Total Kenya Profit Flat at Kes 1.14 Billion in 1H2020.
Total Kenya Plc has posted a marginal growth in Profit before tax for the first six months of 2020 at Kes 1.5 billion from the Kes 1.67 Billion the company posted in a similar period in 2019.
Total recorded a decrease in net sales by 52% as a result of lower bulk sales in the Open Tender System (OTS), slowdown in the economy and lower oil prices.
The company however was able to realise a profit after tax of kes 1.13 billion in the first half of 2020, a 2% increase from kes 1.1 billion posted in the same period last year. The company’s board has attributed the profit to the effective plans put in place by the management from the onset of the pandemic.
This led to a decrease in gross profit by 4% from kes 4.144 billion in 2019 to kes 3.99 billion during the period ended 30th June 2020.
Despite the decrease in gross profit total Kenya plc recorded an increase in gross profit margin ratio to 13% in the first six months period from 6% during the same period last year.
The company also recorded an increase in other income 38% during the period under discussion. The increase in income was attributed to increase in disposable income in the company.
Total kenya recorded a foreign exchange loss of 21 % to kes 81 million in the period ended 30th June 2020 from kes 102 million during the same period in 2019, attributed to the valuation of liability in foreign currency impacted by depreciation of the Kenyan shilling against the dollar.
The board noted that the environment remains challenging due to the uncertainty of the COVID-19 related impacts as well as the extent and speed of the economic recovery post pandemic period and reiterates that they are confident that the Company will register positive results in the remaining half of the year.
The board of management in Total Kenya did not recommend payment of an interim dividend