Longhorn Publishers Kenya has reported a Sh183.6 million net profit for the year, up from Sh133.9 million reported in 2017.
The net profit by the publisher was confirmed on Monday and represents a 37 percent after tax profit for the financial year ended June 30, 2018.
The net sales generated by the firm increased from Sh1.4 billion to Sh1.6 billion which signified a 17 percent increase in comparison to the previous year.
The profit is attributed to the company’s implementation of the company’s 2015-2018 strategic plans that focused on product diversification, entry into new markets and growth of the digital offering according to the publishers’ Managing Director Simon Ngigi.
The company’s decision to save on operational efficiencies further bolstered gains which resulted in the growth of the firms’ operating margin from 16 percent to 21 percent.
Subsequently, there was an increment in the firm’s finance cost which reached Sh85 million from Sh52 million mainly because of prioritizing digital platforms.
The publisher is also looking to invest Sh100 million that will facilitate the digitization of books. More than 400 books under the publishers’ name have already been digitized.
In a statement, Longhorn Publishers CEO Maxwell Wahome stressed that as the firm embarks on a new strategic plan for the period 2018-2021, it will increase its focus on growing its digital products and expanding into new territories within Southern Africa and Francophone territories by offering innovative country-specific learning solutions.
Longhorn Publishers Limited is the largest book publisher in the East African region. Its headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Uganda and Tanzania and distribution in Malawi and Rwanda.