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Longhorn Publishers issues an earnings warning
Friday 09 June 2023
A worker sorts books at the Longhorn Publishers warehouse in Nairobi’s industrial estate. file image | NMG
Longhorn Publishers issued an earnings warning for the year ending June 2023, citing rising paper costs, currency depreciation and shrinking consumer wallets.
The company expects its net profit during the period to decline by at least a quarter, which means it will not exceed its profit of Ksh39.9 million for the year ending June 2022.
“The reasons behind this decline in performance are rising costs, including the cost of paper that has increased by more than 75 percent in the past 12 months, currency depreciation, the lifting of interest rate restrictions in the second half of the fiscal year, and contraction,” the company said in a statement. Statement “Consumer portfolios arising from rising cost of living and general slowdown in business during the election period.”
The publisher, which is listed on the Nairobi Stock Exchange, recorded a net loss of NIS 98.3 million for the first six months ending in December 2022.
is reading: Longhorn plunges into losing half of Sh98m
Longhorn operates in nine markets – Kenya, Uganda, Tanzania, Rwanda, Zambia, Malawi, Democratic Republic of the Congo, Cameroon and Ghana.
The company says it is reviewing its business model across markets and will make “necessary changes” to achieve efficiency.
“These initiatives include exiting markets with lower economic prospects.”
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