This archive report was first published on 17 September 2021.
Friday, September 17, 2021, marked a significant turning point for Longhorn Publishers Group, as the company bounced back to profitability following the reopening of schools in Kenya and other countries in the region.
According to the company's financial reports, Longhorn posted a net profit of Sh7.5 million for the full year to June 2021, a remarkable recovery from the Sh226 million loss incurred in 2020.
The return to profitability was largely attributed to the increased sales of competency-based curriculum (CBC) books and other learning materials in Kenya and other countries where the company operates.
Longhorn's Managing Director, Maxwell Wahome, noted that the company's operations were severely impacted by the Covid-19 pandemic, particularly in the first half of 2020, when schools were closed and movement restrictions were in place.
However, with the easing of lockdown measures and the reopening of schools, Longhorn's sales revenue rose by 16.5 percent to Sh1.24 billion in the year, with significant increases in sales revenue recorded in Uganda, Kenya, and Tanzania.
Uganda posted an 83 percent rise in sales revenue, while Kenya and Tanzania saw increases of 18 percent and eight percent, respectively.
Despite the company's return to profitability, the Longhorn board has frozen dividend payout for the second year in a row, citing the challenging business environment caused by the Covid-19 pandemic.
Finance costs increased by 21 percent to Sh183.2 million, mainly due to borrowings to support regional expansion, product diversification, and digital transformation.
However, management has indicated plans to reduce loan balances progressively as the company's performance improves, with borrowings and finance costs already reduced by approximately 30 percent in Q1 of the financial year 2022.
Longhorn plans to expand its regional presence to Ghana, following its entry into the Democratic Republic of Congo and Cameroon last year.
