Companies

Total profit up 50pc on high sales

Fuel-total

A Total fuel station in Nairobi. FILE PHOTO | NMG

Oil marketer TotalEnergies Marketing Kenya posted a 49.7 percent jump in half-year net profit, helped by increased sales on the back of relaxed coronavirus control measures.

The firm made a net profit of Sh1.7 billion in the period ending June, up from Sh1.14 billion a year earlier.

Gross sales grew by 17 percent to Sh51.8 billion on the back of the State easing Covid-19 containment measures by allowing movement across counties and cutting curfew hours.

Net sales, which exclude taxes on petroleum products, rose 9.6 percent to Sh34.4 billion from Sh31.4 billion.

Total said restrictions, which had seen its net sales for the whole of 2020 drop 42 percent to Sh65.4 billion, have relatively eased thus positively impacting the business environment.

“The gross profit increased by 17 percent emanating from increased sales and stable unit margins thanks to price risk management model,” said Olagoke Aluko, the outgoing Total’s chief executive.

The firm has announced the exit of Mr Aluko, who has been replaced by Eric Fanchini effective August 16, 2021.

Mr Fanchini has served TotalEnergies company for the last 18 years, including holding various managerial positions in countries like France, UK and Ivory Coast.

Total’s other income in the half year increased 30 percent to Sh951.5 million in line with continued investments in diversification activities in the company’s retail outlets.

Total runs outlets under the ‘Bonjour’ brand at many of its fuel stations where it sells food, mainly targeting customers who come for fuel.

The firm’s bottom line was also helped by strengthening of the shilling against the dollar, which helped cut foreign exchange losses from Sh80.76 million to Sh2.83 million last year.

Operating expenses dropped marginally from Sh3.14 billion to Sh3.13 billion, with Total linking this on “cost discipline adopted by management to be more efficient and agile.”

The Kenyan economy in the first half of the year has witnessed some recovery compared to the same period last year, helping firms in different sectors including banking to post improved performance.

“The board is confident of positive results in the remaining part of the year,” said Total’s board on the outlook for the full year.

Total raised its dividend payout 20.7 percent last year to Sh1.57 per share from Sh1.3 per share paid for the 2019 financial year.