40 local tHE Star Monday, February 18, 2013

Hbusiness UP TO DATE, ACCURATE BUSINESS INFORMATIONNEWS YOU CAN USE, EVERY DAY

BY PETER KIRAGU

THE amount of money transacted by Kenyans using their mobile phones grew by over 50 per cent to hit Sh1.4 trillion in the financial year ended June 30 2012, Cen-tral Bank data shows.

The rapid growth of the mobile phone money trans-fer service use from Sh919 billion in 2011 was helped by a 39.51 per cent growth in the number of transac-tions.

The number of transac-tions increased from 364.06 million in the year to June 30, 2011 to 507.90 mil-lion in the year to June 30, 2012.

In the period, the cus-tomer base of persons using services such as M-Pesa, Air-tel Money, Orange Money and Yu Money increased by 10.06 percent from 17.99 million customers to 19.8 million customers.

The number of agents in-creased by 31.61 per cent from 46,588 to 61,313 in the same period with M-Pe-sa accounting for 76.42 per cent, Zap 19.0 per cent and Yu 2.8 per cent. These sta-tistics are contained in the CBK 2012 annual report.

The number and value of transactions are expected to go up this year based on the growth of number of mobile phone users. According to

the Communication Com-mission of Kenya, between June and September 2012, the total number of mobile subscriptions was recorded as 30.4 million up from 29.7 million posted in the previ-ous quarter. This represents an increase of 2.5 percent during the period and 15.0 per cent when compared to the same period of the previ-ous year.

“The continued growth in mobile subscriptions in-dicates that there is still op-portunity for growth in the mobile telephony services,” says the CCK in a different survey. However, the rate of growth in the subscriber base is flattening as the sec-tor progressively tends to-wards maturity, CCK notes.

“The use of mobile money

transfer service has contin-ued to transform the way of doing business and enhanced financial inclusion, particu-larly for the unbanked,” the communication sector regu-lator notes. “This growth indicates that the mobile money transfer service has become a key payments and transaction tool, mainly due to its easy use of applica-tions, convenience and low cost value propositions.”

For the year ended June 30 2012, the currency in circulation increased from Sh147.76 billion as at the end of June 2011 to Sh159.49 billion, reflecting an increase of Sh11.73 bil-lion. Bank notes account for 96.93 per cent, while coins account for 3.07 per cent of currency in circulation.

BY STAR REPORTER

NAKUMATT Supermarket plans to spend Sh1 billion this year to roll out new branches in both Kenya and Uganda as part of the retailer’s corporate expan-sion strategy.

The supermarket, with a branch network of 39, plans to open five branches across the region this year.

Managing director Atul Shah said the ongoing expansion drive will also focus on the upgrading of existing branches to en-hance the stores ambience, layout and product variety.

He was speaking on

Friday during the official opening of the new Sh400 million Nakumatt Super-market branch on Thika Road.

The branch is located at the ultramodern Thika Road Mall and covers a shopping floor space of 80,000 square feet.

The store features Kenya’s first integrated touchscreen checkout tills, a moving walk (travelator) and a variety of energy sav-ing retail fittings and solu-tions imported from Italy.

“The year 2013 promises to be a busy year for Naku-matt as we prepare to open at least five more branches

in Uganda and Kenya as part of our expansion strategy. We shall continue investing heavily in our bid to maintain exceptional customer service stand-ards,” Shah explained.

And added: “the open-ing of these branches also confirms our underlying confidence in the regional economies and the positive prospects for world class retail solutions; which we are now setting out to ad-dress.

During the function, shoppers enjoyed a variety of rewards and price dis-counts to mark the stores grand opening.

Nakumatt to expand by Sh1bn

Mobile money moved Sh1.4 trillion in 2012

Can you outsmart the expert?

alY KHaN’S Star

PortFolIo

EABL is the Tusker [elephant] at the Nai-robi Securities Exchange. It has a market capitalisation of Sh233.278 billion which equates to $2.666b and of itself consti-tutes 16.1549 per cent of the capitalisa-tion of the entire securities exchange.

Since the start of January 2012 through this morning, EABL has returned 76.453 per cent on a total return basis. The Nairobi All Share returned 58.136 per cent over the same period. EABL has outperformed the All Share by 1,831 basis points and 31.507 per cent.

That 31.507 per cent outperform-ance is the elusive Alpha, the holy grail of performance. For investors, EABL has been the sweetest of sweet spots and an iconic share in their portfolios. Last week and ahead the release of EABL’s first half earnings, four out of Diageo PLC’s 16 executive member committee visited Nairobi.

The COO, Ivan Menezes, Nick Blazquez, the president of Africa and a lot else, David Gosnell president of Global Supply and Procurement and Siobhan Moriarty, the General Counsel Designate.

I have previously mentioned my proprietary ‘foot traffic’ indicator [which tracks the global CEOs and senior management of international companies coming through Nairobi] and that indica-tor remains at its most elevated ever and since independence.

I had a chance to have dinner with Devlin Hainsworth and the members of the Diageo executive committee and my take-away was that EABL was not some far flung piece of the empire, it has popped big onto Diageo’s radar.

The commitment to EABL was rock solid as well it should be. EABL has been in the game for 91 years after all.

On Friday morning, I took myself off to the Serena to listen to the first half earn-ings release. Given that EABL represents 16.1549 per cent of the value of the entire Nairobi Securities Exchange, it is a big set piece moment.

Devlin Hainsworth, the CEO, has been in seat for just over seven months and has a very compelling gusto and momen-tum about him and his delivery.

I find the study of body language as valuable as crunching the numbers and Devlin’s body language is all about forward motion.

Even Chris Kirubi, who tends to ask the first question in the Q and A session, was taken by Devlin’s delivery.

I thank Devlin for the post results release interview and will publish it here

http://www.rich.co.ke/rctools/richtvi.php imminently. It’s well worth watching.

The headline H1 numbers read as follows, H1 revenue +10.28188% at Sh30.663 billion, profit from operations +7.467% at Sh7.858 billion, net finance costs increased to [Sh2.061 billion] +221% and that was correlated to the financing that was put on the balance sheet in order to buy back the 20 per cent of Kenya Breweries Shares.

Therefore, H1 profit before taxation was crimped by -13.088455% to Sh5.797 billion and for the most part by the fi-nancing. The business generated Sh7.424 billion of cash from operating activities during this reporting period.

The reflexive reaction on Friday was to take profits at the Securities Exchange. EABL had set a succession of record highs through the end of 2012 and practi-cally every other session in 2013.

Looking beneath the surface results noise, this is a muscular machine. EABL is doubling down and chasing growth as well they should. They have geographi-cal reach. Kenya remains EABL’s largest market by revenue and Kenya revenue grew 12%. Tanzania’s Serengeti’s revenue growth was faster still at +16% and had to hurdle increased taxes.

EABLi [the frontier piece of EABL’s portfolio which includes Sudan, Rwanda, Burundi and DR Congo] accelerated 28%. Uganda at +3.00% was softer than the rest. The EAC is the 2nd fastest grow-ing region in the world after ASEAN and EABL is in the saddle and riding this tiger.

The entire beer portfolio grew 11%. Spirits grew 9%. The premium spirits portfolio expanded an eye popping 45% and that speaks to the emerging and now emerged middle class in the region and the premiumisation opportunity. EABL’s product range has breadth and depth.

From Senator beer to their new in-novation Jebel Gin which to quote Joe Muganda the MD of Kenya Breweries is ‘flying off the shelves’ at the mass market price points to the iconic Tusker beer and Johnnie Walker brands, EABL is a business that is playing a long game and seeking to slake the thirst of East Africans and beyond.

EABL is playing an offensive game under its captain. Its doubling down on growth. The short term earnings noise is all about inflecting and steepening the earnings trajectory. Make no mistake about that. We will see new all time highs in the share price.

Shares go up and down and readers are advised that this column represents Mr Satchu’s personal opinions.

A LOOK AT EABL FIRST-HALF RESULTS POINTS TO BRIGHTER DAyS

PoPular: M-Pesa commands 80% of mobile money services.