WPP Scangroup reported a loss of Sh254 million for the six month period ended June 30, 2026, 22 per cent up from Sh208.3 million in the prior year.
Gross profit declined 34 per cent to Sh539.7 million from Sh814.5 million previously, which the Group attributed to a challenging trading environment, reduced client spending across key accounts and full year impact of lost client accounts.
Despite the weaker top line, operating losses actually narrowed 3 per cent to Sh257.3 million from Sh265.6 million, after the Group cut operating and administrative expenses by Sh283 million on the back of restructuring initiatives carried out in 2025 and tighter control of overheads.
The board of directors did not recommend the payment of an interim dividend.
WPP Scangroup said it is executing a two-year strategy aimed at returning the business to break-even by 2027 and back to profitability, with a focus on stabilising revenues, strengthening commercial and cost discipline, and improving the quality and mix of revenue.
"While the operating environment remains challenging, the Group remains committed to building a more efficient, commercially disciplined and sustainable profitable business that delivers long-term value to shareholders," the Board said in a statement accompanying the results.
The results follow a period of significant disruption for the marketing giant, which has been contending with client attrition and boardroom battle.
Founder and former CEO Bharat Thakrar recently failed in his bid to oust WPP Scangroup's board, after majority shareholder WPP used its 56.26 per cent stake to vote down resolutions to remove directors and replace the CEO and chair.
Minority shareholders holding a combined 13.59 per cent stake, including Mr Thakrar, had forced the ouster vote onto the AGM agenda, pointing to a string of poor financial results, a 62 per cent slide in the share price since Mr Thakrar's exit in 2021, and the loss of major clients such as KCB, Equity, NCBA and Airtel Africa
They also flagged the terms of a Sh1.2 billion loan the Group has extended to parent firm WPP at a five per cent interest rate, which they argue undercuts prevailing market rates.
While a majority of the minority shareholders who voted at the AGM backed the ouster bid, their combined shareholding was no match for WPP's block vote, and the resolutions were defeated.
