This archive report was first published on 28 August 2019.
Express Kenya, a logistics and real estate firm, has been struggling with losses for the past five years. The company last posted a profit in 2012, with a meager Sh230,000, compared to the Sh73.6 million profit it booked in 2007.
Its troubles began in 2011 when it lost a lucrative contract to handle the distribution of East African Breweries Limited products to DHL.
However, in the first half of 2019, Express Kenya managed to narrow its loss by 68.7 percent to Sh7.2 million, thanks to reduced costs. The loss was from Sh22.5 million posted in the same period last year.
Despite a 23 percent drop in revenues to Sh10.7 million, the company was able to reduce its direct costs by 39 percent to Sh8.5 million, compared to Sh13.9 million incurred in the previous half year. Administrative expenses also dropped by 33.4 percent to Sh11.5 million, helping to ease the pressure on the bottom line.
Express Kenya's CEO, Hector Diniz, described the performance as 'stable', adding that it has helped reduce the loss per share. In June last year, the loss per share was Sh0.64, compared to Sh0.20 in the review period.
According to Mr. Diniz, the cost rationalization implemented during the period has contributed to the reduction in loss per share.
Express Kenya's clearing and forwarding services for air and sea business, as well as warehousing and logistics, face stiff competition.
