69 and rising
Three companies going through significant times:
East African Breweries (1/5 of the value Nairobi Stock Exchange) ended its year on June 30th. Looking at its half year numbers, it is on track to have ended the year with 22 billion in sales and a profit before tax of 9 – 10 billion shillings, with beer consumption up over 20% in 2004/5. During the year the company did a 5 for 1 stock split and also got listed on the Dar es Salaam stock exchange in June.
Was the first company Kenyan company on the Dar es Salaam, and it can be argued that Tanzanian investors are the ones who kick-started the stunning appreciation of KQ shares. The company started the year at 17 shillings a share, and six months later the shares are at 69 shillings per share, a 300% increase.
All was not rosy despite the super-profits (6.9 billion from sales of 27 billion) that they announced last week. Negotiations will begin on July 12 between the government and Vodaphone over their 1998 shareholders agreement. Despite his desire to continue as MD Michael Joseph’s contract was renewed for only six months, making it likely that Government will push to have a Kenyan MD by year end.