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Deacons HY 2011 results
the deal
#11 Posted : Tuesday, August 02, 2011 9:01:13 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
VituVingiSana wrote:
Operating Margins is NOT the same as Net Profit Margins. Since you are a 'young' analyst, I shall not blast you but refer you to a few Finance Textbooks.

2 firms with the same sales, margins, etc but different Capital Structures will have different NPM even if the OM is the same.

Ok net profit margins it is...Olympia and Deacons have the same net profit margins...Olympia sells building materials...Deacons sells Clad...smile
KenyanLyrics
#12 Posted : Wednesday, August 03, 2011 12:28:55 AM
Rank: Veteran

Joined: 4/16/2010
Posts: 906
Location: Nairobi
OK guys, I know this might have been discussed before, but where do Deacons get their money from? Apart from Mr. Price, the rest seem rather empty to me whenever I pass them in the big malls. Do they have other revenue streams apart from retail?
VituVingiSana
#13 Posted : Wednesday, August 03, 2011 12:38:51 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
@KL - Which stores do you go to? And when?

These stores depend on traffic from specific 'clients' who shop at certain times...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
youcan'tstopusnow
#14 Posted : Wednesday, August 03, 2011 12:42:27 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Deacons secures Dubai baby wear franchise deal

http://www.businessdaily...98/-/rr9b87/-/index.html
GOD BLESS YOUR LIFE
KenyanLyrics
#15 Posted : Wednesday, August 03, 2011 9:18:09 AM
Rank: Veteran

Joined: 4/16/2010
Posts: 906
Location: Nairobi
VituVingiSana wrote:
@KL - Which stores do you go to? And when?

These stores depend on traffic from specific 'clients' who shop at certain times...

I pass by the Deacons stores in Village Market, Westgate, town and Sarit regularly, and occasionally see the ones in Junction and Prestige. I have never seen more than 10 customers in a store at any given time. The busiest one I've seen is the Mr. Price in town, which has moderate, but steady walk-in traffic.

Comparing this to my experience with clothes stores from abroad, the traffic in those stores was like a feeding frenzy! People leaving with hands full of bags, lining up outside the store in the morning... I remember during my short tour, how once I had to settle for a small size Grant Hill basketball jersey, because the XXL ones were sold out. Another time during winter I found it hard to find those puffy jackets in the store cause they were sold out. This experience of mine just makes me wonder where Deacons are getting their money from, because it doesn't seem to me like they have a good amount of walk-in traffic :-/
the deal
#16 Posted : Wednesday, August 03, 2011 9:37:00 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
@KenyaLyrics Deacons sales per square foot is Sh7680 Do you know how much one pair of jeans cost in Woolworth or Mr Price Deacons? Also remember they have 25 mega shops across E.A. Please next time you window shop check the prices too or buy something...LOL...read more here http://www.contrarianinvestingkenya.info
ProverB
#17 Posted : Wednesday, August 03, 2011 9:48:40 AM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
the deal wrote:

operating margin/net profit margins are all the same...


I so disagree.

the Muganda wrote:
So on page 5 of Business Daily, Deacons Half Year 2011 results, much earlier than their last results...
Showing 38% growth in turnover, leading to a 51% growth in profit before tax (73% after tax) backed largely by the new store revenue (4 new ones).

So only thing to look up to is another 4 planned new stores by end of 2011.


..apparently they are turning to Baby wear and accessories in a big way.. the franchise deal confirms the rumor
http://www.businessdaily...8/-/rr9b87/-/index.html
..a walk down biashara street lets you know how much business comes with babies!! when was the last time you saw Napkins?? A shop in buru is stocked only with diapers!!
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
VituVingiSana
#18 Posted : Wednesday, August 03, 2011 10:15:12 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
@KL - I agree these stores will not be as busy as USA stores but they are doing OK for now. The BIG question is...

What happens to Deacons (or other aspirational firms) if Kenya gets stuck with STAGFLATION?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
the deal
#19 Posted : Wednesday, August 03, 2011 10:28:22 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
VituVingiSana wrote:
@KL - I agree these stores will not be as busy as USA stores but they are doing OK for now. The BIG question is...

What happens to Deacons (or other aspirational firms) if Kenya gets stuck with STAGFLATION?

Theyre not doing Ok...theyre struggling to do OK...bdw buying Deacons at Sh62.5 is a rip off...
KenyanLyrics
#20 Posted : Wednesday, August 03, 2011 11:06:31 AM
Rank: Veteran

Joined: 4/16/2010
Posts: 906
Location: Nairobi
the deal wrote:
@KenyaLyrics Deacons sales per square foot is Sh7680 Do you know how much one pair of jeans cost in Woolworth or Mr Price Deacons? Also remember they have 25 mega shops across E.A. Please next time you window shop check the prices too or buy something...LOL...read more here http://www.contrarianinvestingkenya.info

I just find it strange that such an empty retail store has actually reached IPO stage. Stranger still, no Wazuans seem to be asking questions about it...
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