kshs 172million profit.

    “Despite the prevailing economic challenges in the region, we expect to maintain the current positive business trend,” Mwangi said.

    Earlier in the year during the firm’s investor briefing, East African Cables had outlined plans to further increase its market with expanded capacity and a mix of new products and market forays within and beyond the East Africa region.

    In a first for a sub-Saharan cables manufacturer, East African Cables has already commenced production of aerial bundled conductors (ABC) which are much safer and more environmentally friendly for power transmission. In addition, East African Cables has introduced crosslink polyethylene cables (XLPE) which have the ability to carry more current for the same size of cable compared to PVC cables and have better strength at high temperatures.  The company has also commenced manufacture of Halogen Free Flame Retardant (HFFR) cables which is a first for any cable manufacturer in the region.

    Besides the new products, East African Cables has moved to entrench its market footprint in key East, Central and horn of Africa countries including Burundi, Eastern DRC and Southern Sudan this year alongside its operations in Kenya, Tanzania, Uganda and Rwanda. The additional capacity commissioned positions the company to take advantage of demand in these markets.

    Ends
     

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