Kuwait Food Co (Americana) posted a 12.3 percent fall in first-quarter net profit on Thursday, citing higher costs and losses from foreign exchange for the decline.
The operator of restaurant franchises in the Middle East including KFC made a net profit of 15.2 million dinars ($50.5 million) in the three-month period ending Mar. 31, down from 17.3 million in the prior-year period, it said in a bourse statement.
The company blamed an increase in operating costs and losses from foreign exchange for the decline in profits without elaborating. The fall in profit happened despite total operating revenue increasing 1 percent on the same quarter last year to 242.0 million dinars.
Americana's major shareholder, Kuwait's billionaire al-Kharafi family, on 4 February said it had signed an initial agreement to sell their holding to Adeptio Group subject to due diligence and approvals from Americana's board and regulatory authorities.
The Gulf investment firm completed due diligence in April, with the chairman of the Kuwaiti food firm saying later that month the fact they hadn't asked for an extension was a positive sign.
A $1.5 billion loan is being raised by Adeptio to help fund the acquisition. Citi was backing it but pulled out due to compliance concerns relating to Americana's business in Iran, sources told Reuters on April 28. The remaining banks on the deal have since replaced Citi's contribution.