KenolKobil Ltd. (KNOC), a Kenyan fuel retailer operating in 10 countries, dropped to its lowest level in more than 15 months after reporting a full-year loss.
The shares fell 7.2 percent to 9.70 shillings by the 3 p.m. close in Nairobi, the lowest price since Dec. 28, 2011, according to data compiled by Bloomberg. About 985,500 securities changed hands, 129 percent of the three-month daily average. The Kenyan stock market was closed yesterday.
KenolKobil swung to a loss of 6.28 billion shillings ($74 million) in the 12 months through December compared with a profit of 3.27 billion shillings a year earlier, it said April 8. The “most significant” impact on results came from a foreign-exchange loss of 4.6 billion shillings in the year, the company said, while sales declined 13 percent to 192.5 billion shillings. Sales volumes fell 21 percent. Gross profit dropped to 4.29 billion shillings from 12.3 billion shillings.
While a loss was expected, “what is of concern is the thin gross margin that they reported and the reduction in volumes,” Emma Mareri, an analyst at Nairobi-based African Alliance Kenya Securities Ltd. said in a phone interview today.
KenolKobil didn’t declare a dividend. The shares have fallen 27 percent this year, the worst-performing stock on the Nairobi Securities Exchange All-Share Index (NSEASI), which has gained 27 percent during the period.
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