EA firms defy harsh times to post good earnings

East Africa’s listed firms look set to post impressive 2012 results after getting off to a rocky start, as they turn to cost-cutting and building their cash positions to reverse their fortunes.

An analysis by our sister publication, The EastAfrican, of at least 25 listed companies in Kenya, Uganda, Tanzania and Rwanda — which have released their results for the half year ending June 2012 — shows, among others, that managing or raising cash has either left the firms in a good position to expand and gain market share in the remaining half of 2012 or reward shareholders with high dividends pay out compared to the same period a year ago.

Further, foreign exchange losses, fluctuations in global oil prices and high financing costs have hurt businesses, especially those dealing in international trade, say, oil marketers and airlines.

Harsh economic conditions looked set to put brakes on the profit-making machinery of East Africa’s listed firms after a relatively easy 2011.

Read the full edition of the story in The EastAfrican on sale on Saturday