Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Eaagads of Kenya Shares Gain Most in Six Months on Outlook

Nov. 29 (Bloomberg) -- Eaagads Ltd., a Kenyan coffee producer, jumped the most in more than six months after it said earnings are expected to improve in the second half.

Shares in the Ruiru, Kenya-based company climbed 5 percent to 37 shillings by the 3 p.m. close in the capital, Nairobi. That’s the biggest gain since May 9, according to data compiled by Bloomberg.

Eaagads announced earlier today that net income fell 26 percent to 26.3 million shillings ($294,447) in the six months through September even as sales grew 5.9 percent to 68.4 million shillings. The company didn’t repeat a revaluation of its biological assets that resulted in a gain of 47.3 million shillings a year earlier because of the shilling’s volatility on domestic foreign-exchange markets this year.

“There is an outright biological gain that has not been booked,” Aly Khan Satchu, chief executive officer of Nairobi-based investment company Rich Management, said in a phone interview. “The reaction in the share price is confirmation that investors have mentally calculated that the biological gain is worth about 6 shillings to 7 shillings a share.”

Eaagads expects the exchange rate to stabilize and the company to post “better results” in the second half of the fiscal year, it said.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.