Uchumi Supermarkets Swings Back to Profit in FY25 as Sales Surge 88%

Uchumi Supermarkets has posted a remarkable turnaround in its FY25 management accounts, swinging to a KSh8.8 million net profit from a KSh49.7 million loss in FY24.

Sales surged 88% year‑on‑year to KSh123 million, underscoring the retailer’s recovery momentum after years of restructuring and operational challenges.

Revenue and Margins

• Sales climbed to KSh123 million, reflecting stronger trading activity across outlets.
• Gross profit rose 79% to KSh27.7 million, delivering a margin of 22–23%, showing Uchumi is rebuilding profitable volumes rather than chasing growth at any cost.

Other Income and Total Earnings

• Other income jumped 363% y/y to KSh62.7 million, driven by asset‑related and one‑off inflows.
• Total income reached KSh90.4 million, up 212% versus FY24, providing a stronger earnings base to absorb operating costs.

Operating Costs and Profitability

• Administration costs fell by a third to KSh20.5 million, reflecting tighter overhead management.
• Staff costs rose 62% to KSh37.6 million due to rehiring and settlement of obligations, but improved operating leverage supported profitability.

Bottom Line Turnaround

• Net profit of KSh8.8 million in FY25 marks a sharp reversal from FY24’s KSh49.7 million loss.
• The return to profitability signals that revenue growth, cost discipline, and restructuring gains are taking hold.

Payments to Creditors

• Uchumi reports settling 95% of planned obligations to creditors, including banks, legal fees, and salary arrears.
• This clean‑up of liabilities strengthens supplier and lender confidence, bolstering the retailer’s credibility as it pursues further growth.

Outlook

The FY25 results highlight Uchumi’s progress in stabilizing operations and rebuilding trust with stakeholders. Sustaining profitability will depend on maintaining trading momentum, managing staff costs, and leveraging restructuring gains.

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