Merali family’s Sameer Africa reports $2.1 million 2025 profit

Sameer Africa, the Nairobi-based tire manufacturer majority-owned by the influential Merali family, delivered a strong financial performance in the year ended 31 December 2025, building on the previous year’s momentum when it recorded its highest profit in more than a decade.

The performance, which registered a single-digit increase when compared to the prior year’s blockbuster report, was underpinned by revenue growth, improved operating efficiency, and higher profitability across key metrics. The company recorded its highest earnings in recent years, supported by disciplined cost management and improved operating leverage.

Profit rises on stronger operations and cost discipline

Sameer Africa’s profit for the year rose by about 5.53% to Ksh274.28 million ($2.12 million), up from Ksh259.90 million ($2.01 million) in 2024, reflecting a steady recovery rather than a one-off surge. The performance was driven largely by stronger operating fundamentals, as operating profit climbed 48% to Ksh292.64 million ($2.27 million), up from Ksh198.08 million ($1.53 million) the previous year.

Total comprehensive income for the year rose marginally to Ksh274.49 million ($2.12 million), reinforcing the stability of earnings even as non-operating contributions softened compared to the prior year

Revenue growth and operational efficiency drive performance

The group’s revenue increased by 11.11% to Ksh432.74 million ($3.35 million), up from Ksh389.48 million ($3.01 million) in 2024, reflecting improved sales momentum and better utilisation of its operating base. While operating expenses declined significantly compared to the previous year, the improvement in cost structure played a key role in lifting operating profit margins. This cost optimisation strategy helped offset weaker contributions from net finance income and other non-core items.

Balance sheet strengthens significantly in 2025

Sameer Africa’s balance sheet also strengthened significantly, with total assets climbing by 13.04% to Ksh1.72 billion ($13.31 million), up from Ksh1.52 billion ($11.78 million), while shareholders’ funds rising 37% to Ksh1.01 billion ($7.82 million), driven by retained earnings growth. Earnings per share increased to Ksh0.99 ($0.0077) from Ksh0.93 ($0.0072), signaling gradual value creation for investors.

The company generated Ksh191.78 million ($1.49 million) in operating cash flow, although investing and financing outflows moderated overall liquidity. Cash and bank balances closed at Ksh173.14 million ($1.34 million).

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% 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.

Despite improved results, the board did not declare a dividend, opting to retain earnings to strengthen the balance sheet and support future expansion. Overall, Sameer Africa’s 2025 results reflect a consistent recovery led by operational efficiency, stronger revenue growth, and improved financial stability.