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The rise in profit by 387 percent was mainly attributed to an increase in gross profit as well as lower finance costs/FILE

Kenya

KenolKobil issues dividend for first time in 4 years

The rise in profit by 387 percent was mainly attributed to an increase in gross profit as well as lower finance costs/FILE

The rise in profit by 387 percent was mainly attributed to an increase in gross profit as well as lower finance costs/FILE

NAIROBI, Kenya, Aug 11 – KenolKobil Group has announced first half 2015 results posting a net profit of Sh918million compared to Sh531million made in same period last year.

The rise in profit by 387 percent was mainly attributed to an increase in gross profit as well as lower finance costs.

Given its return to profitability and significant reduction in debt, the management highlighted plans to pursue innovative growth opportunities and investments.

“This achievement follows the return of the group to profitability with robust structure entrenched in place and performance driven culture which helped overcome the challenges presented in the global and local economic environments during the period under review,” Managing Director David Ohana said.

READ: KenolKobil’s 2014 net profit hit Sh1bn mark

Net borrowing of Sh8billion reduced by Sh1.4billion from Sh9.4billion in December 2014. “This trend is expected to continue throughout the remaining half of 2015.”

For the first time in four years, the company has decided to issue an interim dividend of 10 cents, with books closure scheduled for September 10, 2015.

“The directors recommend the payment of an interim dividends of Sh0.10 per share(less withholding tax where applicable), payable to the shareholders registered on the Register of Members at the close of business on September 10, 2015,” he said.

On its subsidiaries, management highlighted that it will continue to focus on high margin business segments as well as grow the retail sector, from which it expects performance to be maintained into second half.

“The subsidiaries performed according to expectations and have satisfactorily contributed towards these good results. Given the extensive management effort to grow the retail sectors and focus on high yield margin business segments, we expect good performance in the second half of 2015,” Ohana said.

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The company also expects downward trend of oil prices to continue during the second half which they anticipate will half a positive impact on the company’s bottom line.

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