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EABL Half Year 2012/2013 Results
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hisah
#11 Posted : Friday, February 15, 2013 10:11:31 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
mwekez@ji wrote:
The KES 1.50 interim dividend is a monstrous 40% lower than that the one paid last year of KES 2.50

The financial costs spike for the 19B loan is worrisome with revenues up only 10%.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Ericsson
#12 Posted : Friday, February 15, 2013 10:21:39 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
The market cap of EABL is supposedly to be substituted by KCB.
KCB is on track to be the most profitable company.Only Safaricom is remaining for it to be number 1.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#13 Posted : Friday, February 15, 2013 10:31:49 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
The 19 billion Loan from Diageo is to be repaid in 5 years
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mwekez@ji
#14 Posted : Friday, February 15, 2013 10:31:58 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
hisah wrote:
mwekez@ji wrote:
The KES 1.50 interim dividend is a monstrous 40% lower than that the one paid last year of KES 2.50

The financial costs spike for the 19B loan is worrisome with revenues up only 10%.


Indeed that top line growth of 10% is significantly lower than in previous periods. Alcohol markets in the region are clearly going through a turbulent period given the tough legislation and the killer taxes.

On the dividend, I find it’s now official that EABL won’t dish out dividends like it has done before. The counter has entered an investment mode requiring huge money. They borrowed to purchase Serengeti Breweries in Tanzania and also constructed a new brewery in Moshi, mash filter in Uganda and a canning line in Kenya. New investments lined up include an additional spend of KES 4bn. ….
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mwekez@ji
#15 Posted : Friday, February 15, 2013 10:46:24 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Ericsson wrote:
The 19 billion Loan from Diageo is to be repaid in 5 years


5 years ni mingi. Also notice the display of cash constraints on the upsurge in “short term bank borrowings” and “creditors – payables and accrued expenses”
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erifloss
#16 Posted : Friday, February 15, 2013 10:47:54 AM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
Profit repatriation.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Ericsson
#17 Posted : Friday, February 15, 2013 11:02:31 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
@mwekez@ji 5 years is adequate.You have to give them room to make a profit and give dividends to shareholders even as they repay the loan.
Diageo would not want to strangle the company.
If the company got a green light to open a subsidiary in Ethiopia that would have been a gold mine market.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Kausha
#18 Posted : Friday, February 15, 2013 11:11:21 AM
Rank: Member

Joined: 2/8/2007
Posts: 808
Still wondering what those who were buying yesterday at 315 were seeing....
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mwekez@ji
#19 Posted : Friday, February 15, 2013 11:45:45 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Ericsson wrote:
@mwekez@ji 5 years is adequate.You have to give them room to make a profit and give dividends to shareholders even as they repay the loan.
Diageo would not want to strangle the company.
If the company got a green light to open a subsidiary in Ethiopia that would have been a gold mine market.


In terms of loan structure, this is the best deal EABL could get. The pricing is also fair at 364 days T Bill rate + 1.5% meaning its currently being charged at a low 13.17% (11.67% + 1.5%). ... what i was meaning by "5years ni mingi" is that 5 years is a long time wrestling the financing cost monster that have led to the disappointing results. Imagine 5 more years with this financing monster … i believe we are on the same page on this matter
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mwekez@ji
#20 Posted : Friday, February 15, 2013 11:48:28 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
erifloss wrote:
Profit repatriation.


???? how
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