Total Kenya has released its financial results for the FY2020, indicating a 30% growth in net profit of Ksh. 3.297 billion. This is a reduction compared to the Ksh. 2.535 billion that the company posted the previous year.
The company attributed the performance to the effective action plans put in place by the board and management from the start of the coronavirus pandemic.
Other income increased to Ksh. 1.903 billion, compared to Ksh. 1.496 billion registered the previous year. This increase mainly resulted from the continued investments in Shop, Food and Services (SFS), rental income from partnership with third parties and sundry income coming from VAT relief received in the year.
Operating expenses have been controlled at the same level as last year. Net finance income of Ksh. 86 million resulted from positive cash position in Kenya shillings emanating from better working capital management. The foreign exchange loss increased to Ksh. 144 million compared to Ksh. 106 million in 2019. The loss is attributable to the valuation of liabilities in foreign currency impacted by the depreciation of the Shilling against the US Dollar in the period.
The Directors recommend payment of a first and final dividend per share of Ksh. 1.57 declared for the year ended 31st December 2020.
This will be Payable on or around 30th July 2021, subject to shareholders’ approval at the 67th Annual General Meeting to be held virtually on 25 June 2021.
The Company maintains that its priority is to generate a level of cashflows that allows it to continue to invest in profitable projects, to preserve an attractive shareholder return and maintain a strong balance sheet. The Company will continue to focus on safety, operational excellence and cash flow generation while mitigating challenges caused by the impacts of the pandemic.