Deacons East Africa Plc has released its half year financial results for the period ended in June 2017, citing revenue increase to 1.07 billion shillings compared to 1.02 billion in a similar period last year. The group registered a loss after tax of 180.4 million shillings compared to a loss of 56.2 million in 2016.Total operating expenses increased by 12 per cent as a result of increase in number of stores and staff rationalization effected in May this year.
“The overall retail trading environment during the period under review was characterized by extraordinary and exceptional events that adversely affected the business.” Muchiri Wahome Deacons EA plc CEO
Inflationary pressure, poor performance of major supermarkets that are anchor tenants to the stores reduced traffic into the malls, aggressive sale offers, expansion costs, rise of e-commerce are some of the factors that adversely affected the performance.
Deacons EA plc’s principal business is to operate retail establishments including franchise and department stores selling ladies, men’s and children’s clothing, footwear, accessories, toiletries, gifts amongst other items in East Africa.