Express Kenya PLC, a listed logistics and warehousing firm, has issued a profit warning for its 2024 financial year, citing significant economic challenges and operational inefficiencies. The company anticipates earnings for the year ending December 31, 2024, will decline by at least 25% compared to the previous year.
In a cautionary statement released to stakeholders, the Board of Directors noted that the firm’s warehousing operations remain under pressure due to lower demand and a challenging economic climate. “The company has been faced by adverse economic challenges this year, which has significantly impacted its operational efficiency and bottom line,” the statement read.
Express Kenya highlighted reduced income stemming from weakened economic activities as a key factor driving the anticipated decline in performance. This downturn has led to a “negative impact on the business performance,” compounding the company’s struggle to sustain growth in a constrained market environment.
Despite these headwinds, the Board expressed its commitment to implementing strategies aimed at stabilizing operations and improving financial performance. “The Board and Management are focused on enhancing the Company’s financial performance through improving operational efficiency, growing income, reducing losses, implementing cost-saving initiatives, and exploring new strategies to weather the economic storm,” said Dr. C.W. Obura, Chairman of the Board.
The profit warning comes as businesses across various sectors in Kenya grapple with slower economic growth, rising inflation, and demand shocks. Express Kenya is among a growing list of companies feeling the strain as global and domestic economic conditions remain uncertain.
Issued with approval from the Capital Markets Authority, the announcement signals the company’s transparency in addressing its current challenges.
