Major shareholder is currently studying bids for its stake in the firm
Kuwait Food Co (Americana), whose major
shareholder is studying bids for its stake in the firm, posted a 33.6 percent
jump in third-quarter net profit on Wednesday as revenue rose and costs fell.
The firm made 10.9 million dinars ($37.45 million)
in the three months to September 30, compared to 8.2 million dinars 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 5 percent year on year
to 218.2 million dinars - 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.