KENOL KOBIL HALF YEAR 2011 RESULTS

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Today afternoon KenolKobil announced their results for the half-year period ending June 30^th 2011.

It was a blistering half by KenolKobil and shareholders have been rewarded by an interim dividend of 57 cents which is more than the full year dividend for 2010 full financial year which amounted to 52 cents

	HALF YEAR 2011 Kshs.	HALF YEAR 2010 Kshs.	% CHANGE
SALES	83.3 BILLION	60.3 BILLION	+38.1%
COST OF SALES	76.6 BILLION	56 BILLION	+36.5%
GROSS PROFIT	6.7 BILLION	4.3 BILLION	+58.1%
GROSS PROFIT MARGIN	8.1%	7.1%	+1%
ADMINISTRATIVE AND OPERATING COSTS	1.8 BILLION	1.3 BILLION	+33.2%
OPERATING PROFITS	4.5 BILLION	2.4 BILLION	+89.6%
PROFIT BEFORE TAX	3.2 BILLION	1.7 BILLION	+85.8%
PROFIT AFTER TAX	2.1 BILLION	1.2 BILLION	+82.9%

Retained earnings were at Kshs. 7.8 Billion, a jump of 20.4% from last year’s Kshs. 6.5 Billion

Net cash generated from operations jumped from a negative position of Kshs. 5.7 Billion to a positive position of Kshs. 4.1 Billion

The closing cash and cash equivalents was at Kshs. 10.4 Billion, a huge rise from Kshs. 3.9 Billion last year

Management was bullish about the continued contribution of subsidiaries to the bottom line.

As at today’s closing prices, the interim dividend yield is at 5.2%, much more than the full year dividends from the majority of listed companies. No doubt the company will give something greater.

With the 2^nd Half forecast to be better than last year’s, KenolKobil is set to make a Full Year Net Profit of at least Kshs. 2.87 Billion.

That will give it an Earnings Per Share of 1.95/=. At today’s closing price, this will give rise to Forward Price to Earnings ratio of 5.6.