BOC Kenya Plc – Half Year Financial Results (30 June 2025)

BOC Kenya Plc - Unaudited Group Results for the 6 months Ended 30 June 2025

Income Statement Performance

Revenue: KSh 724.9M (↑38% from KSh 523.5M in H1 2024).

• Growth was driven by increased demand for medical and industrial gases and engineering projects.

• Pricing adjustments also contributed, as older tenders expired, allowing margin recovery.

Cost of Sales: KSh 332.6M (↑14% from KSh 292.4M).

• Rise is lower than revenue growth → indicates better margins.

Gross Profit: KSh 392.4M (↑70%).

Overheads: KSh 162.7M (slightly ↓ from KSh 165.7M).

• Cost controls are working effectively.

Other Income: KSh 22.0M (↑ from KSh 19.7M).

Profit Before Tax: KSh 251.6M (↑196% from KSh 85.1M).
Profit After Tax: KSh 166.7M (↑170% from KSh 61.8M).

Earnings Per Share (EPS): KSh 8.54 vs 3.16.

Analysis: Strong double-digit revenue growth combined with cost discipline led to a sharp rise in profitability. Management’s pricing strategy and cost containment clearly boosted margins.

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2. Balance Sheet Position

Total Assets: KSh 2.45B (↑19% from KSh 2.06B in June 2024).

• Non-current assets: KSh 784.3M (slight increase).

• Current assets: KSh 1.67B (↑29%), mainly reflecting higher receivables and cash reserves.

Equity: KSh 2.13B (↑12% from KSh 1.90B).

• Retained earnings rose to KSh 1.61B.

• Reserves expanded significantly (KSh 421M vs 201M).

Liabilities: KSh 326.7M (↑105%).

• Current liabilities nearly doubled (KSh 319M vs 152M).

• Non-current liabilities unchanged at KSh 7.6M.

Analysis: The company is equity-strong, with low leverage. The spike in current liabilities may be linked to financing of working capital for ongoing projects, but risk is contained given high cash balances.

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3. Cash Flow Highlights

• Cash from Operations: KSh 209.9M (vs only KSh 14.8M in H1 2024).

• Tax Paid: KSh 41.4M.

• Net Operating Cash Flow: KSh 168.5M (vs outflow of KSh 73.7M).

• Net Investing Cash Flow: Outflow KSh 18.8M (capex).

• Closing Cash & Equivalents: KSh 863M (vs KSh 569M).

Analysis: Significant improvement in cash generation shows stronger efficiency in working capital management and profitability.

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4. Equity Movements

• Opening Equity (Jan 2025): KSh 1.95B.

• Net Profit: KSh 166.7M.

• Other Comprehensive Income: KSh 12.6M (net of translation and FV adjustments).

• Closing Equity: KSh 2.13B.

Analysis: Equity growth is driven by profits and reserve revaluations, with no dividend payouts in H1 (beyond interim declaration).

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5. Dividend Declaration

• Interim Dividend: KSh 2.50 per share (same as 2024).

• Payable on 14 October 2025 to shareholders registered by 20 September 2025.

Analysis: Consistent dividend despite rising profits signals a cautious but shareholder-friendly policy.

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6. Outlook

• Infrastructure investments from prior years are paying off, expanding access and demand for medical gases.

• Management expects performance in H2 2025 to remain stable, with most engineering projects wrapping up before year-end.

Forward View:

• Revenue momentum likely to stabilize, but earnings should remain solid.

• Cash-rich balance sheet with low debt positions BOC Kenya strongly for expansion and resilience.

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Key Takeaways

1. Revenue up 38%, driven by medical & industrial gas demand and better pricing.

2. Profit After Tax surged 170%, reflecting strong margin recovery and cost discipline.

3. Cash flows improved massively, turning positive vs outflow last year.

4. Balance sheet remains strong, with high equity and low debt.

5. Dividend of KSh 2.50 per share maintained, signaling consistency.