I agree with @Madebe. I am not going to sugarcoat it. This is a disappointment given the "positive" vibes given to shareholders during the AGM.
Gross Profits are down 10% despite a 8% growth in volumes.
The growth in sales is simply a matter of increased fuel prices.
The net margins have taken a beating.
The Opex is down but that's a sleight of hand given the non-recurring KPRL expense.
There a +52mn turnaround in forex gains but that is a fickle line item. It's usually a forex loss given the general trend of the KES.
The Finance Charges are up huge given the higher oil prices and volume growth. Borrowings at 10.7bn which is almost +50% YOY.
After accounting for the options awarded to Ohana, the EPS has dipped to 1.065 for 1H which is a far cry from the 2.50 - 2.90 expected for the FY.
No, I am not impressed though I do admit that 1H 2018 has been tough for many firms given the high KES interest rates, increasing LIBOR and general malaise. KK needs to push all the right buttons in 2H to meet the 2.50 target.
2H will be tough with what's going on. I wonder what the hit will be on margins and volumes when VAT is likely to be introduced in September.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett