Stocks set to spike as annual results trickle in

Revenues last year were lower at Ugx 242.5bn. Directors have announced a Ugx 141 per share dividend; this should put a smile on many faces.In a statement, Nicolas Ecimu says on behalf of the BATU board that cigarette sales volumes declined 19% due to illicit trade. The high taxes on cigarettes resulted in higher prices, this effectively swayed consumer toward cheaper smuggled products. Costs of decommissioning a processing plant and compensation to contract farmers dented profits as much as Ugx 35bn. Despite that, higher leaf exports and 24% higher cash from operations bulked profits to ensure a decent end-of-year profit.

Total turnover on the Uganda Securities Exchange for the week ended 28th February touched an impressive Ugx 5bn, up from Ugx 2.47bn from the week before. The number of shares traded stood at 13.6 million shares up, from nine million shares.

Umeme was the most active counter with an average 1.6 billion outstanding shares through the week. There were price increases for British American, East African Breweries, Kenya Airways, KCB bank and Nation Media Group. The All Share Index climbed 765 basis points week-on-week to Ugx 1,493.64 while the Local Share Index closed at Ugx 267.88 up by 148 basis points. Eight stocks advanced in price while four stocks declined; an advance to decline ratio of eight to four.

EABL half-year profit up 4%, Ugx 45 per share interim divi­dend

East African Breweries Limited (EABL), the parent company of Uganda Breweries Limited, has announced a 4% jump in profit after tax for the six months ended December 2013. The company posted improved revenues of Ksh31.9bn (Ugx 957bn), from Ksh30.6bn (Ugx 918bn) as profit after tax jumped 4% to hit Ksh8.13bn (Ugx 243.9bn) due to strong business in Uganda.

“We are particularly pleased by the 17% organic net revenue growth in Uganda as a result of improved availability, mix and pricing initiatives,” Charles Ireland, the EABL group boss, said in a statement. “..Though impacted by political instability in South Sudan in the second quarter, EABL remained resilient and delivered a 6% growth in net revenue,” he added at an Investor briefing in Nairobi.

During the period, net financing costs remained broadly flat while profit attributable to shareholders improved by 5% to Ksh3.9bn (Ugx 117bn), directors have recommended an interim dividend of Ksh1.5 (Ugx 45) per share. Across the region, EABL experienced double-digit net sales growth in the premium and mainstream beer and spirits categories, whilst its emerging beer net sales declined by 24% primarily due to the impact of excise duty on Senator Keg in Kenya.

“The excise duty on Senator in Kenya led to significant volume reduction for this brand; however, we delivered strong performance on Tusker, Guinness and our spirit portfolio which partly mitigated the impact of the Senator volume reduction and grew our net revenue in Kenya by 6%,” Ireland said.

In Tanzania, net revenue declined by 11% as Serengeti Breweries Limited reacted to the short-term impact of new route-to-consumer initiatives.

The Tanzanian business moved to a new distribution model which management believes will be the optimal platform for future growth. Group cost of sales declined by 1% due to a reduction in raw material costs and the implementation of initiatives to optimise production processes.

Administrative expenses grew by 26% as a result of the impact of one-off costs related to the recent organisational restructuring, as well as incremental investments to streamline back office processes in Tanzania. However, on an underlying basis, administrative expenses grew by 13%. Net finance costs and taxes have remained broadly flat year on year, with lower interest rates in Kenya offsetting higher borrowing.

Group marketing campaigns such as Tusker Project Fame 6 aimed on Vision group’s Urban TV and others such as the Guinness “Be the Manager”, Bell Lager’s “Welcome to the Bell Nation” as well as Uganda Waragi’s “Vibe is on the Inside” campaign increased sales.

Kenya stock exchange

There was a slight drop in the All Share Index on the Nairobi Securities Exchange (NSE) to Ksh140.36, from Ksh140.85 following spot check on Wednesday, March 5th with turnover for the day hitting Ksh445m (Ugx 13bn).

KCB bank released its end-of-year-2013 financials revealing a rise in comprehensive income to Ksh12.98b (Ugx 398bn), from Ksh12.5 (Ugx 375bn). The board recommended a Ksh2 (Ugx 60) per share dividend.

KCB will hold their annual general meeting at the Bomas of Kenya, in Nairobi on the 9th of May 2014. The shareholders register will be close much later on the 13th May. Top gainers were Longhorn Kenya, Eaagads, and Everready East Africa while National Bank of Kenya, Uchumi, Express Limited, and Pan African insurance performance was rather low.

Rwanda stock exchange

There was a slight increase in the share price of Bank of Kigali, moving to Rwf 332, from Rwf 330. In a media interview, Celestin Rwabukumba, the Rwanda Stock Exchange (RSE) boss five new listing are expected this year to boost activity.

The Rwanda Central Bank notes in reports that the RSE recorded a total turnover of Rwf 25.8 billion (about $38.4 million) from the trade of 42.2 million shares between July and December 2013. Turnover for the same period in 2012 stood at Rwf 11b ($16.4million) traded in 58.2 million shares for the same period in 2012, a 133.18% increase in turnover.

The RSE Rwanda Share Index (RSI) and RSE All Share Index (ALSI) went up by 4.99% and 4.34% respectively from July to December 2013 lower than 50.05% and 22.4% respectively in the year 2012.

Since the RSE’s start in 2011, the bourse has five listed companies, namely, local brewer Bralirwa, Bank of Kigali, and cross listed firms Nation Media Group (NMG), Uchumi Supermarkets Limited and Kenya Commercial Bank (KCB).

March 20th, 2018 | by

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