Deacons EA net loss widens to Sh180.4m

Fashion retailer Deacons East Africa has announced a net loss after tax of Sh180.4million for the first half of financial year 2017, widening from Sh52.6million the retailer reported in 2016.

During the period under review, the firm’s revenue increased 5 per cent to Sh 1.077B compared to Sh1.026B in a similar period last year, while net operating profit shrunk by 32 per cent, which was blamed on a reduction in margins by a major brand.

The firm attributed the loss to elections which it said reduced consumer demand and spending coupled by other factors.

“The overall retail trading environment during the period under review was characterized by extraordinary and exceptional events that adversely affected the business,” said Deacons EA chief executive Mr. Muchiri Wahome, adding that the firm would be introducing an e-commerce platform to remain competitive in the industry.

Total operating expenses increased by 12 per cent as a result of increase in number of stores and the staff rationalization that was effected in May 2017.