Eaagads(EGADS) Limited, a listed coffee dealer, has posted a 14.16% increase in PAT to 10.88Million driven by 84.57% increase in coffee production, attributable to favourable weather condition, which saw a 64.73% increase in revenue. According to Eaagads financial statements, for the year ended 31st March 2023, fair value revaluation gains increased by 47.55% to 14.29Million, which also contributed to the good performance.
Analysts expect global macro-economic volatilities on commodity prices and inflationary pressures to hit the listed firm’s operations as well as demand and supply of its products.
EGADS did not declare final dividend, similar to financial year ended March 31st 2022. Eaagads was established in 1946 and was incorporated as a private limited liability company, then listed at the NSE in 2001.
The firm engages in growing, blending, and selling of coffee products both locally and in the international markets and is headquartered in Ruiru, Kenya.
Eaagads currently owns 205 hectares of agricultural land in the highlands of Kiambu County, Kenya where Arabica coffee is grown.
In the financial year ended 31st March 2022, EGADS made a net profit of KSh 8.4 billion, an increase from KSh 1.8 billion in 2021.
The company produced 188 tons of coffee compared with 233 tons produced in the year ended March 2021. The decrease was mainly attributed to the unfavourable weather experienced in the year which led to poor flower formation of the late crop for 2021.
EAAGADS achieved sales of 185 tonnes of coffee compared with 233 tonnes in March 2021. The average price realized during the year 2022 increased to US$ 6.90 per kilogram from US$ 5.52 per kilogram in the previous year.
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