Vivo Energy's diluted earnings decline but gross profits on the rise

By Edward West Time of article published Aug 2, 2019

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CAPE TOWN – Vivo energy, the African fuel retail group with a secondary listing in Johannesburg, said diluted earnings per share fell to 4.8 US cents (R0.68) a share in the six months to June 30, from 5.3c at the same time last year, after sales volumes from its Engen branded markets fired up sales volumes 8 percent. 

Its Shell-branded volumes, however, increased only 1 percent, due to lower retail volumes and commercial segment cyclicality, Vivo management said yesterday. 

Gross profit increased 2 percent to $318 million (R4.62 billion), driven by higher volumes and partially offset by an expected lower cash unit margin of $70 per thousand litres. 

Adjusted earnings before interest, tax and depreciation amortisation increased 4 percent to R212m. 

An interim dividend of 1.1c per share was declared, up from 0.7c at the last half-year. 

The retail network was expanded by the opening of 41 new retail service stations and 50 non-fuel retail offerings. 

A non-fuel joint venture with Kuku Foods East Africa Holdings, the owner of KFC franchises in East Africa, had been agreed to accelerate the roll-out of KFC restaurants in Kenya, Uganda and Rwanda, with expected completion later in the year. Initiatives to improve cost efficiencies and reduce operating expenses were ongoing. 

BUSINESS REPORT

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