Selam Bus share company has posted an impressive profit in midst of declining services around the country.
It reported a net profit of 33 million Br, compared to 29.7 million in 2015, exhibiting a hike of 11pc.
This is a positive result, considering its nearest competitor, Sky Bus S.C., loss of 400,000 Br in 2014/15.
For Selam, its income increased by 14.5pc to 259.1 million Br as demands went up and a noted decrease of its services in parts of the country due to the recent unrest.
Last year, it lost 8.5 million Br that was linked to a widespread protest in the Oromia region as it was forced to cancel 650 travels to Neqemte and Assosa.
The Oromia region has been facing civil unrest for a good part of the year because of the government’s plan to allocate farmland for development in the region, which is a suburb of the capital. The regional protest has since spread in many parts of the country and caused a loss lives and millions of dollars in property damages.
However, the latest financial statement does not include the financial loss of the company as a result of the Gonder civil unrest that was started due to clashes between members of Welqayit committee and Anti-Terrorism special force. In time, it spread to towns such as Debarq and Bahir Dar.
Selam is one of the companies visibly affected by the protests as it was forced to close its office in Gonder and suspended its service from July 2016 to mid November 2016. It has seen its buses burn down and it is estimated that it lost between 2.5 to five million Br.
However, the company was able to earn over 223 million Br using its 55 buses, up from 190 million Br last year. Its income from fuel sales showed a slight decline by two percent to 36 million Br. Earning per bus was four million Br and nearly met the company’s full target by 93pc.
Established in 1996, it become operational with 25 IVECO buses and pioneered a special bus service in 2005.
The company was founded by Tigray Development Association and transitioned in to a share company seven years later. Currently, it has over 1,600 shareholders owning 20,000 shares.
The income growth has not been without cost.
3915 Views Comments
Louvres Hotel Group, number one hotel group in East Africa, signed its 3rd hotel in Ethiopia, pursuing the expansion of an ambitious network covering sub-Saharan
5834 Views Comments
Safaricom has denied reports of the company entering into the Ethiopian market. The Kenyan telco had been said to be gearing up for its first venture
3955 Views Comments
Flying even more greener; Ethiopian Airlines Group, the largest airline in Africa, is pleased to announce that it has fully digitalized all its business processes