Eaagads Limited has reported its full financial year results. The company’s financial performance improved with pretax profit jumping to KSh1.7 million from a loss before tax of KSh 51.8 million in the previous financial year. This was a result of the year on year increase in coffee revenues by 115%.
Eaagads’ sales grew to 416 tonnes from 252 tonnes sold in 2017/18. During the year under review, the company produced 419 Tonnes of coffee compared with 154 tonnes produced the prevoius financial year 2017/2018. This was mainly attributed to the favourable weather and good agronomical practices.
Although the company’s financial performance rallied during the last financial year, the reserves of the company are still not substantial enough to warrant a distribution of dividend to shareholders, especially considering the adverse weather conditions experienced in the early 2017 and the declining trend in international coffee prices. Therefore the board of directors do not recommend payment of a dividend in the financial year.