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