Table of Contents
Key Points
- Sameer Africa's 2024 profit surged 460% to $2 million, driven by forex gains and reduced finance costs after clearing debt.
- Despite a slight 0.26% revenue dip, gross profit rose significantly, supported by improved net finance income and forex gains.
- Merali family’s leadership and debt elimination were key to Sameer Africa’s turnaround, with assets and equity rising significantly.
Sameer Africa, the Nairobi-based tire manufacturer majority-owned by the influential Merali family, had an exceptional year in 2024, posting a profit of over $2 million, its highest in more than a decade. This marks a 460 percent increase from the previous year, driven by favorable foreign exchange gains and lower finance costs after the company paid off its debts in full.
Profit boosted by forex gains and reduced costs
Sameer Africa’s financial results for the year show a sharp increase in profit, which surged by 460.83 percent from Ksh46.34 million ($0.36 million) in 2023 to Ksh259.89 million ($2.01 million). This rebound was mainly fueled by an unrealized foreign exchange gain of Ksh83.6 million ($0.65 million), driven by the Kenyan shilling’s strength against the US dollar.
Despite a slight dip in revenue, down 0.26 percent to Ksh389.5 million ($3 million), it posted a solid gross profit of Ksh373.5 million. Operating profit fell 14.2 percent year-on-year to Ksh198.1 million ($1.53 million), impacted by rising costs and tax provisions in a foreign subsidiary.
The significant profit increase was mainly due to a sharp improvement in net finance income, which moved from a Ksh140.8 million ($1.09 million) loss to a Ksh68.8 million gain. This was supported by the foreign exchange gains as the shilling strengthened.
The company’s total comprehensive income rose to Ksh262.9 million ($2.03 million), while the elimination of outstanding borrowings helped lower interest expenses and bolster the balance sheet. Earnings per share increased to Ksh0.93 ($0.0072) from Ksh0.17 ($0.0013), highlighting the company’s strong financial recovery.
Merali family drives Sameer Africa’s resurgence
Sameer Africa’s impressive turnaround is largely attributed to the leadership of the Merali family, heirs to the legacy of the late industrialist Naushad Merali. With a controlling 74 percent stake, the Merali family has played a crucial role in guiding the company back to growth, drawing on their vast industry knowledge and influence in Kenya's corporate circles.
Based in Nairobi, Sameer Africa manufactures and distributes tires under its flagship Yana brand and also generates income from leasing its real estate assets. In 2024, the company's financials showed notable improvements, with total assets rising 16.1 percent to Ksh1.18 billion ($9.11 million), while shareholder equity jumped 56 percent to Ksh736 million ($5.68 million).
