Kuwait’s Americana Posts 33.6% Q3 Net Profit Jump

Kuwait Food Co (Americana), whose major shareholder is studying bids for its stake in the firm, posted a 33.6 per cent jump in third-quarter net profit on Wednesday as revenue rose and costs fell.

The firm made KD10.9 million ($37.45 million) in the three months to September 30, compared to KD8.2 million in the corresponding period of 2013, the bourse filing said.

Americana attributed the rise in its bottom line to a combination of higher operating revenues – which grew five per cent year on year to KD218.2 million – and lower general and administrative expenses. It didn’t elaborate further.

Founded in 1964 in Kuwait, Americana has interests in restaurants and packaged food across the Middle East and North Africa. The company is a franchise operator in the region of restaurants including KFC and Pizza Hut, owned by Yum Brands.

The company said last week that a major shareholder, Al Khair National for Stocks and Real Estate Co, which is owned by the al-Kharafi group, was in preliminary talks with “various parties” to sell its stake in the firm.

While they didn’t name the bidders, interest in the firm has come from Saudi Arabia’s Savola Group and Western private equity firms KKR & Co and CVC Capital Partners, who are bidding together.

Following the announcement, trade in Americana’s shares resumed after it had been suspended in mid-September on news of a potential stake sale.

Americana’s stock closed flat in Kuwait, with the earnings disclosure coming after market hours.